Is the Stock Market Stuck in a Flat Zone as the August 1 US Tariff Deadline Approaches?

Mumbai, July 22 (NationPress) The Indian stock market ended the day nearly unchanged on Tuesday, reflecting a mix of sentiments as investors seek further clarity regarding the interim US-India trade agreement ahead of the looming August 1 deadline.

The recent activity in the domestic market indicates a cautious approach, with numerous investors choosing to book profits amidst significant volatility from quarterly results.

The Sensex concluded at 82,186.81, a slight decline of 0.02 percent or 13.53 points. The 30-share index began the session positively at 82,527.27, compared to the previous day's close of 82,200. However, the market remained range-bound due to selling pressure in major stocks such as Reliance, SBI, Tata Motors, and L&T.

Nifty finished at 25,060.90, down 29.80 points or 0.12 percent.

The market is currently facing volatility driven by quarterly earnings announcements. However, the overall sentiment remains mixed as participants respond to company-specific figures and await further clarity from global developments, including ongoing US trade negotiations, according to Ashika Institutional Equities.

Within the Sensex basket, Tata Motors, Reliance, SBI, ITC, Ultratech Cement, L&T, Infosys, HCL Tech, and Sun Pharma ended in the red. Conversely, Eternal, Titan, BEL, Hindustan Unilever, Maruti, and Mahindra and Mahindra were the top gainers.

In the Nifty50, 33 shares declined, 16 advanced, and 1 remained unchanged.

Among sectoral indices, Bank Nifty, Nifty FMCG, and Nifty IT concluded the session lower, while Nifty Financial Services ended flat.

Broader indices followed a similar trend. Nifty Midcap 100 fell by 364 points or 0.61 percent, Nifty 100 dropped 41 points, and Nifty Smallcap 100 settled 64 points or 0.34 percent lower.

The rupee traded lower by 0.08 percent at 86.36 as the domestic capital markets remained weak and the dollar index hovered flat to slightly positive near 97.86.

“Market participants are now focusing on Fed Chair Powell’s upcoming speech, which could sway global currency sentiment. The rupee is anticipated to remain within a range of Rs 85.75–Rs 86.60,” stated Jateen Trivedi of LKP Securities.

Attention is on quarterly earnings, which have slowed recently after some momentum from banking stocks. The positivity observed on Friday and Monday has diminished ahead of the crucial August 1st deadline regarding the US trade agreement.

“A boost in Q1 earnings will be crucial to maintain the current premium valuations. Ongoing profit booking by foreign institutional investors (FIIs) exerts downward pressure, while stable inflows from domestic institutional investors (DIIs) could support a range-bound movement with a positive outlook towards Q1 results and the trade deal,” commented Vinod Nair, Head of Research at Geojit Investments Limited.