Sensex, Nifty trade flat as tariff updates keep D-street mood in check

Business Standard

5 days ago

Benchmark equity indices were trading flat, albeit with a negative bias, as market sentiment remained cautious amid fresh concerns over trade tariffs. While the US government is planning to send letters to trade partners outlining new tariffs, Commerce Secretary Howard Lutnick mentioned that the likely tariff deadline will go into effect on August 1. Meanwhile, SEBI's probe into Jane Street is also keeping investors on edge.
At 11:50 am, BSE Sensex was down by a mere 78 points, trading at 83,355.91 level. Whereas, NSE Nifty was trading below the psychological 25,500 level, down by just 21 points.
D-Street's fear gauge, Nifty VIX, surged by over 2 per cent as tariff-related uncertainties dominated market sentiment. Sectorally, Nifty FMCG was among the top-performing indices after several big players in the industry released their quarterly updates. Nifty PSU Bank was just marginally up by 0.19 per cent, trading at 7,166.
However, major sectors were trading in red, with Nifty Media being the worst performer, down by 1.31 per cent.
From the Sensex pack, Hindustan Unilever (HUL), NTPC, Asian Paints and Reliance were among the top gainers. On the flip side, Tech Mahindra, Bharat Electronics, Eternal (Zomato), UltraTech Cement and Maruti Suzuki were the top laggards.
Broader markets also stayed volatile. The Nifty Midcap 100 was trading at 59,581, down by 0.16 per cent. The pain was deeper in the Nifty Smallcap 100, which slipped 0.48 per cent to 18,942.
Consumer stocks shine
Shares of major FMCG players, including Dabur and Godrej Consumer Products, witnessed a sharp rise of as much as 5 per cent on the bourses as investor mood turned euphoric after healthy quarterly updates. For instance, Dabur is expecting strong performance in its healthcare, home and personal care segment. However, the beverage portfolio might see some pain due to uneven monsoons.
Hindustan Unilever shares experienced similar momentum and were among the top gainers from the Sensex pack.
The Nifty FMCG index, which has struggled to trade in green territory so far this year, was trading at 55,500 level, experiencing an increase of 1.4 per cent. In contrast, the benchmark Nifty index was trading flat.
Momentum in check
The ongoing geopolitical events will keep markets consolidated in the near-term, as per analysts. But the earnings season might bring out some movement if Q1 delivers some surprises.
"The short-term issues are unlikely to have any long-term impact on the market. Short-term dips can be used by long-term investors to buy high quality stocks, preferably in fairly valued largecaps," said VK Vijayakumar, chief investment strategist at Geojit Investments.