IT, Metal, Realty Stocks Slide Up To 4% Amid Trump Tariff Shock, Fed Decision
Indian equities witnessed a sharp selloff on Wednesday, July 31, with stocks in the IT, metal, and realty sectors falling over 1% each in early trade. The broader indices mirrored the weakness—Sensex declined 460 points to hover around 81,022, while Nifty dropped 141 points to 24,714. The decline came amid a double whammy of geopolitical and macroeconomic developments.
Investor sentiment was hit after US President Donald Trump, in a post on Truth Social, announced a sweeping 25% tariff and additional penalties on Indian imports. While calling India a 'friend," he criticized New Delhi for maintaining some of the 'highest tariffs in the world" and penalized it for continuing trade ties with Russia, particularly in the defence and energy sectors. The timing of the move—just ahead of the August 1 trade framework rollout—has added to concerns about deteriorating bilateral ties.
The Nifty IT index fell 1% to 35,161, snapping a two-day winning streak. Major laggards included Coforge and Wipro, both down nearly 2%, while Infosys, Mphasis, and Tata Consultancy Services slipped over 1% each. Persistent Systems, Tech Mahindra, and HCL Tech also traded lower.
Bhavik Joshi, Business Head at INVasset PMS, noted that IT stocks remain under pressure due to continued demand uncertainty. 'The recent wave of layoffs and hiring freezes signals that the demand environment is still weak. Budget cuts and delayed decision-making by global clients are adding to the drag. A second-half recovery now appears more delayed than previously hoped," he said.
Metal Stocks in the Red
The Nifty Metal index also lost nearly 1%, falling to 9,331. Hindustan Copper was the top loser, tumbling over 4% to ₹247. Adani Enterprises declined nearly 1.5% ahead of its Q1 FY26 earnings release. Other notable losers included NMDC, Jindal Steel & Power, Hindustan Zinc, and Welspun Corp, each down more than 1%. Stocks such as Vedanta, Hindalco, Tata Steel, and SAIL traded with marginal losses.
Joshi noted that while metals are currently under pressure due to tariff-related concerns, the broader setup remains potentially favourable. 'With global stimulus chatter gaining pace and inventories remaining low, we could see a sharp reversal once the trade uncertainty clears," he added.
Nifty Realty also dropped over 1% to trade around 907, marking its second straight day of losses. Sobha led the fall with a 2.1% drop, followed by Oberoi Realty, Phoenix Mills, and Raymond, each slipping nearly 2%. Prestige Estates and Anant Raj fell over 1%, while DLF and Brigade Enterprises were marginally lower.
Despite the weakness, Joshi remains optimistic about the sector's outlook. 'Real estate is quietly gaining traction. Rising institutional interest, strong pre-sales, and improving rental yields indicate there is real demand in the premium residential and commercial segments, not just speculation," he said.
Analysts suggest traders maintain a cautious stance amid the volatility. 'Given the heightened uncertainty and mixed technical signals, traders should adopt a 'sell-on-rise' approach and manage risk through tight trailing stop losses. Only initiate fresh long positions if Nifty sustains above the 25,000 mark," said Hardik Matalia, Derivative Analyst at Choice Equity Broking.
Meanwhile, Utsav Verma, Head of Research – Institutional Equities at Choice Broking, said there is still room for optimism. 'We believe the tariff rate may eventually settle around 15%, which would restore investor confidence and pave the way for stronger trade ties. In the short term, markets may remain rangebound but are likely to stay earnings-focused rather than reacting with panic."
About the Author
Aparna Deb
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a...Read More
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