Sensex falls over 100 pts, Nifty below 24,700 amid US trade deal jitters

Time of India

6 days ago

Indian equity benchmarks experienced a decline for the fourth consecutive session, influenced by uncertainties surrounding a delayed interim trade agreement with the U.S. and continuous foreign fund outflows. Weak corporate earnings further contributed to the downward pressure. Investor sentiment remains fragile amidst geopolitical and economic concerns, with specific stocks like Bharat Electronics and Infosys facing losses.
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Indian equity benchmarks opened lower for the fourth consecutive session on Tuesday, weighed down by uncertainty over a delayed interim trade deal with the United States, continued foreign fund outflows, and weak corporate earnings.At 9:24 am, the BSE Sensex was down 117 points, or 0.15%, at 80,73, while the Nifty50 declined 36 points, or 0.15%, to 24,651.Foreign portfolio investors (FPIs) offloaded Indian equities worth Rs 6,081 crore ($700.92 million) on Monday, as per provisional data — their biggest single-day selling since May 30. The sharp outflow has heightened concerns about near-term market volatility.Investor sentiment remains fragile ahead of the August 1 deadline set by U.S. President Donald Trump for progress on a trade agreement, with fears growing over potential geopolitical and economic repercussions from further delays.In early trade, Bharat Electronics (BEL), Eternal, Infosys, ICICI Bank, TCS, and HDFC Bank were among the top laggards on the Sensex, falling up to 2.5%. Meanwhile, Reliance Industries, Adani Ports, Tata Motors, and Power Grid opened in the green.On the sectoral front, the Nifty IT index slipped 0.4%, weighed down by losses in Infosys, Wipro, and Coforge. In contrast, Nifty Metal, Realty, and Oil & Gas indices gained over 0.5%, offering some support to the market.In the broader market, the Nifty Midcap 100 edged up 0.1%, while the Nifty Smallcap 100 declined 0.4%, reflecting mixed sentiment across segments.Among individual stocks, Waaree Energies surged over 4% after the company reported an 89% YoY jump in consolidated net profit for Q1 FY26, coming in at Rs 745 crore compared to Rs 394 crore in the same period last year."There are more headwinds than tailwinds for the market now. The major issue weighing on markets is that the expected trade deal between India and the US has not happened so far and the probability of a deal before the August 1 deadline is becoming lower. President Trump's success in reaching deals with Japan and EU, which were advantageous for the US, may further make the US position harder on deal with India," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments."Sustained FII selling is impacting the market despite the DII buying. It is better to remain in a wait and watch mode," Vijayakumar added.Hardik Matalia, Derivative Analyst at Choice Broking, said, "After a negative opening, Nifty can find support at 24,600 followed by 24,500 and 24,300. On the higher side, 24,800 can be an immediate resistance, followed by 24,900 and 25,000."Asia shares eased on Tuesday while the euro nursed its losses as investors pondered the downside of the U.S.-EU trade deal and the reality that punishing tariffs were here to stay, with unwelcome implications for growth and inflation.Japan's Nikkei eased 0.8%, while Chinese blue chips fell 0.1%.European shares steadied after Monday's sell-off. EUROSTOXX 50 futures edged up 0.2%, while FTSE futures and DAX futures both added 0.1%. S&P 500 futures nudged up 0.1%, while Nasdaq futures added 0.2%.The selling from Foreign institutional investors (FIIs) extended for the sixth day as they sold equities worth Rs 6,082 crore on July 28, while Domestic institutional investors (DIIs) bought equities worth Rs 6,764 crore on the same day.