Sensex, Nifty Erase Gains as US-India Trade Talks Cast Shadow
Overview
Indian equity benchmarks Sensex and Nifty reversed early gains Monday, trading lower as investors awaited outcomes of US-India trade discussions. The US Ambassador confirmed talks were underway. While some stocks like SBI and Maruti Suzuki advanced, major indices faced selling pressure, with broader markets showing mixed performance and sectoral variations.
Stocks Mentioned
Market Turns South Amid Trade Talk Anticipation
Indian equity benchmarks reversed earlier gains on Monday, with the BSE Sensex and NSE Nifty slipping into negative territory as investors adopted a cautious stance ahead of crucial US-India trade discussions. The market's sentiment shifted as the US Ambassador to India, Sergio Gor, confirmed that trade discussions between the two nations would commence.
The BSE Sensex, which had surged by nearly 270 points in morning trade, ultimately fell 190 points, or 0.23 percent, to trade at 83,688. Similarly, the Nifty50, after testing the 25,900 mark, erased its early advances to hover at 25,747, down 43 points or 0.17 percent. This retreat highlights investor apprehension regarding potential trade policy shifts.
Sectoral Performance and Stock Movers
Within the large-cap segment, companies like Tech Mahindra, SBI, HDFC Bank, Maruti Suzuki, Hindustan Unilever, ITC, and Axis Bank managed to post gains of up to 3 percent. However, heavyweights such as L&T, Reliance Industries, Tata Steel, and TCS traded in the red, dragging the overall indices lower.
The broader market presented a mixed picture. The Nifty MidCap index saw a slight decline of 0.17 percent, while the Nifty SmallCap index edged higher by 0.39 percent. Sectoral performance was varied, with the Nifty PSU Bank index leading gains with an 0.88 percent rise. The Nifty FMCG, IT, and Metal indices also registered modest increases of approximately 0.3 percent each. Conversely, the Nifty Pharma index experienced a dip of 0.25 percent.
Global Cues and Domestic Flows
Market participants also monitored global developments. While US equities closed higher with the Dow and S&P 500 reaching record highs, Asian markets opened with gains. The US dollar weakened, providing some respite to the Indian Rupee, which saw a marginal recovery. On Monday, Foreign Portfolio Investors (FPIs) offloaded equities worth ₹3,638 crore, whereas Domestic Institutional Investors (DIIs) were net buyers, injecting ₹5,839 crore into the market, a divergence that investors will continue to watch.
