Stock Market Closes Amid Tariff Uncertainty, Benchmarks Sensex And Nifty End Lower

On the 30-share Sensex, Eternal, Titan, M&M, Sun Pharma, and ITC ended the session higher. Meanwhile, Tech M, Infosys, Asian Paints, Bajaj Finance, and HCL Tech dominated among laggards.

According to stock exchange data, FIIs pulled Rs 5,104.22 crore from domestic equities on Friday, intensifying downward pressure on the rupee and dampening equity market sentiment.

Source : Freepik

The Indian stock markets ended the first trading session of the week on a weak note. The BSE Sensex settled for the day at 82,253, taking a hit of nearly 250 points, while the NSE Nifty50 reached 25,087, slipping more than 60 points. 

On the 30-share Sensex, Eternal, Titan, M&M, Sun Pharma, and ITC ended the session higher. Meanwhile, Tech M, Infosys, Asian Paints, Bajaj Finance, and HCL Tech dominated among laggards.

In the broader markets, the Nifty Smallcap50 and Midcap Select drove the gains and closed over 1.14 per cent and 1.09 per cent higher respectively.

Sectorally, the Midsmall Healthcare and Realty indices stood out and ended 1.95 per cent and 1.39 per cent higher respectively.

WPI Inflation Touches New Low In June

The WPI inflation data for June was released today. Measured by the Wholesale Price Index (WPI), the wholesale inflation slipped into negative territory in June, marking the first such decline in 2025. Official data from the Ministry of Commerce and Industry on Monday stated that WPI inflation stood at -0.13 per cent during the month, largely due to a drop in food and fuel prices.

The latest figures indicate a continuation of the softening trend that began earlier this year. Since March, wholesale inflation has been easing steadily, with May recording a 14-month low of 0.39 per cent. The downtrend extended into June, pushing the index below zero.

A closer look at the components shows that food prices declined by 0.26 per cent year-on-year in June, while fuel and power prices dropped more sharply, down 2.68 per cent from the same period in 2024. These reductions played a significant role in dragging overall wholesale inflation into negative territory for the month.

The decline in wholesale inflation mirrors trends seen in consumer prices as well. According to earlier data, India’s Consumer Price Index (CPI)-based inflation fell to 2.82 per cent in May—the lowest level of retail inflation recorded since February 2019.

Markets Opened On A Weak Note Today

Notably, both benchmarks, Sensex and Nifty, began Monday morning on a cautious footing as investors braced for heightened volatility. The GIFT Nifty index, considered a key early indicator of market sentiment, was up just 4 points at 25,195.5 as of 9 AM, signalling a flat start for Indian equities. As markets opened, both indices reflected weakness, with the Sensex slipping over 100 points to 82,389 and the Nifty falling by 41 points to 25,109 at 9:16 AM.

“India remains out of the tariffs band for now with negotiations still on to finalise the amount of tariff that the US could apply,” noted Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

Investor caution was further reinforced by persistent foreign institutional investor (FII) selling. According to stock exchange data, FIIs pulled Rs 5,104.22 crore from domestic equities on Friday, intensifying downward pressure on the rupee and dampening equity market sentiment.