Trump's Tariff Deadline Makes Investors Wary, Sensex, Nifty Open Monday In Red

India’s equity markets are heading into a crucial trading week, with a flurry of domestic and international triggers likely to set the tone.

Any announcement on the tariff front, analysts warn, could have an immediate impact on trading sentiment, as markets react to potential disruptions in trade flows.

Source : ABPLIVE AI

The Indian stock markets began trading on Monday in red. The BSE Sensex crashed close to 250 points and stood at 81,214 , while the NSE Nifty tanked 70 points to trade at 24,764, as of 9:15 AM.

In the pre-open session, the Sensex declined more than 150 points and slipped under 81,300, while the Nifty fell over 50 points and stood below 24,800, as of 9:09 AM.

On the 30-share Sensex, Tata Motors, Bajaj Finserv, Tata Steel, UltraTech Cement, and ICICI Bank emerged among the gainers for the market, while the laggards in the morning included Kotak Mahindra Bank, Infosys, TCS, Bharti Airtel, and HCL Tech.

In the broader markets, the Nifty Bank led the losses and tanked 0.37 per cent in the opening hour. Sectorally, the Realty and IT indices dominated in red and plunged 1.27 per cent and 1.26 per cent respectively. Meanwhile, the Auto index gained 0.34 per cent.

India’s equity markets are heading into a crucial trading week, with a flurry of domestic and international triggers likely to set the tone. Market experts believe that a mix of heavyweight corporate earnings, foreign investor moves, and global policy decisions could create significant swings in sentiment.

Quarterly results from several large-cap companies are expected to dominate market conversations, with investors keen to assess corporate health before committing to new positions. At the same time, global developments are expected to play an equally important role. The US Federal Reserve’s upcoming interest rate decision remains a central focus, with traders looking for hints about the Fed’s stance in the months ahead.

Tariff Deadline Adds to Uncertainty

Adding to the complexity is the fast-approaching August 1 deadline for the suspension of Trump-era tariffs on dozens of nations, including India. Any announcement on the tariff front, analysts warn, could have an immediate impact on trading sentiment, as markets react to potential disruptions in trade flows.

Last week’s performance underscored the fragile mood. The BSE Sensex slipped by 294.64 points, or 0.36 per cent, while the NSE Nifty shed 131.4 points, or 0.52 per cent. The decline marked the fourth straight week of losses for the Nifty, its longest losing streak since October 2024.

Domestically, investors will track several macroeconomic indicators closely. The release of Industrial Production (IIP) and HSBC Manufacturing PMI data on August 1 is expected to provide critical insight into the strength of the economy. Monthly auto sales figures, due this week, will also offer cues on demand trends in the automotive sector.

Globally, markets will keep an eye on US GDP figures alongside the Fed’s decision, as any shift in foreign institutional investor (FII) flows could have an outsized impact on domestic equities in the days ahead.