Markets Remain Anxious Over US-India Trade Talks, Sensex, Nifty Reverse Gains And End In Red

The Indian stock market ended trading on a muted note today. After making massive gains in the first half of the session, both benchmark indices Sensex and Nifty slumped and took a hit.

The BSE Sensex ended trading at 83,384.61, tanking more than 300 points, while the NSE Nifty50 closed the day at 25,444, taking a plunge of almost 100 points. This decline completely erased the gains made after markets took cues from the macroeconomic data and global trade developments earlier in the day. Investors remained anxious as they awaited the conclusion of US-India trade talks and hoped for a deal at the end of the dialogue. Tensions were also escalated as the tariff deadline of US President Donald Trump nears and India remained optimistic to escape heavy tariffs from the Western superpower through a potential deal.

On the 30-share Sensex, Tata Steel, Asian Paints, UltraTech Cement, Trent, and Maruti ended the day among gainers. Meanwhile, the laggards included Bajaj Finserv, L&T, Bajaj Finance, HDFC Bank, and PowerGrid.

Broader Markets And Oil Prices

In the broader markets, it was a sea of red. The Nifty Financial Services index tanked 0.97 per cent, followed by the Bank index which slumped 0.80 per cent. Sectorally, the Realty and Financial Services Ex-Bank indices led the losses and crashed 1.44 per cent and 1.36 per cent respectively. On the other hand, the Metal and Consumer Durables indices dominated in green and jumped 1.41 per cent and 1.04 per cent respectively.

Vinod Nair, Head of Research, Geojit Investments Limited, noted, "Market attention is gradually shifting to crucial Q1 earnings, which have high expectations. Underlying trends such as robust macroeconomic fundamentals and increased government expenditure continue to support market resilience. However, being at the breach level of the recent rally, a cautiousness is expected to continue in the near term."

The global oil benchmark Brent crude surged 0.86 per cent to touch $67.69 a barrel. Foreign Institutional Investors (FIIs) dumped Indian equities worth Rs 1,970.14 crore on Tuesday, according to exchange data.

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Markets Opened Session On A Robust Note

Notably, markets began Wednesday's session on a strong footing, supported by growing optimism surrounding a potential trade agreement with the United States and robust buying interest in large-cap IT stocks. The BSE Sensex advanced 236.56 points in early trade, reaching 83,933.85, while the NSE Nifty rose by 66.3 points to 25,608.10.  Meanwhile, investor sentiment received an additional lift from encouraging macroeconomic data. According to the HSBC India Manufacturing Purchasing Managers' Index (PMI) released on Tuesday, the sector expanded to a 14-month high of 58.4 in June, improving from 57.6 in May. The surge was driven by stronger output, increased new orders, and a record rise in employment, the monthly survey revealed.

Adding to the positive domestic cues, India's gross GST revenue collection for June came in at over Rs 1.84 lakh crore—up 6.2 per cent year-on-year, though marginally lower than the Rs 2 lakh crore mark surpassed in the previous two months. A year ago, the figure stood at Rs 1.74 lakh crore.