The Indian stock market began Monday’s trading session on a muted note.
At around 9:28 am, the Sensex fell by 75.59 points, or 0.09%, to 83,357.30, while the Nifty declined 18.25 points, or 0.07%, to 25,442.75.
Early losses were observed across several sectors including metal, auto, IT, PSU banks, pharmaceuticals, and financial services.
Analysts pointed to mixed global signals and regulatory developments as the reasons behind the subdued start.
US-India trade deal and regulatory concerns
Market experts suggested that discussions surrounding a possible interim US-India trade deal before the July 9 tariff deadline are being closely watched.
A breakthrough could serve as a positive catalyst.
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “Regulatory action involving Jane Street and its implications are under market scrutiny. Though the impact on derivative volumes could affect exchanges and brokerages in the short term, it is unlikely to hurt long-term prospects.”
Sectoral and midcap movements
The Nifty Bank index was down 50.95 points or 0.09% at 56,980.95. The Nifty Midcap 100 slipped by 8.20 points to 59,669.55, while the Nifty Smallcap 100 declined by 7.60 points to 19,025.45.
Among Sensex stocks, top losers included BEL, Tech Mahindra, Titan, Bajaj Finance, HCL Tech, SBI, Tata Steel and ICICI Bank.
On the other hand, gainers were Trent, Hindustan Unilever, Bajaj Finserv, Asian Paints and HDFC Bank.
Institutional selling and global indicators
Foreign Institutional Investors (FIIs) sold equities worth ₹760.11 crore on July 4, continuing their five-day selling streak.
Domestic Institutional Investors (DIIs) also remained net sellers, offloading ₹1,028.84 crore worth of shares.
Across Asia, markets showed a mixed trend.
Bangkok, Hong Kong, Japan, China, and Jakarta traded in red, while only Seoul remained positive.
In the previous session on Thursday, the US markets ended on a strong note, with the Dow Jones rising by 344.11 points, or 0.77%, to 44,828.53.
The S&P 500 gained 0.83%, closing at 6,279.35, and the Nasdaq climbed 1.02% to settle at 20,601.10.
Future market outlook
While short-term volatility may persist due to global cues and domestic regulatory developments, analysts believe that structural fundamentals remain intact.
Investors are advised to watch developments in the US-India trade talks and further regulatory updates from SEBI, both of which could influence market direction in the coming days.
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