Mumbai, August 7 – Benchmark equity indices closed slightly higher on Wednesday, defying early-session weakness triggered by fresh global trade concerns. Investor sentiment remained fragile for most of the trading session, with renewed tariff rhetoric from former US President Donald Trump weighing on global risk appetite. However, a strong late-session rally, led by IT heavyweights, helped both Sensex and Nifty reverse losses and close in the green.
The BSE Sensex gained 79 points to settle at 80,623, while the NSE Nifty rose 22 points to close at 24,596, marking a marginally positive finish after an otherwise turbulent day.
Tariff Tensions, Policy Stance Shape Market Mood
The market’s early weakness mirrored investor anxiety over Trump’s latest tariff comments, which many see as a signal of rising protectionism ahead of the US elections. This development came just a day after Indian Prime Minister Narendra Modi reaffirmed his government’s strong stance on protecting farmers’ interests at the M.S. Swaminathan Centenary Conference.
With trade tensions once again surfacing and global investors watching India’s next move in ongoing negotiations with the US, the market finds itself at the intersection of policy and politics. Despite these headwinds, strong buying in the final 30 minutes of trade showed that investors remain selective but not fully risk-off.
IT, Healthcare Power Gains; Small-Caps Underperform
Sector-wise, IT stocks outperformed, buoyed by their defensive appeal and positive earnings outlook. Tech Mahindra surged over 1.6%, HCL Tech rose 1.1%, and Eternal gained nearly 1%, making them the top performers in the Sensex pack. Healthcare also saw moderate buying, with the sectoral index adding over 0.5%.
Meanwhile, broader markets remained mixed. The BSE Mid-Cap index rose 0.3%, but Small-Cap stocks dipped over 0.1%, indicating cautious investor interest in high-beta counters amid geopolitical uncertainty.
On the losing side, Adani Ports tumbled over 1.5%, followed by Trent (down 1%) and Tata Motors (down 0.8%), reflecting stock-specific pressures.
Sectoral Snapshot: Gains Narrow, Losers Broad-Based
Out of 21 sectoral indices on the BSE, 11 closed in positive territory. Besides IT and Healthcare, Focused IT gained 0.9%, showing continued investor confidence in tech-driven defensives.
In contrast, Telecom stocks declined 0.6%, while Capital Goods lost 0.4%. Commodities and Power sectors also faced selling pressure, each falling over 0.3%, possibly reflecting worries over cost-side inflation and regulatory risks.
Market Outlook: Volatility Ahead, But Fundamentals Strong
Analysts expect volatility to persist in the short term as investors weigh domestic political signals—particularly around agricultural policy—and external shocks such as tariff wars and US election posturing. However, India’s underlying growth story, strong corporate earnings in core sectors like IT and banking, and government focus on rural welfare continue to lend fundamental support to the market.
“With Modi reaffirming that farmer welfare remains the government’s top priority and global trade tensions resurging, markets are clearly entering a policy-sensitive phase,” said an equity strategist at a Mumbai-based brokerage. “Expect more stock-specific action and cautious positioning in coming weeks.”
