BIZ DESK
Domestic equity benchmarks concluded a volatile session on a flat note today July 7 as investor caution escalated following stern warnings from US Treasury Secretary Scott Bessent regarding impending tariffs. Bessent reiterated that tariffs would be enforced starting August 1 for countries that have not finalized trade agreements with the Trump administration, intensifying concerns about global trade disruptions. This comes as a critical July 9 deadline approaches for nations to secure deals, after an earlier 90-day pause on higher duties.
The BSE Sensex closed marginally higher at 83,442.50, up just 9.61 points or 0.01%, while the NSE Nifty50 settled steady at 25,461.30.
However, the broader market indices showed signs of weakness. The NSE MidCap 100 index slipped 0.27%, and the NSE SmallCap 100 index declined 0.44%, reflecting selective selling pressure.
Sector-wise, the Nifty FMCG index was the standout performer, rising 1.68%. Gains were led by major consumer staples stocks including Godrej Consumer Products, Dabur India, Hindustan Unilever, Emami, Britannia, and Varun Beverages. The Nifty Oil & Gas and Nifty Energy indices also closed in positive territory.
Conversely, sectors such as IT, Metals, Banking, Automobiles, Consumer Durables, and Pharmaceuticals saw declines. Leading the losses were Bharat Electronics, Tech Mahindra, Ultratech Cement, HCL Technologies, Maruti Suzuki, Infosys, Eternal Industries, and SBI, which dropped as much as 2.4%.
On the upside, heavyweight stocks like Hindustan Unilever, Kotak Mahindra Bank, Trent, Reliance Industries, Asian Paints, ITC, and Adani Ports advanced by up to 3%, helping to cap broader market losses.
Meanwhile, market volatility, as measured by the India VIX, edged higher by 1.99% to close at 12.56 points, signaling elevated investor uncertainty amid the tariff-related concerns.
Overall, markets remained cautious as investors weighed global trade developments against domestic sectoral trends.
The global trade landscape remains fraught with uncertainty. While the US has finalized trade agreements with the UK and Vietnam, and a temporary tariff reduction with China has been announced, many nations, including India, are still navigating complex negotiations. India is reportedly close to a “mini trade deal” with the US, though sources indicate “red lines” have been drawn on sensitive sectors like agriculture and dairy. Adding to the tension, President Trump has threatened an additional 10% tariff on countries aligning with the “anti-American policies” of the BRICS bloc, a group that includes India.
