New Delhi [India], July 28 (ANI): Indian equity benchmarks closed sharply lower on Monday, marking a weak start to the trading week as concerns mount over the unresolved India-US interim trade deal ahead of the August 1 deadline. The US administration signaled over the weekend that the deadline will not be extended, dampening investor sentiment.
The BSE Sensex dropped 572.07 points, or 0.70 percent, to settle at 80,891.02, while the NSE Nifty shed 156.10 points, or 0.63 percent, closing at 24,680.90.
Market weakness was broad-based, with realty, media, banking, metals, and consumer durables stocks leading the declines. The pharmaceutical sector stood out as a relative outperformer, offering some cushion amid the broader market fall.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the cautious market sentiment to multiple headwinds including underwhelming Q1 corporate earnings, uncertainty surrounding the India-US trade negotiations, and persistent foreign institutional investor (FII) outflows. “While global markets remain broadly positive on the back of stable US-EU trade relations, the Indian market continues to struggle with local issues,” Nair said.
Looking ahead, he noted that upcoming monetary policy decisions by the US Federal Reserve and the Bank of Japan, along with the trajectory of domestic earnings, will be key determinants for the markets.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, pointed out that the Nifty index ended in the red for a third consecutive session, reflecting sustained bearish undertones in the broader market.
Despite short-term volatility, India’s strong macroeconomic fundamentals, including a proactive Reserve Bank of India (RBI), robust monsoon conditions, and moderate inflation, continue to offer long-term support for the financial markets.
Over the past few years, Indian markets have shown resilience. In 2024 so far, both Sensex and Nifty have posted gains of around 9–10 percent. This follows gains of 16–17 percent in 2023 and a modest 3 percent in 2022.
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