The Indian stock market closed nearly flat on Monday as investors chose to stay on the sidelines, awaiting clarity on the interim trade deal between India and the United States. Uncertainty around the possible reimposition or relaxation of U.S. tariffs kept the trading range-bound, with no strong buying or selling trends throughout the day.
Key Market Highlights
- Sensex closed marginally higher at 83,409.68, up just 9.61 points (0.01%).
- Nifty ended the day at 25,461.30, up 0.30 points, showing virtually no change.
- The indices saw little volatility, with Sensex moving within a narrow band of around 120 points.
Top Performers and Laggards
- Among the Sensex gainers:
Hindustan Unilever, Adani Ports, Kotak Bank, Asian Paints, ITC, Power Grid, NTPC, Bharti Airtel, and Sun Pharma posted gains. - Declining stocks included major names like:
Mahindra & Mahindra, Tata Motors, Tata Steel, HDFC Bank, Bajaj Finance, L&T, TCS, SBI, and Infosys. - On the Nifty50, 22 stocks advanced, while 28 declined.
Why the Market Was Flat
Market analysts attribute the lackluster performance to:
- Ongoing uncertainty over the India-U.S. interim trade deal, especially as the 90-day tariff reprieve is nearing its end.
- Investor caution ahead of possible U.S. announcements on trade policy and tariffs.
- Expectations around upcoming U.S. Fed meeting minutes, which could influence the dollar and emerging market flows.
“Market participants appeared reluctant to take aggressive positions, keeping the broader index range-bound,” said Sundar Kewat, Analyst at Ashika Institutional Equity.
Sectoral Trends
- Positive sentiment was seen in:
- Consumer goods
- Oil & gas
- Consumption-related stocks
- Real estate
- Weakness was noted in:
- Media
- Metals
- Information technology (IT)
- Automobile stocks
Broader Market Performance
- Nifty Midcap 100 dropped by 0.27% (162 points).
- Nifty Smallcap 100 was down 0.44% (82.90 points).
- However, indices like Nifty FMCG and Nifty 100 managed to post gains.
Currency Market
- The Indian Rupee weakened by 0.47 to close at 85.87 against the U.S. dollar, reflecting broader dollar strength amid global trade uncertainties.
Outlook: What’s Next?
With no formal trade deal announced and the tariff extension window nearing its end, markets are expected to remain cautious. Analysts are also closely watching the release of the U.S. Fed meeting minutes, which could provide cues on interest rates and global capital flows.
