Indian front-line indices ended Tuesday’s session with mild cuts, as continued weakness in Reliance Industries weighed on the market. However, a sharp rise in Eternal and marginal gains in banking heavyweights, including HDFC Bank and ICICI Bank, helped limit the losses.
Though the markets started with a healthy upside, tracking strong gains from Wall Street, they couldn’t sustain those levels due to weak support from select heavyweights, eventually dragging the Nifty 50 down to close with a cut of 0.12% at 25,060. The S&P BSE Sensex also closed with a mild 0.02% lower at 82,212 points.
Markets have remained in a tight range so far in July, largely with a negative bias, amid uncertainty over an interim trade deal between the US and India. According to market experts, if India doesn’t secure a favorable deal with tariffs below 20 percent, it would be a short-term negative from a market perspective.
Negotiations between India and the US are still underway, and recent reports indicate that both countries are unlikely to strike a deal before August 1, when the reciprocal tariffs announced by Donald Trump are expected to take effect. However, there is still a possibility of another extension of the pause on tariffs, as the US has so far finalized deals with only four countries.
Treasury Secretary Scott Bessent said on Monday that the administration prioritizes the quality of trade agreements over their timing. He noted that President Donald Trump would decide whether to extend the deadline for countries making productive progress with Washington.
