Indian stocks under pressure as uncertainty prevails as August 1 tariff deadline nears; Sensex down over 500 points

New Delhi [India], July 28 (ANI): Equity benchmarks have settled substantially lower on Monday, kicking off the week on a dampening note.

The benchmark indices continued to face selling pressure at higher levels, with analysts indicating that the India-US new interim deal is unlikely to be finalised before the August 1 deadline. On Sunday, the US administration indicated that the August 1 deadline wouldn't be extended further.

Sensex closed at 80,891.02 points, down 572.07 points or 0.70 per cent, while Nifty closed at 24,680.90 points, down 156.10 points or 0.63 per cent.

Among sectors, pharma stocks provided some support with relative strength, while realty, media, banks, metals, and consumer durables were under pressure throughout the session.

Vinod Nair, Head of Research, Geojit Investments Limited, said domestic market sentiment has remained cautious, weighed down by a disappointing set of Q1 earnings, delays in the India-US trade agreement, and continued FII outflows.

"In contrast, global markets remain broadly positive, supported by US-EU trade developments that are perceived as less concerning than anticipated. The upcoming monetary policy decisions from the Fed and BoJ, along with the trajectory of domestic quarterly earnings, are expected to play a pivotal role in shaping market direction in the near term," Nair added.

According to Sudeep Shah, Head - Technical and Derivatives Research, SBI Securities, the stock indices the benchmark index Nifty closed in the red, reflecting persistent bearish sentiment across the broader market for the third straight trading session.

At a broader level, India's strong domestic fundamentals, a responsive RBI, and good monsoon conditions have been supporting the financial markets. A comfortable inflation number in India is another positive.

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each. (ANI)

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