Sensex, Nifty Edge Higher After Weak Start as India-US Trade Deal Hopes Build

Mumbai, July 8 – Indian equity markets opened on a tepid note Tuesday but soon reversed losses, with benchmark indices Sensex and Nifty trading marginally higher as optimism grew around an imminent India-US trade deal and Asian markets rallied.

After slipping in early trade, the BSE Sensex recovered to trade 86.13 points higher at 83,526.55, while the NSE Nifty rose 19.75 points to 25,481.05. Earlier, the Sensex had fallen 121.55 points to 83,320.95 and the Nifty had declined 37.15 points to 25,424.15.

Key Gainers and Laggards

Among the top gainers on the Sensex were

• Kotak Mahindra Bank
• Eternal
• Bharat Electronics Ltd
• Tata Motors
• NTPC
• Adani Ports

On the other hand, the key laggards were

• Titan
• Mahindra & Mahindra
• Sun Pharma
• HCL Tech
• Trent

Trade Deal Optimism Lifts Sentiment

Market sentiment improved after US President Donald Trump signalled progress on a trade deal with India, stating, “We’re close to making a deal with India.” His comments followed the US administration’s decision to impose tariffs on products from 14 countries, notably excluding India from the list.

The countries receiving tariff notices included Bangladesh, Cambodia, Indonesia, Japan, South Korea, and Thailand, among others. This strategic exclusion of India has been interpreted as a positive signal by investors, suggesting that a formal trade agreement with India may be imminent.

Broader Cues Support Recovery

A rebound in major Asian markets also contributed to the recovery. Benchmarks in South Korea, Japan, Shanghai, and Hong Kong traded in the green, lending support to domestic equities.

Additionally, Foreign Institutional Investors (FIIs) net bought shares worth Rs 321.16 crore on Monday, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 1,853.39 crore, according to exchange data.

Crude oil prices were also slightly lower, with Brent crude dipping 0.36% to USD 69.33 per barrel, offering some relief to energy-import dependent India.

Previous Session Wrap

On Monday, the Sensex closed just 9.61 points higher at 83,442.50, while the Nifty ended flat at 25,461.30, amid high volatility ahead of the tariff deadline and global uncertainty.

Investors are now closely watching for the official announcement and specifics of the India-US trade agreement, particularly its impact on sensitive sectors such as pharmaceuticals, which could influence further market direction.

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