Sensex Falls to 83,190, Nifty at 25,355 as Market Drops for Second Day Amid US-India Trade Deal Uncertainty

Indian benchmark indices, the Sensex and Nifty 50, ended lower on Thursday, July 10 again extending its decline for a second consecutive session. The fall was due to investor caution ahead of the Q1 earnings season and uncertainty around a possible US-India trade deal.

The Sensex and Nifty ended the day with losses of nearly 0.5%. The BSE Sensex dropped 345.80 points or 0.41% to close at 83,190.28, while the Nifty fell 120.85 points or 0.47% to settle at 25,355.25.

Top Gainers and Losers:

Despite the weak market, some stocks managed to gain. Indusind Bank rose 1.56%, Maruti rore 1.40%, Tata Steel, Bajaj Finance were also among top Nifty gainers of the day.

On the flip side, Bharati Airtel fell almost 3%, followed by Asian Paints, HDFC Life, Apollo Hospitals and Shriram Finance were the Nifty losers today.

Nifty Bank dropped 258 points to 56,956, Midcap index fell 180 points to 59,160, while Nifty Midcap and Smallcap indices were down 0.3% each.

Almost all sectors ended in red except Realty, Metal and consumer durables. Nifty PSU Bank and IT were among the top losing sectors falling by almost 1%. Nifty Midcap 150 fall for the 5-day in a row.

Pharma and healthcare stocks led the losses, due to U.S. plans for a 200% tariff on drug imports.

What Moved the markets?

The drop came as investors awaited a possible US-India trade deal and the start of Q1 earnings, with TCS set to report later today putting pressure on the Indian stock market, affecting the main benchmark indices.

"Indian equities concluded the day in the red, weighed down by weakness in IT stocks ahead of TCS's Q1 results. Investor sentiment remains cautious ahead of the Q1 results in anticipation of a muted start to the season from the IT and finance sectors. However, the recent consolidation in the IT stocks largely factors in the muted outlook, limiting further worries.

Meanwhile, mid- and small-caps had limited negative action, reflecting a wait-and-watch approach amid rising expectation of a better earnings outlook compared to large caps," said Vinod Nair, head of research, Geojit Investments.

Technical Outlook:

"Nifty slipped lower following a breakdown from the congestion zone on the daily chart, reinforcing the prevailing bearish sentiment. Additionally, the index has moved below the 21-hour exponential moving average. The RSI (14) on the daily chart has also turned negative, indicating weakening momentum.

In the short term, the trend is likely to remain weak, which could lead to further downside. On the lower end, support is placed at 25,250-25,200, while on the higher end, resistance levels are seen at 25,400 and 25,500," according to Rupak De, senior technical analyst, LKP Securities.

"A long negative candle was formed on the daily chart, which indicates recent failed attempt of breakout of narrow range movement and the market is now placed near the lower range at 25300.

Nifty is currently nearing an important support zone of around 25300-25200 levels and there is a higher probability that one may expect sharp bounce back from the lower supports in the near term. However, immediate resistance is placed at 25550 levels, as per broader high low range movement," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Stock Market Highlights:

• Bharat Dynamics fell 4.7% after Motilal Oswal gave a 'neutral' rating due to high valuations. Metropolis Healthcare dropped 4% after profit booking from recent gains.
• Asian Paints slipped 2% after selling its stake in Akzo Nobel
• LIC lost 2% on weak insurance data and OFS reports.
• On the positive side, Glenmark Pharma rose over 5% after US FDA approval for its drug ISB 2001.
• Paytm jumped 4% ahead of its Q1 update, and Prestige Estates gained 3% following positive brokerage reviews.

Rupee VS Dollar:

The rupee closed 3 paise stronger against the US dollar at 85.65 on Thursday, July 10. It had closed at 85.68 on Wednesday.

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