Tariff Tension and FPI Exit Rattle Indian Markets: What’s Dragging the Bulls? Here’s Everything You Need To Know

Why Did Indian Markets Stumble at the Open Today? Here’s What You Need to Know

Did you check the markets this morning and wonder, “Why is everything in the red?” You’re not alone. Indian stock markets opened Tuesday on a cautious, even gloomy note — and for good reason. The Nifty 50 slipped to 24,609.65, down 71.25 points or 0.29%, while the BSE Sensex dropped 270.77 points or 0.33% to 80,620.25.

So, what’s weighing on the bulls? Two things:

1. Relentless selling by foreign portfolio investors (FPIs) — July alone has seen over Rs 36,000 crore worth of FPI outflows.

2. Uncertainty around the India-US trade deal, which now looks delayed and could involve a 15% tariff — not exactly confidence-boosting.

Market expert Ajay Bagga sums it up:

“Indian markets are facing consistent FPI selling… the market is bipolar, with the primary market seeing strong interest, while promoter selling has crossed Rs 130,000 crore year-to-date.”

With no clear trigger to turn sentiment, investors are treading carefully. And while a technical bounce may be on the cards — thanks to oversold conditions — the real game-changer would be fresh FPI inflows or trade clarity. Until then, buckle up for a sideways ride.

Stock Market Reacted To Trade Delays And Tariff Fears

Wondering why the markets feel jittery? It’s the uncertainty around the India-US trade deal that’s spooking investors. With talks potentially delayed and fears of a 15% tariff looming, traders aren’t taking any chances. “There is no catalyst on the horizon,” warned Ajay Bagga, noting that even the best-case scenario includes a steep tariff. Global investors seem exhausted by the same old “Trump Tariff drama,” while Asian markets stay cautious ahead of the US-China talks in Stockholm. Back home, with no clear triggers and weak sentiment, investors are glued to charts, waiting for direction.

Sectoral Movers: Mixed Performance Snapshot

• Nifty IT: Down 0.36% – global tech weakness continues
• Nifty Auto: Up 0.06% – marginal gains
• Nifty FMCG: Up 0.22% – steady consumer demand
• Nifty Media: Up 0.34% – strong early buying
• Nifty Metal: Up 0.41% – sector outperformed
• Nifty Pharma: Up 0.19% – stable movement
• Nifty PSU Bank: Up 0.28% – positive momentum
• Nifty Realty: Up 0.20% – mild uptick
• Nifty Midcap 100: Up 0.11% – holding steady
• Nifty Smallcap: Down 0.04% – slight dip

Technical Levels Under Watch as Expiry Approaches

Technical analysts identified key levels for Nifty’s near-term trajectory. Akshay Chinchalkar of Axis Securities stated, “The Nifty finished 156 points down yesterday and ended below the crucial 24,700 mark. Technically speaking, the ongoing decline has the 24,400–500 support area in its sights as long as immediate resistance at 25,000 is not challenged. The real test for bulls will be at 24,200 should prices get there.” As July’s monthly expiry nears, the market entered its fifth consecutive week of weak sentiment, subdued positioning, and uninspiring earnings. Experts believe a technical bounce could emerge from oversold levels, but without a clear trigger, traders may need to “hunker down and wait for things to consolidate,” as Bagga described. The wait for a sustainable rally continues, with ten months passing since the last market high.

Earnings Watch and Global Signals Shape Market Mood

Investors looked forward to several key earnings reports from heavyweight companies including Larsen & Toubro, NTPC, Asian Paints, Varun Beverages, and more. Results from Piramal Enterprises, GE Vernova, and Bank of India also remained on the radar. Global cues added to the complexity, with Japan’s Nikkei 225 down 0.83%, Singapore’s Straits Times lower by 0.44%, Hong Kong’s Hang Seng losing 1.25%, and Taiwan’s index down 1.01%. South Korea’s KOSPI bucked the trend, rising 0.61%. The week’s focus remained on central bank signals, jobs data, and macroeconomic trends, keeping both bulls and bears guessing about the near-term direction. Traders watched closely for any positive shift in foreign flows or trade negotiations that could re-ignite confidence. 

(From ANI)

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