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Sensex slips while Nifty edges higher as investors stay cautious ahead of U.S. tariff deadline

The Indian stock market remains volatile on Friday as investors closely monitor global developments, particularly the looming deadline related to U.S. President Donald Trump's proposed tariffs. The atmosphere in the market reflects caution, with mixed movements seen across major indices and sectors. 

At the moment, the BSE Sensex trades at 83,059.67, down by 179.8 points or 0.22%, while the Nifty 50 stands at 25,350.15, up 55 points or 0.21%. This divergence highlights selective buying in key sectors even as broader uncertainty keeps market participants on edge. 

Selective Gains in Financials and FMCG Stocks 

A few heavyweight stocks are helping support the Nifty’s gains today. Bajaj Finance continues to outperform, gaining on strong credit demand and stable financial metrics. Bharat Electronics moves higher as defence-related counters benefit from policy optimism and solid order books. 

The Bajaj Twins — Bajaj Finance and Bajaj Finserv — extend their positive momentum, supported by investor confidence in their earnings potential. Hindustan Unilever also adds strength to the index, backed by strong demand in rural and semi-urban markets. Meanwhile, Eternal sees positive action, likely driven by upcoming results and business growth expectations. 

Pressure in Metals, Auto, and Pharma Stocks 

On the other hand, several key stocks drag the Sensex lower. Trent faces sharp selling pressure amid concerns about high valuations and muted consumer sentiment. Tech Mahindra trades in the red, likely due to global IT demand uncertainty. Tata Steel and JSW Steel also face selling pressure as metal prices ease globally. 

In the auto pack, Maruti Suzuki and Mahindra & Mahindra continue to trade weak, with investors reacting to slower volume growth and rising cost pressures. Asian Paints is under pressure as input costs weigh on margins. Sun Pharma also trades lower, amid concerns over U.S. regulatory risks and margin pressures in the domestic market. 

Broader Market Underperforms 

The broader markets remain subdued, with mid- and small-cap stocks failing to match the resilience seen in some large-cap names. The Nifty Midcap 100 and Smallcap 100 indices are both down by 0.36%, reflecting a risk-off sentiment in these segments. 

Profit-taking is visible in several high-flying small-cap counters as investors rotate funds back to safer, more liquid large-cap names amid global uncertainty. 

Sectoral Indices Trade Mixed 

The market is seeing a mixed trend across various sectors: 

Nifty Metal is the top laggard, down 0.8%, as global commodity prices slip and demand forecasts weaken. 

Nifty Auto trades in negative territory due to muted June sales and cost-related headwinds. 

Nifty Bank remains marginally lower as private lenders see profit-booking after recent gains. 

Nifty Consumer Durables also shows minor weakness amid tepid demand in the premium goods segment. 

Meanwhile: 

Nifty FMCG trades higher, supported by consistent consumer demand and stable margins. 

Nifty IT gains slightly as investors look for defensive plays in a volatile environment. 

Nifty Pharma remains firm, with expectations of new drug approvals and rising export orders. 

Nifty Realty and Oil & Gas also show strength, backed by steady demand and firm global crude oil prices. 

Market Sentiment Tied to US Tariff Decision 

Market sentiment remains cautious ahead of the July 9 deadline for the potential reimposition of US tariffs under the Trump administration. Investors worry that any decision in this regard could disrupt global trade flows and impact Indian exporters, particularly in the auto, metal, and chemical segments. 

Foreign Institutional Investors (FIIs) are seen reducing exposure in cyclicals like autos and metals, while Domestic Institutional Investors (DIIs) continue to buy into defensives such as IT, FMCG, and pharma stocks. 

Currency and Commodity Markets 

The Indian rupee trades slightly weaker against the US dollar amid cautious global risk sentiment and higher oil prices. Brent Crude remains near $88 per barrel, supported by OPEC+ supply cuts and geopolitical tensions. 

Gold prices are firm, gaining on safe-haven demand as traders brace for potential trade policy changes from the United States. Commodities as a whole remain in focus, with volatility expected to stay high in the coming sessions. 

Global Market Snapshot 

International markets are mixed. Asian equities show a mixed trend, with Japan and South Korea trading lower while China and Hong Kong post marginal gains. European markets open on a soft note, following weak manufacturing data and lingering concerns over global trade disruptions. 

US futures trade slightly higher, with investors awaiting fresh economic indicators that may influence the Federal Reserve’s policy outlook. 

Technical Levels to Watch 

Technical analysts observe that the Nifty faces resistance near 25,500, while immediate support is placed at 25,200. A decisive move beyond these levels may define the near-term direction. 

For the Sensex, watch for support around 82,800, while resistance remains capped at 83,400–83,600. Any breach in either direction could lead to increased volatility going into next week. 

Earnings Season Ahead 

The upcoming Q1 earnings season is likely to shape investor decisions further. Several major companies across the banking, auto, and FMCG sectors are set to release their financial results over the next two weeks. Early signals will be crucial in determining sector rotation and stock-specific movement. 

Positive results could offer fresh triggers for the markets to break out of the current range. On the other hand, disappointing numbers may result in increased selling pressure, particularly in overvalued segments. 

Cautious Optimism as Key Events Approach 

As of now, Indian equity markets are trading in a cautious but balanced manner. While headline indices show mixed performance, underlying sentiment remains sensitive to global developments, particularly the upcoming US tariff decision and corporate earnings. 

Investors stay focused on large-cap defensives and stocks with strong fundamentals while trimming positions in cyclicals and high-beta counters. Volatility may increase in the coming sessions as critical triggers unfold, both globally and domestically.