Sensex and Nifty 50 closed lower amid mixed cues from the ongoing US-India trade talks
Domestic equity headline indices ended the session on July 2, 2025 in red as the uncertainty around global trade tariff policies weighed on investor sentiment. The Sensex closed 287.60 points, or 0.34 per cent, lower at 83,409.69. Likewise, the Nifty 50 closed lower at 25,453.40, down 88.40 points, or 0.35 per cent.
The broader market indices, too, mirrored the weak sentiment as the Nifty Midcap 100 and Nifty Smallcap 100 closed lower by 0.14 per cent and 0.41 per cent, respectively. Nifty 500, which represents more than 92 per cent of free-float market cap of all the companies listed on the National Stock Exchange (NSE), ended lower by 0.29 per cent. The Nifty Microcap 250, which tracks the top 250 companies beyond the Nifty 500 constituents, settled 0.16 per cent lower.
On the sectoral front, banks, financial services and realty sectors were under greater pressure, while metals, consumer durables, auto, pharma and IT sectors contributed in capping the losses.
From Sensex, Bajaj Finserv, Larsen & Toubro, Bajaj Finance, HDFC Bank, Bharat Electronics, Kotak Mahindra Bank were the top losers, while Tata Steel, Asian Paints, UltraTech Cement, Trent, Maruti Suzuki India, and Sun Pharma were the top gainers.
Among the Nifty 50 stocks, Shriram Finance, HDFC Life Insurance, IndusInd Bank, Bajaj Finserv, Larsen & Toubro, and Bajaj Finance were the top drags, while Tata Steel, JSW Steel, Asian Paints, UltraTech Cement, Maruti Suzuki India and Trent advanced the most.
Trade negotiations between India and the United States (US) are reportedly in their finals stages. The July 9 tariff-pause deadline is fast approaching and US President Donald Trump has expressed confidence that a deal between the US and India will be finalised soon, with "much less tariffs".
"I think we are going to have a deal with India. And it is going to be a different kind of deal. It will be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to change that, and if they do, we will have a deal with much lower tariffs," Trump told local reporters.
Meanwhile, amid ongoing trade negotiations, Republican Senator Lindsey Graham said in an interview on June 30 that Trump has given his approval to introduce a bill in the Senate that could impose tariffs of up to 500 per cent on countries maintaining close ties with Russia, particularly India and China.
While on one hand, Trump is saying the deal is progressing in a positive direction, one of his administration’s Senator is indicating otherwise. The led investors to assume a cautious stance and contribute to the weak sentiment.
US-India Trade Talks: Investors will be closely watching this space as new developments unfold.
Macroeconomic Data: Investors will also keep a track on key US economic data releases, including the ADP jobs report on July 2, and non-farm payrolls, unemployment rate, and services PMI on July 3. These macroeconomic data could offer fresh insights on the strength of the US economy.