Markets opened marginally lower on Wednesday morning, with the benchmark Sensex down 26.13 points (0.03 per cent) to 83,686.38 and the Nifty declining 7.40 points (0.03 per cent) to 25,515.10 as investors remained cautious ahead of key events including FOMC minutes and TCS earnings.
The flat opening comes as markets continue to grapple with uncertainty around US trade policies, with President Trump threatening 10 per cent tariffs on BRICS nations and warning of 100 per cent tariffs if they back a currency rival to the US dollar. During a cabinet meeting, Trump called for up to 200 per cent tariffs on pharmaceuticals and 50 per cent tariffs on copper products, drawing sharp responses from global leaders.
“The markets are largely ignoring the noise from the tariff front and are waiting for clarity to emerge,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “President Trump’s latest declarations… are all not taken seriously by the markets since Trump has a track record of chickening out and changing his announcements.”
Market participants are particularly focused on the upcoming FOMC minutes scheduled for release today and TCS earnings on July 10, which are expected to provide direction for the broader market. “With FOMC minutes (9 July) and TCS earnings (10 July) ahead, expect heightened volatility,” warned Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Among sectoral movements, consumer goods stocks led the gainers with Asian Paints rising 1.45 per cent to ₹2,520.60 and Hindustan Unilever advancing 1.03 per cent to ₹2,417.40. Trent gained 0.83 per cent to ₹5,485.00, while Jio Financial Services climbed 0.73 per cent to ₹331.25 and Shriram Finance added 0.70 per cent to ₹673.65.
Technology stocks faced selling pressure, with HCL Technologies declining 1.29 per cent to ₹1,686.10 and Wipro falling 0.83 per cent to ₹267.40. Metal stocks also remained under pressure as Tata Steel dropped 1.07 per cent to ₹160.23 and Hindalco lost 0.66 per cent to ₹681.05. Banking heavyweight ICICI Bank declined 0.76 per cent to ₹1,431.10.
The broader market sentiment remains cautiously optimistic despite the mixed global cues. “The market is in an uptrend position, showing no signs of reversal, but volatility is expected as crude, gold, and dollar prices may deviate due to the outcome of the US’s trade deal,” noted VLA Ambala, Co-Founder of Stock Market Today.
Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹26 crore on July 8, while Domestic Institutional Investors (DIIs) continued their buying spree, purchasing equities worth ₹1,366 crore on the same day. The India VIX, which measures market volatility, declined 2.91 per cent to 12.1950, indicating relatively stable market conditions.
From a technical perspective, the Nifty is expected to find support at 25,500, followed by 25,400 and 25,300. “On the higher side, 25,600 can be an immediate resistance, followed by 25,700 and 25,800,” said Hardik Matalia, Derivative Analyst at Choice Broking.
The derivatives market continues to face regulatory scrutiny, with SEBI highlighting that retail investors account for 91 per cent of total losses in the Equity Derivatives Segment. “The core issue remains the same as retail investors are often driven by greed rather than strategy,” commented Ajay Garg, CEO of SMC Global Securities.
Commodity markets showed mixed trends, with gold prices dropping below $3,300 as markets balanced US rate cut prospects with new trade risks. “Gold prices remain in a consolidation phase as U.S. President Donald Trump reaffirmed there would be no extension to the August 1 deadline for reciprocal tariffs,” said Aksha Kamboj, Vice President of India Bullion and Jewellers Association.
Crude oil prices extended gains to hit a 2-week high amid lower US crude oil production forecasts and fresh Houthi attacks in the Red Sea. “We expect crude oil prices to remain volatile in today’s session,” noted Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Banking stocks, which contribute nearly 24 per cent to the Nifty index, remain underperforming but could see potential upside in the upcoming weeks. The Bank Nifty is expected to find support at 57,200, followed by 57,000 and 56,800, with resistance at 57,400.
Looking ahead, market participants are adopting a cautious approach given the proximity to all-time highs and ongoing global uncertainties. “At this stage, traders should select their stocks carefully as the market is near an all-time high,” advised Ambala.
The cement sector is showing some green shoots, while midcaps are likely to continue with the earnings growth momentum from Q4 FY25. Banking names are expected to report better numbers in H2 FY26 rather than Q1, according to market analysts.
With the market trading in a narrow range, investors are looking for fresh triggers before the next significant move at the index level. The overall market structure remains constructive, with analysts recommending a ‘buy-on-dips’ approach as long as the index holds above the 25,300-25,000 level.
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Published on July 9, 2025
