Sensex, Nifty Dip in Early Trade as US Tariff Deadline and Weak Asian Markets Stir Caution

Indian benchmark indices Sensex and Nifty opened lower on Monday, reflecting investor caution ahead of the July 9 US tariff deadline, coupled with weak Asian market trends and persistent foreign fund outflows, according to PTI. The BSE Sensex fell 170.66 points to 83,262.23, while the NSE Nifty dropped 53.75 points to 25,407.25 in early trade.

The looming deadline marks the end of a 90-day suspension of Trump’s tariffs, which include a 26% duty on Indian goods entering the US, fueling market volatility. Concerns over a potential US-India trade deal and the fallout from SEBI’s report on Jane Street’s activities added to the uncertainty, said V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd. He noted that an interim trade agreement before July 9 could boost sentiment.

Major Sensex laggards included Bharat Electronics, Tech Mahindra, HCL Technologies, Eicher Motors, ICICI Bank, and Sun Pharma, while Trent, Asian Paints, Hindustan Unilever, Bajaj Finserv, and HDFC Bank posted gains. Asian markets were mixed, with Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng trading lower, though South Korea’s Kospi edged up. US markets closed higher on Friday.

Also Read: SEBI Bars Jane Street: Hedge Fund Body Urges Predictable Regulation to Sustain Market Confidence

Prashanth Tapse of Mehta Equities Ltd warned that the tariff deadline could drive further volatility. Foreign Institutional Investors offloaded ₹760.11 crore in equities on Friday, adding pressure. Global oil benchmark Brent crude fell 0.63% to $67.87 a barrel.

Also Read: Sebi Slaps Ban on Jane Street for Alleged Expiry-Day Index Rigging