Indian stocks settle in green on Friday, but log weekly losses amid US trade deal uncertainty

New Delhi [India], July 4 : Keeping the intraday gains intact, Indian stock indices settled in the green on Friday, despite continued foreign portfolio investor (FPI) outflows.

This marks the first jump in the domestic indices after multiple sessions of losses.

The Sensex closed at 83,432.89 points, up 193.42 points or 0.23 per cent. The Nifty closed at 25,461.00 points, up 55.70 points or 0.22 per cent. Sensex and Nifty on a cumulative basis declined 0.4-0.7 per cent during this week.

Among the sectoral indices, Nifty FMCG, Nifty IT, Nifty media, Nifty pharma, Nifty PSU bank, Nifty realty, Nifty oil and gas were the top movers, while Nifty metal and Nifty auto were the top losers, NSE data showed.

"The Indian market is experiencing a pause as investors adopt a wait-and-watch strategy ahead of the impending US tariff deadline, with mixed global cues. Ongoing FII outflows reflect a risk-off approach, while DII inflows are offering partial support," said Vinod Nair, Head of Research, Geojit Investments Limited.

"Following the recent rally, main indices are hovering near peak valuation levels, limiting further upside, which is highly dependent on Q1 earnings and details of the trade deal. In the mid- and small-cap space, the market has shifted to being more stock-specific following the recent recovery," Nair added.

Barring Friday, India's stock benchmarks remained in the red this week, which analysts attribute to profit booking by investors.

"After 5 straight sessions of losses, the market remained in a consolidation phase as investors stayed on the sidelines ahead of the July 9 deadline set by U.S. President Donald Trump for trade tariff negotiations," said Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity - Ashika Stock Broking part of Ashika Group.

Analysts earlier opined uncertainties around extension in Trump reciprocal tariffs beyond July 9, and an India-US bilateral trade agreement weighed on the Indian stock indices this week.

Last week, Indian stock indices stayed in the green for the fourth straight session, lending support from positive global cues, relative peace on the Israel-Iran conflict front, and hopes of a possible extension of the July 9 tariff deadline by the US administration.

At a broader level, India's strong domestic fundamentals, a responsive RBI, and good monsoon conditions have been supporting the financial markets. US markets are hitting all-time highs, and the US dollar is weakening; as a result, emerging markets like India are benefiting. A comfortable inflation number in India is another positive.

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each.

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