Stock market settles in flat zone as Aug 1 US tariff deadline looms

Mumbai, July 22 The Indian stock market closed almost flat on Tuesday following mixed reactions, as investors await more clarity on the interim US-India trade deal ahead of the August 1 deadline.

The recent movement in the domestic market also reflects the caution, with many investors opting to book profits amid ongoing quarterly result volatility.

Sensex settled at 82,186.81, falling 0.02 per cent or 13.53 points. The 30-share index started the session in green at 82,527.27 as compared to last day's closing of 82,200. However, the stock remained range-bound amid selling in heavyweights like Reliance, SBI, Tata Motors and L&T.

Nifty closed at 25,060.90, down 29.80 or 0.12 per cent.

The market is experiencing volatility fuelled by quarterly earnings updates. But broader sentiment remains mixed as Participants react to company-specific numbers and await further clarity from global factors, like ongoing US trade negotiations, according to Ashika Institutional Equities.

Tata Motors, Reliance, SBI, ITC, Ultratech Cement, L&T Infosys, HCL Tech and Sun Pharma were settled in negative territory from the Sensex basket. While Eternal, Titan, BEL, Hindustan Unilever, Maruti, and Mahindra and Mahindra were the top gainers from the 30-share index.

Meanwhile, 33 shares declined, 16 advanced, and 1 remained unchanged from Nifty50.

Among sectoral indices, Bank Nifty, Nifty FMCG, and Nifty IT ended the session in red. Nifty Financial Services closed flat.

Broader indices followed suit as well. Nifty Midcap 100 closed 364 points or 0.61 per cent lower, Nifty 100 fell 41 points, and Nifty Smallcap 100 settled 64 points or 0.34 per cent lower.

Rupee traded lower by 0.08 per cent at 86.36 as domestic capital markets remained weak and the dollar index held flat to slightly positive near 97.86.

“Market participants now shift focus to Fed Chair Powell’s upcoming speech, which could influence global currency sentiment. Rupee is expected to remain within a range of Rs 85.75–Rs 86.60," said Jateen Trivedi of LKP Securities.

The market's attention is on quarterly earnings, which slowed lately after some traction from banking stocks. Positivity noticed on Friday and Monday tapered ahead of the critical August 1st deadline of the US trade agreement.

“Upside in Q1 earnings will be the critical point to sustain the current premium valuations. Continued profit booking by the FIIs exerts downward pressure, while steady inflows from DIIs could support a range-bound movement with a positive bias towards Q1 results and the trade deal,” said Vinod Nair, Head of Research, Geojit Investments Limited.

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