Sensex, Nifty, Share Prices LIVE: The Indian stock markets opened on a cautious note this Monday morning, with the Nifty 50 falling 24.20 points or 0.10 per cent to 25,125.65 and the Sensex declining 112.40 points or 0.14 per cent to 82,388.07. This comes as concerns over potential US tariffs on India and weakness in technology stocks weighed on investor sentiment. However, despite the initial dip, experts believe that the Indian markets are resilient and have the potential to bounce back.
The latest weakness in the markets follows US President Donald Trump’s announcement of 30 per cent tariffs on the European Union and Mexico starting August 1. This has sparked fears of a potential 500 per cent tariff shock on India, leaving investors on edge. “While an interim US-India trade deal may soften tariffs below 20 per cent, markets remain edgy amid talk of a potential 500 per cent tariff shock on India,” said Prashanth Tapse, Senior Vice President (Research) at Mehta Equities Ltd.
Adding to the market’s subdued performance is the continued selling spree by Foreign Institutional Investors (FIIs). On July 11, FIIs offloaded equities worth ₹5,104 crore, contributing to the market’s downward trend. The cumulative FII selling in July has now reached a staggering ₹10,062 crore, further adding pressure to domestic indices. However, it is not all bad news, as Domestic Institutional Investors (DIIs) have provided some support by investing ₹3,558 crore.
Despite the current volatility in the markets, experts are optimistic about the long-term prospects of the Indian stock market. They believe that the Indian economy is strong and resilient enough to withstand any external shocks. The recent budget announcements by the government have also been well-received by the market, with measures to boost consumption and revive the economy.
Moreover, the Indian stock market has a history of bouncing back from challenging situations. In the past, it has weathered various global events and economic downturns, and has emerged stronger than ever. This resilience is a testament to the strength and potential of the Indian economy.
Investors should also take comfort in the fact that the Indian government is taking proactive steps to address the concerns over potential US tariffs. The Finance Ministry has already reached out to the US administration to seek clarity on the issue and negotiate a favourable outcome for India. This shows the government’s commitment to protecting the interests of the Indian economy and the stock market.
In conclusion, while the Indian stock market may be going through a rough patch at the moment, it is important to remember that this is just a temporary phase. The fundamentals of the Indian economy remain strong, and the government is taking necessary steps to address any external challenges. Investors should stay positive and continue to have faith in the Indian stock market, which has proven time and again its ability to bounce back and deliver long-term returns.
