Nifty, Sensex struggle for direction as investors await fresh cues; FMCG stocks outshine

Dalal Street extended its consolidation to another session of trade on July 7, 2025.

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26 Aug, 2025 12:21

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Domestic equity benchmarks Nifty 50 and Sensex recorded another listless session on July 7, as the directionless trade continued. Investors and analysts are gearing up for the upcoming earnings season for the quarter ended June 30, 2025 for fresh triggers. Further, Dalal Street is awaiting the trade deal between U.S. and India, ahead of the imposition of Trump's broad-based tariffs on August 1, 2025.

At close, the Sensex was up 9.61 points or 0.01 percent at 83,442.50, and the Nifty was up 0.30 points or 0.00 percent at 25,461.30. About 1617 shares advanced, 2294 shares declined, and 182 shares unchanged.

"Market participants appeared reluctant to take aggressive positions, keeping the broader index range-bound. The sentiment was further dampened by global uncertainty, prompting a defensive approach across key sectors," noted Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity.

Compared to the benchmarks, the broader markets saw mild selling pressure. The Nifty Midcap 100 and Nifty Smallcap 100 sank 0.2 percent and 0.3 percent, respectively.

On the sectoral front, the FMCG pack bucked the trend to jump over one percent. Positive business updates from consumer goods majors such as Dabur India and Godrej Consumer Products supported the sentiment. Further, Nifty Oil & Gas and Nifty Realty recorded gains.

Nifty IT, Nifty Media, and Nifty Metal indices were in the red, sinking over 50 basis points, as investors turned cautious on these stocks.

For the earnings show in the first quarter, domestic brokerage Motilal Oswal is pencilling in a 10 percent YoY growth. This estimate is skewed by a sharp 42 percent YoY growth in the O&G sector, and excluding global commodities, the growth rate will still be a modest six percent.

However, the key highlight of the quarter is anticipated to be the better sectoral breadth of earnings growth. Multiple sectors are expected to post double digit PAT growth in 1QFY26, such as Capital Goods (+12 percent), Cement (+35 percent), Chemicals (+10 percent), EMS (+46 percent), Logistics (+20 percent), Healthcare (+11 percent), Real Estate (+40 percent), Retail (+23 percent), Staffing (+11 percent), Telecom (Loss to Profit), and Utilities (+12 percent).

"While Indian equity market has risen over the past few months based on these expectations, it has still experienced both time and price corrections from the highs reached in September 2024. Hence, we remain constructive about Indian equities and view India as one of the unique markets that offers an uncommon trifecta of size, growth, and diversification – a theme we have been highlighting," said Motilal Oswal.

On the technical front, the immediate support is placed at 25,400, followed by a stronger support zone near 25,300. On the upside, 25,500 now acts as the immediate resistance, with a key hurdle seen near 25,600, said Hardik Matalia, Derivative Analyst, Choice Broking.

"A decisive break above this zone could pave the way for a move towards a new all-time high. Overall, the structure remains positive, and a ‘buy-on-dips’ strategy is advisable as long as the index holds above the 25,000 level. Traders should remain vigilant and use strict stop-losses to manage risks amid rising intraday volatility," he added.