Sensex down 150 pts, Nifty below 25,150 as auto, metal stocks fall; small, midcaps rise for 3rd day

Laggards on the index included Shriram Finance, Tata Steel, M&M, Cipla, and JSW Steel.

Benchmark indices Nifty and Sensex were off to a weak start on July 16 as sentiment soured after US President Donald Trump threatened fresh tariffs on pharmaceuticals and semiconductors. The delay in the India-US trade deal has added to the pressure in the recent sessions, dragging down investor confidence. Auto and metal stocks were the major drags, while the broader market gained marginally.

At about 9:30 am, the Sensex was down 117.59 points or 0.14 percent at 82,453.32, and the Nifty was down 45.25 points or 0.18 percent at 25,150.55. About 1655 shares advanced, 751 shares declined, and 147 shares remained unchanged.

"The inflation increase, partly attributed to Trump's tariffs, has also dampened sentiment and has put imminent pressure on Fed to decide if rates are to be slashed," Devarsh Vakil, Head of Prime Research at HDFC Securities said. Experts also add that tariff letters issued by Donald Trump to countries has also added to anxiety.

Markets opened on a mixed note Wednesday, with sectoral indices showing a largely range-bound trend. The India VIX edged up 1.05 percent to 11.60, indicating a slight rise in volatility. Among sectoral movers, Nifty PSU Bank rose 0.42 percent. Nifty IT, Consumer Durables, and Midcap 100 also posted modest gains. On the flip side, Nifty Auto slipped 0.75 percent, while Metal and Infra indices saw marginal declines. Nifty FMCG, Oil & Gas, Realty, and Private Bank indices were largely flat in early trade.

Among individual stocks, Dixon Technologies rose over 3 percent after it signed a binding term sheet to acquire a majority 51 percent stake in Kunshan Q Tech Microelectronics (India) Pvt. Ltd. The move, part of a mix of primary and secondary investments, will give Dixon access to advanced technology and precision manufacturing in camera and fingerprint modules — key components used in smartphones, IoT devices, and automobiles.

Multiplex operator PVR INOX Ltd slipped over a percent on Wednesday, July 16, after the Karnataka government proposed a cap on movie ticket prices at Rs 200 each. The rule would be applied across theatres in Karnataka, from single-screen operators to large-scale multiplexes. Further, it would include all entertainment taxes. According to the draft, the public has around 15 days to respond to the proposal. PVR INOX is yet to officially respond.

HDFC Life gained 2 percent after the private insurer posted stable June quarter performance. Brokerages were bullish on the counter and projected up to 20 percent potential upside from here on. HSBC shared a "buy" call for HDFC Life and shared a target price of Rs 900 per share. Morgan Stanley also shared an "overweight" rating for HDFC Life with a target price of Rs 840 per share.

A reasonable positive candle was formed on the daily chart with a minor upper shadow. Technically, this market action indicates an attempt to bounce back from near the lower support levels of around 25,000. Further sustainable upside from here could confirm the short-term bottom reversal pattern for the market. The bounce back of Tuesday could be a cheering factor for the bulls to make a comeback. A sustainable move above the immediate resistance of 25350 could open more upside in the near term. Immediate support is placed at the 25,000 levels.

Trent, HDFC Life, Tech Mahindra, SBI Life Insurance, and HDFC Bank were the top gainers on the Nifty. Laggards on the index included Shriram Finance, Tata Steel, M&M, Cipla, and JSW Steel.