Sensex down 250 pts, Nifty settles below 25,100 as trade tariff concerns loom; small, midcaps outperform

At close, the Sensex was down 247.01 points or 0.30 percent at 82,253.46, and the Nifty was down 67.55 points or 0.27 percent at 25,082.30

Benchmark indices Nifty and Sensex closed the session mildly in the red, after recovering some losses after a sharp recovery in all sectoral indices barring IT, which fell by over a percent on July 14. The broader market outperformed the frontline indices with gains of a percent, each.

At close, the Sensex was down 247.01 points or 0.30 percent at 82,253.46, and the Nifty was down 67.55 points or 0.27 percent at 25,082.30. About 1991 shares advanced, 2020 shares declined, and 151 shares unchanged.

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Experts say the sentiment weakened amid heightened global trade tensions following U.S. President Donald Trump’s renewed tariff threats on the EU and Mexico. Although there were expectations of an interim trade deal between the U.S. and India, the lack of clarity has kept risk appetite in check.

"We anticipate a consolidation phase in the index with a negative bias in the near term, following the recent fall. Volatility is expected to persist amid global uncertainties and the unfolding earnings season. Traders are advised to maintain a stock-specific approach, focusing on companies with strong earnings and relative strength," Ajit Mishra, Senior Vice President at Religare Broking said.

Sectoral indices on the NSE were largely positive in Monday's trade, with realty, media, and smallcap stocks leading the gains. Nifty Realty rose 1.44 percent, while Nifty Media and Nifty Smallcap 100 gained 1.39 percent and 1.05 percent, respectively. Consumer durables, midcaps, pharma, and PSU banks also posted healthy gains, rising between 0.7 and 0.88 percent.

Among other sectors, auto, FMCG, metal, energy, and oil & gas indices saw marginal upticks. On the downside, Nifty IT was the biggest laggard, falling 1.07 percent, while private banks and infra indices ended slightly in the red. Volatility edged higher, with India VIX up 1.10 percent at 11.95.

Read more: VIP Industries faced 'management crisis' over last few years, says promoter

Ola Electric shares stole the show with gains of 17 percent after the company forecast improved gross margins for fiscal 2026 after posting a narrower sequential loss for the first quarter, helped by stronger sales of its newer, more cost-efficient scooter models. The electric two-wheeler posted a consolidated net loss of Rs 428 crore in Q1FY26, narrowing it from Rs 870 crore in Q4FY25. However, the loss widened year-on-year (YOY) from Rs 347 crore in Q1FY25.

Shares of Divis Laboratories fell as much as 4 percent after a key legal setback over the weekend raised concerns about the company’s future revenue stream from one of its most important products. Indian drugmaker MSN has reportedly won a patent litigation battle involving Entresto, the blockbuster heart failure drug marketed by Novartis.

Shares of VIP Industries rebounded 8 percent to end over 5 percent higher after the company management said it is in a structurally good position to compete globally with a 'fantastic long-term future', promoter Dilip Piramal told CNBC-TV18 during an interaction on July 14.

From a technical perspective, Friday's candle had a long upper shadow and a close near the lows, and that's weak behavior. The area that lies between 25,000 and 25,127 is critical support from hereon, but bulls will have to both defend support and record at least one daily close above 25,340 to reverse the ongoing dip.

The market has closed below a short-term rising channel, so under 25,100, we might see a test of the 24,900 to 25,000 zone, where another channel is currently offering support. Today's cues from Asia are weak, and US index futures are down around 0.4 percent," Akshay Chinchalkar of Axis Securities said.

Eternal, Titan Company, IndusInd Bank, ONGC, and Adani Enterprises were the top gainers on the Nifty. Laggards on the index included Jio Financial Services, Tech Mahindra, Bajaj Finance, Asian Paints, and Infosys.

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