Sensex down 300 pts, Nifty below 25,100 as IT stocks fall amid trade deal worries; India VIX up 3%

Foreign Portfolio Investors (FPIs) offloaded Indian equities worth Rs 5,104 crore on Friday, turning net sellers for the day.

Benchmark indices Nifty and Sensex started the week on a subdued note on July 14, as escalating global trade tensions rattled investor confidence. Sentiment soured after US President Donald Trump slapped 30 percent tariffs on the EU and Mexico, stoking fresh fears of a trade war. IT stocks bore the brunt of the early selloff, dragging the broader market lower.

At about 9:25 am, the Sensex was down 204.37 points or 0.25 percent at 82,296.10, and the Nifty was down 58.35 points or 0.23 percent at 25,091.50. About 1190 shares advanced, 1435 shares declined, and 181 shares remained unchanged.

"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. Additionally, a weak start to the Q1 earnings season—especially after IT major TCS reported below-par results—added pressure to the markets," Ajit Mishra, Senior Vice President at Religare Broking, said.

The market opened on a cautious note on Monday, July 14, with losses in IT, FMCG, and pharma stocks weighing on sentiment. Nifty IT was the biggest drag, falling 1.26 percent, while the FMCG and pharma indices slipped 0.07 percent and 0.27 percent, respectively. Media and private banks also edged lower in early trade. Meanwhile, gains in PSU banks, realty, energy, and auto stocks helped cap the downside. Volatility ticked up, with India VIX rising over 3 percent to 12.18, reflecting investor unease.

As for individual stocks, DMart shares slipped over 2 percent after the consumer player posted a nearly flat net profit for the June quarter of FY26, as rising competition and margin pressures offset strong revenue growth. Morgan Stanley, HSBC, JPMorgan, and Nuvama have dished out bearish ratings on the stock following the Q1.

Shares of Divis Laboratories fell 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 Ltd nosedived as much as 4 percent after the promoters, Dilip Piramal and family, entered into a definitive agreement with a group of sellers to offload 32 percent in the firm. Multiples Private Equity Fund IV, Multiples Private Equity Gift Fund IV, Samvibhag Securities Pvt. Ltd., along with Mithun and Siddhartha Sancheti, have collectively agreed to acquire a 32 percent stake in VIP Industries.

On the weekly chart, the index closed with a negative value, indicating a bearish structure and suggesting a likelihood of continued correction. Structurally, market breadth remains weak, with little conviction from bulls. The former support zone at 25,300 has now turned into resistance, and a follow-through breakdown below today’s low of 25,129 could further deteriorate the technical setup. Conversely, only a sustained move above 25,350 would attract buyers, marking this zone as a key resistance for any potential recovery.

IndusInd, Sun Pharma, Power Grid Corp, ONGC, and NTPC were the top gainers on the Nifty. Laggards on the index included Bajaj Finance, Infosys, Tech Mahindra, Bajaj Finserv, and Tata Motors.