Sensex, Nifty directionless as Sebi action on Jane Street, US-India trade impasse sours sentiment

Markets slip for the third day as SEBI cracks down on Jane Street

Indian benchmark indices, Sensex and Nifty, remained subdued with a slight negative bias during the afternoon trade on July 4, extending their losing streak to a third consecutive session. Markets continued to witness choppy movements, weighed down by a sell-off in capital market stocks following SEBI’s market-wide ban on global trading firm Jane Street.

Adding to the cautious sentiment was the ongoing India-US trade impasse, with the specter of 26 percent reciprocal tariffs looming as the July 9 deadline approaches, keeping traders on edge.

Around noon, the Sensex was down 183.08 points or 0.22 percent at 83,056.39, and the Nifty was down 56.10 points or 0.22 percent at 25,349.20. Market breadth stayed mixed with 1,850 stocks advancing, 1,515 declining, and 158 remaining unchanged on the BSE.

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On the sectoral front, the Bank Nifty index continued its downward trajectory, falling for a third straight day as financials presented a patchy picture in their Q1 business updates. Meanwhile, Nifty Pharma extended its impressive run, marking an 11th consecutive day of gains, while FMCG and Realty stocks eked out modest gains in intraday trade.

Notably, shares of capital market service providers such as BSE, Edelweiss Financial Services, Angel One, Central Depository Services (CDSL), and Motilal Oswal Financial Services declined by up to 6 percent, as investors weighed the impact of SEBI’s interim order against Jane Street and its affiliates on trading volumes. The July 3 order alleged index manipulation and barred Jane Street entities from accessing Indian securities markets until further notice.

Commenting on the market mood, Anil Rego, Founder of Right Horizons, noted: “Markets are taking a breather after a solid rally, which is expected. However, investor nerves are evident as they await clarity on corporate earnings growth and the outcome of the India-US trade negotiations — both of which could act as near-term triggers.”

Shrikant Chouhan, Head of Equity Research at Kotak Securities, added: “If Nifty breaks below 25,370, it could slide further towards 25,300–25,200. Conversely, a move above 25,500 may trigger an intraday rebound towards 25,600.”

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