Sensex, Nifty flat as auto, pharma stocks fall on trade worries; small, midcaps underperform

Laggards in the index included Titan Company, Cipla, Dr Reddy's, Bajaj Auto, and Trent.

Indian markets slipped into the red on July 8, with Nifty and Sensex extending their lacklustre run as weakness in auto, pharma, and PSU bank stocks weighed on sentiment. The cautious mood on Dalal Street reflects growing anxiety over Donald Trump’s looming tariff salvo, set to hit imports from at least 14 countries starting August 1.

At 12:10 pm, the Sensex was up 41.16 points or 0.05 percent at 83,483.66, and the Nifty was down 2.75 points or 0.01 percent at 25,458.55. About 1,429 shares advanced, 2,006 shares declined, and 122 shares were unchanged.

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"Markets remain in a wait-and-watch mode ahead of trade deal updates and the start of the earnings season. That said, the underlying tone remains positive, supported by rotational buying in heavyweight stocks across sectors. Amid the ongoing consolidation, we maintain our bullish view and recommend continuing with a “buy on dips” approach, focusing on stock selection based on relative strength," Ajit Mishra, Senior Vice President at Religare Broking said.

Trump mentioned that the US is close to making a trade deal with India. Experts say that if the India-US trade deal is announced, Indian markets will experience a relief rally. Even if the deal's terms differ from initial market expectations, the simple removal of uncertainty around higher tariffs should drive this positive response.

Also read: BSE, other capital market stocks crash up to 7% as SEBI may link options leverage to cash exposure

Sectoral indices slipped on Tuesday, led by Nifty Consumer Durables (-2.16%), Pharma (-1.57%), Media (-1.11%) and Auto (-0.95%). Broader markets were weak, with Nifty Smallcap 100 down 0.80 percent and Midcap 100 falling 0.64 percent. Most other sectors, including Realty, PSU Bank, FMCG, Infra, and Energy, also traded lower. Nifty Bank edged up 0.28 percent, while India VIX dropped 2.47 percent to 12.25, indicating reduced market volatility.

As for individual stocks, Schloss Bangalore, the owner of the Leela Hotels chain, rallied as much as 5 percent after two global brokerages - BofA and Morgan Stanley - initiated coverage with bullish views, citing strong fundamentals and a promising growth outlook. This fresh optimism comes just over a month after Schloss Bangalore’s underwhelming market debut on June 2, when the stock listed at a 7 percent discount.

Indian pharma companies dropped up to 3 percent as US President Donald Trump reignited investor concerns after sending tariff letters to several countries. The sharp fall in the share prices pushed the Nifty Pharma index down over 1 percent. Pharma companies derive a major portion of their revenue from US exports. Hence, Trump's elevated tariffs will likely hamper their margins.

Read more: Auto stocks in red amid tariff uncertainty; Bajaj Auto, TVS Motor, Hero MotoCorp decline up to 2%

Kotak Mahindra Bank rose over 3 percent after it posted a stable performance in the June quarter business update. The private lender’s loan book expanded to Rs 4.45 lakh crore as of June 30, 2025, marking a 14 percent rise from Rs 3.90 lakh crore a year ago. On a sequential basis, advances were up 4.2 percent from Rs 4.27 lakh crore at the end of March.

Titan Company tanked 5 percent on July 8 despite recording a 20 percent growth in the consumer business for the quarter ended June 30, 2025. During the quarter, Titan saw a net addition of 10 stores, taking the total retail network to 3,322 stores. The domestic business grew 19 percent YoY, led by Watches at 23 percent and CaratLane at 38 percent.

"The Nifty ended flat after trading in a tight range. Technically speaking, after Friday's hammer candle, we have traced a "spinning top" formation yesterday. This means a great deal of indecision still prevails, but tactical bulls have to defend 25,331 on the way down. On the upside, 25,587 represents the first hurdle, followed by the swing high around 25,670. Asian cues are supportive, as the drop in US equities has failed to impact Asia on the downside," Akshay Chinchalkar, Head of Research at Axis Securities, said.

Kotak Mahindra Bank, Eternal, Bharat Electronics, Grasim, and NTPC were the top gainers on the Nifty. Laggards in the index included Titan Company, Cipla, Dr Reddy's, Bajaj Auto, and Trent.