Sensex slips 100 pts, Nifty below 25,500 amid trade deal worries; FMCG, oil & gas stocks buck trend

Trent, Asian Paints, HDFC Life Insurance, HUL, and Tata Consumer Products were the top gainers on the Nifty.

Benchmark indices Nifty and Sensex opened the session on a flat-to-negative note on July 7 as investors weighed the prospects of an India-US trade deal and monitored simmering geopolitical tensions in the Middle East. Oil & gas and FMCG stocks rose, while the broader market edged lower.

At about 9:20 am,  the Sensex was down 106.48 points or 0.13 percent at 83,326.41, and the Nifty was down 30.10 points or 0.12 percent at 25,430.90. About 1220 shares advanced, 1442 shares declined, and 192 shares unchanged.

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"Concerns around potential U.S. trade retaliation created doubts about the timely finalization of trade agreements with major economies, including India, are keeping investors in wait and watch mode," Ajit Mishra of Religare Broking said. "However, the downside remained limited following reports of a likely interim deal between India and the U.S. ahead of the scheduled deadline," he added.

Given the fluid global environment—especially concerning U.S. trade policy—investors should prepare for continued volatility. Investors will also turn their attention to Q1 earnings with TCS and DMart declaring results later this month.

Also read: Donald Trump threatens 'ADDITIONAL 10% tariff' for any country aligning with 'Anti-American BRICS'

Sectoral indices traded mostly in the red on Monday, with India VIX rising 2.84 percent to 12.67, reflecting a slight uptick in market volatility. Among the losers, Nifty Metal (-0.38%), Nifty IT (-0.36%), and Nifty Smallcap 100 (-0.25%). Nifty Auto, Bank, Consumer Durables, and Realty indices also opened lower, declining between 0.12 and 0.17 percent. The broader Nifty Midcap 100 shed 0.15 percent. On the positive side, Nifty FMCG rose 0.47 percent, while Nifty Oil & Gas and Nifty Energy edged up 0.45 percent and 0.01 percent, respectively.

The Nifty index saw a recovery in the latter half of Friday’s session, rebounding from around the 25,330 mark to close in the green near 25,450. The improving bias suggests potential for further upside in the coming sessions. Key support remains in the 25,250–25,300 zone, while a sustained move higher could open the door to targets of 25,700 and 26,200.

Shares of FSN E-Commerce Ventures Ltd., the parent of Nykaa, rose 2 percent on Monday, July 7, after it shared a business update for the first quarter that suggests stable growth momentum, even as external headwinds weighed on sales events. The company expects its consolidated revenue to grow at the lower end of the mid-20 percent range in Q1, while overall GMV growth is projected to surpass that, continuing its multi-quarter run of solid performance.

Read more: Nations chase US trade deals as US treasury secretary Bessent hints at extension

Shares of Tata Group's apparel giant Trent gained 1 percent after Bernstein maintained an Outperform rating on the counter. The brokerage noted that the company's Q1 update confirmed a 20 percent year-on-year revenue growth, but believes this should not be seen as the new normal, and could rise further.

IndusInd Bank Ltd shares edged lower after reporting its business update for the first quarter of FY2026. As of June 30, 2025, the bank’s net advances stood at Rs 3,34,477 crore, reflecting a decline of 3.9 percent year-on-year from Rs 3,47,898 crore and 3.1 percent quarter-on-quarter from Rs 3,45,019 crore. Deposits were recorded at Rs 3,97,233 crore, down 0.3 percent from Rs 3,98,513 crore, recorded during the same period last year.

Trent, Asian Paints, HDFC Life Insurance, HUL, and Tata Consumer Products were the top gainers on the Nifty. Laggards on the index included Bharat Electronics, HCL Tech, Tech Mahindra, Eternal, and Hindalco.

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