New Delhi – Indian stock markets extended losses on Wednesday, dragged down by profit booking and concerns over the July 9 deadline for reciprocal tariffs imposed by the Trump-era U.S. trade policy. Investors are treading cautiously amid global uncertainties and lacklustre cues.
The benchmark Sensex dropped 288 points, while the Nifty declined by 88 points, with both indices witnessing selling pressure at higher levels.
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, “Profit booking emerged at elevated levels after a steady rally. Technically, the market has faced consistent selling pressure after a subdued opening.”
Among the sectoral indices, the Metal index stood out with a 1.41% gain, while the Realty index suffered the most, falling 1.44%.
Vikram Kasat, Head of Advisory at PL Capital, attributed Wednesday’s fall to caution over U.S. trade developments and weak global sentiment. “Markets remain on edge due to uncertainty surrounding U.S. tariffs and the Federal Reserve’s policy stance. Domestic optimism is largely limited to sectors like metals, consumer durables, and select IPOs,” he said.
Vinod Nair, Head of Research at Geojit Financial Services, added that mixed global cues ahead of the tariff decision were driving investor caution. “Attention is now shifting towards the Q1 earnings season, where expectations are high. While macro fundamentals and government spending offer support, the markets are at a tipping point after the recent rally, which could prompt continued caution,” he said.
Just last week, Indian markets had posted gains for the fourth consecutive session, buoyed by stable global cues, easing geopolitical tensions between Israel and Iran, and speculation about a possible U.S. tariff deadline extension.
India‘s strong domestic backdrop—including supportive RBI policy, a favourable monsoon, and controlled inflation—has kept investor sentiment relatively positive. A weakening U.S. dollar and record highs in American equity markets have further bolstered emerging market appeal.
So far in 2024, the Sensex and Nifty have gained around 9–10%, following strong double-digit returns of 16–17% in 2023. This marks a contrast from the modest 3% growth recorded in 2022.
