Indian stocks started the week on a cautious upbeat note, bouncing back slightly from last week’s sharp drop. Investors remain jittery over U.S. President Donald Trump’s proposed tariffs on pharmaceuticals, which could hit India’s export sector hard.
The Nifty 50 index climbed to 24,728.55 at the open, up 73.85 points or 0.30%. Meanwhile, the BSE Sensex rose to 80,588.77, gaining 162.31 points or 0.20%. This modest recovery comes after a tough week that saw both benchmarks fall amid global worries.
Market watchers point to a busy week ahead in India’s primary markets, with a flurry of IPOs launching and several companies set to debut on the exchanges. That said, they warn that selling pressure might linger in the secondary markets, particularly for IT stocks facing headwinds.
Banking and market expert Ajay Bagga shared his take: “Asian markets look subdued this morning, with eyes on the RBI and RBA interest rate decisions. Tomorrow brings the monthly expiry for Indian derivatives on the NSE, so we’ll watch FPI rollovers closely—especially their huge short positions. India’s primary markets feel like they’re in their own bubble, with 21 new IPOs opening this week and 26 listings on deck. Block deals and offer-for-sale activities are draining liquidity from secondary markets, just like the IPO rush. The IT sector takes another hit after Accenture’s results and news of thousands of job cuts.”
Broader indices showed similar gains: The Nifty 100 rose 0.23%, Nifty Smallcap 100 climbed 0.33%, and Nifty Midcap 100 advanced 0.42%.
Most sectors opened higher, except Nifty FMCG, which stayed flat. Nifty Auto led with a 0.54% jump, followed by Nifty PSU Bank at 0.53%, Nifty Metal at 0.47%, Nifty Pharma at 0.45%, Nifty Media at 0.45%, and Nifty IT at 0.33%.
On the global stage, U.S. stocks wrapped up last week in the red, with major indexes dropping 0.2% to 0.8%. Traders took profits from the AI-fueled rally, and the market’s heavy reliance on a few big tech names amplified the downturn. Still, upbeat U.S. data offered some relief: Second-quarter GDP got revised up to 3.8%, and the PCE inflation gauge came in mild, showing tariffs haven’t yet slowed growth or sparked high inflation.
But risks loom, including a potential U.S. government shutdown by month’s end over political gridlock, which could lead to unexpected fallout.
Technically, Sudeep Shah, head of technical and derivatives research at SBI Securities, flags trouble for Nifty IT. “It plunged nearly 8% last week, breaking a key horizontal trendline on the daily chart and dipping below its 200-week EMA,” Shah said. “The weekly and daily RSI readings have fallen under 40, signaling more short-term weakness. We also see potential underperformance in Nifty Pharma, Healthcare, Consumer Durables, Financial Services, Capital Markets, India Tourism, FMCG, and Media.”
Across Asia, results were mixed. Japan’s Nikkei 225 fell 0.95%, but Hong Kong’s Hang Seng surged over 1%, South Korea’s KOSPI rose 1.24%, and Singapore’s Straits Times edged up 0.18%.
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