Benchmark indices opened marginally higher on Wednesday morning before paring gains, with the Sensex opening at 81,594.52, above its previous close of 81,337.95, and easing to 81,378.78 at 9.50 am, still up 40.83 points or 0.05 per cent. The Nifty 50 also opened stronger at 24,890.40 compared to its previous close of 24,821.10, but slipped to 24,831.90 at 9:50 am, up just 10.80 points or 0.04 per cent.
Market sentiment remained cautious as investors awaited the Federal Reserve’s policy decision later today, with analysts expecting rates to remain unchanged. The day’s trading was characterised by mixed sectoral performance, with infrastructure and consumer stocks leading gains while auto and pharma shares faced selling pressure.
“Caution is likely to dominate sentiment at Dalal Street despite Tuesday’s rebound, as markets await the FOMC outcome,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. “Nifty bulls remain on the back foot below the 25,100 hurdle.”
Larsen & Toubro emerged as the top gainer on the Nifty 50, surging 4.39 per cent to ₹3,649 from the previous close of ₹3,495.60. The engineering major’s strong performance was followed by Tata Consumer Products, which gained 1.03 per cent to ₹1,072.50, and Asian Paints, up 1.00 per cent at ₹2,425.50. NTPC and Bharti Airtel also featured among the top gainers, rising 0.91 per cent each to ₹337.65 and ₹1,935.70 respectively.
On the downside, Tata Motors led the losers, falling 3.52 per cent to ₹667.95 from the previous close of ₹692.35. The decline came amid broader weakness in the auto sector. Eicher Motors dropped 1.42 per cent to ₹302.20, while Dr Reddy’s Laboratories fell 1.39 per cent to ₹1,281.70. Coal India and Shriram Finance also declined, losing 0.73 per cent and 0.67 per cent respectively.
The market faced multiple headwinds, with Foreign Institutional Investors continuing their selling spree for the seventh consecutive trading day. FIIs sold equities worth ₹4,636 crore on July 29, while Domestic Institutional Investors remained supportive, buying ₹6,146 crore worth of stocks.
Trump’s impact
“The major drag on the market continues to be the negative news on the India-US trade front,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. “President Trump’s comment that India may have to pay 20-25 per cent tariff is very negative from the short-term market perspective.”
Technical analysts noted that the Nifty found support at its 100-day exponential moving average during Tuesday’s session. “The formation of a bullish candlestick pattern, supported by strong volumes, reflects buying interest at lower levels,” said Hardik Matalia, Derivative Analyst at Choice Equity Broking Private Limited. “If the index sustains above 24,800, a further rally toward 25,000 and 25,200 can be anticipated in the near term.”
However, broader market sentiment remained fragile due to multiple concerns. “Intraday optimism may fade due to six negative cues: overbought technical conditions, heavy profit booking, FII net selling of ₹41,006 crore in July, muted Q1FY26 earnings, uncertainty over US-India tariff talks, and fading hopes of a rate cut,” Tapse added.
The commodities market showed mixed signals, with gold and silver rebounding from recent lows after weaker US jobs data. “Gold and silver prices rebounded from recent lows after US JOLTS data for June showed job openings falling to 7.44 million, below both May’s 7.77 million and market expectations of 7.51 million,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Crude oil continued its rally, hitting a five-week peak after geopolitical tensions escalated. “Crude oil rallied again, hitting a five-week peak after the US President took a tough stance on Russia, demanding an end to the Ukraine war within 10 days or face fresh sanctions and tariffs,” Kalantri noted.
From a sectoral perspective, infrastructure and power stocks showed resilience, while auto and pharmaceutical stocks faced pressure. The broader market outlook remained cautious, with analysts advising a “sell on rise” strategy.
“From a broader economic viewpoint, it’s important to understand that markets often react ahead of the release of GDP or economic data,” said VLA Ambala, Co-Founder, Stock Market Today. “The slow growth expectations, ongoing layoffs in the IT sector, and signs of weakening consumer sentiment suggest a possible deceleration in consumer sector growth.”
Market participants were closely watching key support levels, with analysts identifying 24,600 as immediate support for the Nifty and 55,500-55,150 for Bank Nifty. Any decisive break below these levels could trigger deeper corrections, while sustained trading above current levels might pave the way for a recovery toward 25,000 levels.
The day’s trading reflected the broader uncertainty gripping markets, with investors balancing domestic economic concerns against global monetary policy developments and ongoing geopolitical tensions.
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Published on July 30, 2025
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