Sensex, Nifty lack direction amid tariff uncertainty; IT, metal, pharma drag; India VIX rises 1.5%

Benchmark indices Nifty and Sensex extended their sideways drift on Monday, swinging between gains and losses as weakness in IT, metal, and banking stocks kept sentiment subdued. The broader market mood remained cautious amid uncertainty over an India-US trade pact and persistent geopolitical tensions in the Middle East. FMCG was the lone bright spot, with the index rising over a percent to outperform the pack.

At about 12:25 pm, the Sensex was down 33.58 points or 0.04 percent at 83,399.31, and the Nifty was down 13.70 points or 0.05 percent at 25,447.30. About 1430 shares advanced, 2078 shares declined, and 148 shares were unchanged

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"Markets are jittery as the July 9 tariff deadline approaches, with investor anxiety mounting over potential trade disruptions. Trump announced Thursday that his administration would begin dispatching letters to various countries starting Friday, detailing the import tax rates they must pay to access U.S. markets, Devarsh Vakil, Head of Prime Research at HDFC Securities, said.

"There is a risk that President Trump reinstates higher ‘reciprocal’ tariffs on major economies such as Japan and Europe. Round-the-clock negotiations between Indian and American officials had raised hopes of sealing a deal. However, uncertainty persists about when a comprehensive trade agreement will materialise. The tight timeline has heightened concerns about what the coming days might bring for bilateral commerce," Vakil added.

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Sectoral trends on the NSE were mixed on Monday. India VIX rose 1.70 percent to 12.53, indicating a slight increase in market volatility. Nifty FMCG led the gainers with a 1.55 percent rise, followed by Oil & Gas and PSU Bank indices, which gained 0.36 percent and 0.15 percent, respectively. Nifty Energy and Infra edged up marginally. On the flip side, IT, Metal, and Smallcap 100 indices fell 0.56 percent, 0.69 percent, and 0.51 percent, respectively. Other laggards included Nifty Bank, Auto, Consumer Durables, and Realty, all slipping between 0.10 and 0.19 percent.

Among individual stocks, shares of Senco Gold hit a 5 percent upper circuit after the company announced a robust business update for the April–June quarter (Q1FY26). In its Q1 business update, the company reported a 24 percent year-on-year (YoY) increase in retail revenue, while total revenue surged by 28 percent YoY.

Read more: Jio BlackRock raises Rs 17,800 cr through debut NFO

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.

Shares of Hazoor Multi Projects jumped over 14 percent after the company secured a Rs 913-crore EPC contract. The company announced it has received a Letter of Award from Apollo Green Energy for a 200 MW grid-connected solar power project at GSECL’s Khavda solar park in Gujarat. The contract includes design, supply, construction, and commissioning of the project.

A decisive move beyond the gap area of the 25,650–25,750 zone will be required to resume the uptrend toward fresh all-time highs. On the downside, the 20-day exponential moving average (DEMA) around 25,200, which coincides with the upper boundary of the earlier consolidation range, will serve as the first key support, followed by the 24,800 level.

"The banking index continues to trend upward, albeit gradually. However, a mixed performance among private sector heavyweights such as HDFC Bank, ICICI Bank, Kotak Bank, and Axis Bank is limiting momentum. On the contrary, PSU banks remain strong and are showing trend consistency. We expect the index to maintain its current trajectory and move toward the 57,600–58,400 zone. In case of a dip, immediate support lies at the 20 DEMA (~56,500), with stronger support near 55,500," Ajit Mishra, Senior Vice President of Religare Broking, said.

Hindustan Unilever, Tata Consumer Products, ITC, Eicher Motors, and Jio Financial Services were the top gainers on the Nifty. Eternal, BEL, Tech Mahindra, Hindalco, and UltraTech Cement were the major laggards on the index.

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