India’s equity markets began the week on a muted note, with the Sensex and Nifty opening flat amid a mix of global cues and domestic earnings trends. On August 4, 2025, the early session showed a modest uptick in sentiment, even as broader concerns over international trade and weak macroeconomic data weighed on investor confidence.
GIFT Nifty, a futures indicator for the Nifty 50 index, opened significantly higher—up about 80 points—at 24,683, pointing to a positive start. However, by market open, the Nifty 50 settled around 24,627–24,656, showing little net movement from its previous close of 24,565. The BSE Sensex too maintained a flat-to-mildly positive stance in early trade.
This flat start came even after GIFT Nifty’s optimistic signal, as investors remained cautious due to rising trade tensions—especially following fresh U.S. tariffs on Indian goods—and weak U.S. employment data that raised questions about global economic stability.
The recent trend has been one of consolidation, with both indices coming off a 1.1% decline last week, marking their fifth consecutive week of losses. Despite the early momentum, sentiment remained guarded, with many investors holding back amid uncertainty around global trade and macro policies.
While the broader markets remained flat, ITC Ltd. emerged as a key outlier, gaining noticeably in early trade following its better-than-expected Q1 results. The company posted a 3% year-on-year rise in net profit, reaching ₹5,244 crore, driven by strong performance in cigarettes and packaged food segments.
Analysts from firms like Antique, Avendus, and Motilal Oswal highlighted ITC’s steady earnings as a bright spot in the current earnings season. Though broader markets remained cautious, these robust results lifted investor interest in ITC shares.
Sector-wise trends reflected the mixed mood: while banking and metal stocks showed resilience—supported by strong Q1 earnings from firms like HDFC Bank, ICICI Bank, and L&T—the IT sector remained under pressure due to subdued results from major players including TCS and Infosys.
Global uncertainty: Recent tariffs from the U.S. on India and other traders have created jitters. Meanwhile, global equities have shown mixed performance, and worries about slowing growth persist.
Weak U.S. labour data: Job numbers for July were weaker than expected, raising hopes of a U.S. Federal Reserve rate cut in September. This could bode well for emerging markets like India but also signals softer momentum ahead.
Foreign fund exit: Foreign portfolio investors (FPIs) sold over $2 billion worth of Indian shares in July, bringing 2025’s total FPI outflow to about $11.6 billion, signalling cautious sentiment.
Earnings season fatigue: While some sectors reported strong numbers, overall Q1 results have been uneven, prompting cautious investor stance. Markets are watching carefully to see which companies can sustain momentum.
Market experts, including Neeraj Dewan, suggest that the market may slowly recover once investors digest mixed Q1 earnings and global economic uncertainty. Dewan advises a selective investing approach—focusing on sectors with strong fundamentals rather than broad-based risks.
Analysts also expect market movements to remain stock-specific, driven by individual company earnings and performance. For now, a “watch-and-see” approach is recommended until clearer signals emerge on global trade, Fed policy, and domestic economic data.
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Early indicators suggested a positive start, but markets opened flat as caution prevailed.
ITC stood out with strong quarterly profits, leading gains in FMCG space.
Broader sectors reflected mixed views—finance and metals held up, IT lagged.
Investors remain guarded, awaiting clarity on trade deals, inflation, and corporate earnings.
With global issues unresolved and earnings season ongoing, the outlook suggests careful monitoring—markets may inch forward, but volatility remains likely in coming sessions.
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