The Indian stock market ended Wednesday with modest gains, but the looming uncertainty around the India-US trade deal kept investors cautious. The Sensex closed at 81,481.86 points, up 0.18 percent, while the Nifty settled at 24,855.05 points, rising 0.14 percent. Both indices started the day flat, reflecting the subdued sentiment in the market.
Analysts pointed to the trade tensions between India and the US as a key concern. Comments from former US President Donald Trump about potential tariffs on Indian goods added to the nervousness. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that this development could weigh on the market in the short term.
The US Federal Reserve’s monetary policy decision, expected later in the day, was unlikely to move the markets significantly. Instead, attention remained fixed on the August 1 deadline for the interim trade deal between India and the US. Recent signals from the US administration indicate no extension, increasing the pressure on negotiations.
Despite these challenges, selective buying was seen in capital goods stocks. However, realty and media sectors continued to see profit booking, according to Shrikant Chouhan of Kotak Securities. The benchmarks have faced selling pressure in recent sessions, reflecting investor caution.
Long-term investors might find opportunities in this weakness. Vijayakumar suggested that dips could be a chance to accumulate high-quality stocks at reasonable valuations. India’s strong domestic fundamentals, supported by a responsive RBI and favorable monsoon conditions, provide a cushion. Inflation staying within comfortable limits is another positive.
Market performance over recent years offers some perspective. In 2025 so far, the Sensex has risen around 4 percent. The indices posted gains of 9-10 percent in 2024 and 16-17 percent in 2023. The modest 3 percent growth in 2022 shows how external factors can influence market trajectories.
For now, investors remain watchful. The outcome of the India-US trade talks could dictate near-term market direction. Until then, cautious optimism seems to be the prevailing mood.