markets close lower due to uncertainties surrounding US-India trade agreement negotiations
On July 17, 2025, the Indian equity market showed a mix of trends as investors navigated ongoing trade negotiations between India and the United States. The US administration's decision to exclude India from the initial round of tariff hikes provided a positive impact, boosting investor sentiment and offering relief to exporters.
Despite this temporary reprieve, the market remained cautious due to ongoing legal disputes regarding tariffs at the WTO, particularly concerning automobiles, steel, and aluminum. This uncertainty weighed on sentiment, with investors carefully considering the potential for a finalized trade deal against the risk of escalating trade frictions.
The Nifty 50, the flagship index of the Indian stock market, fell 100.60 points to 25,111.45, reflecting a bearish sentiment. The Sensex followed a similar trend, ending 375.24 points lower at 82,259.24. However, the Nifty Realty index bucked the trend, rallying 1.23%, driven by selective buying in the sector.
The ongoing earnings season is expected to have a significant impact on market trends, with key companies such as Jio Financials, Axis bank, and Wipro set to announce their results today. The market decline was primarily driven by weakness in heavyweight IT and banking stocks, with Infosys declining 1.67% and IndusInd Bank dropping 1.90%.
In the commodity market, gold prices dipped both domestically and globally. In MCX, gold slipped by ₹500 to trade near ₹97,280, while gold traded weak below $3,330 on Comex. Tata Steel was the second top gainer, with a 1.68% rise, while Tata Consumer Products was the top gainer on the Nifty 50, with a 2.01% gain.
The rupee traded weak by 0.12 per cent at 86.02 against the dollar, and the 50-day SMA at 25,000/82,000 would be the immediate support level for the Nifty 50. The current sentiment appears bearish, and the market may drag Nifty towards the 24,920-24,900 zone in the short term.
In summary, while the delay in tariff imposition and advancing trade negotiations supported Indian stock market trends on July 17, 2025, investors remained vigilant about the possibility of stalled talks or escalating trade frictions beyond the current delay period. The ongoing earnings season is expected to play a crucial role in shaping market trends in the coming days.
[1] "US to delay tariffs on India, excludes New Delhi from immediate round", The Economic Times, July 17, 2025. [2] "US offers lower tariff rates to India: Trump administration", Business Standard, July 17, 2025. [3] "India-US trade talks: Progress made, but challenges remain", The Hindu, July 17, 2025.
- The positive impact of the US delaying tariffs on India led to increased investor sentiment, giving a boost to businesses that rely on international trade.
- As the ongoing trade negotiations between India and the US progress, the investment community closely monitors the potential for a finalized agreement and the consequent effects on stocks and markets.
- Buyers in the technology sector might find opportunities in selective stocks, as the industry often benefits from a stable business environment.
- Due to the uncertainty in the trade market, banking stocks may face volatility in the short term, making it essential for investors to examine their investment strategies carefully.
- In addition to stocks, paying attention to commodity markets, such as gold, is essential for substantial finance management in view of their global pricing trends.
- With the ongoing earnings season, significant performance by companies like Jio Financials, Axis bank, and Wipro could influence trading decisions and set market trends in the financial sector.
