Benchmark indices Sensex and Nifty fell in early trading on Monday as investors remained cautious ahead of the July 9 US tariff deadline.
According to market experts, uncertainty over the US-India trade agreement contributed to the volatility. The 30-share BSE Sensex dropped 170.66 points to 83,262.23, while the 50-share NSE Nifty slipped 53.75 points to 25,407.25 during early trade.
By 10:16 am, the Sensex had pared some losses, down 62.24 points at 83,370.65, while the Nifty was 20.25 points lower at 25,440.75.
July 9 signifies the end of a 90-day suspension on tariffs introduced during the Trump administration, affecting several countries, including India. An additional import duty of 26 per cent was announced on Indian goods entering the US.
Market expert Ajay Bagga told ANI that President Trump is now likely to focus more on tariffs and trade. He said, “Big picture for this week and July is that Trump’s focus moves back to tariffs and trade. Trump has triumphed in getting his “One Big Beautiful” tax and spending bill passed by the US Congress. Now he will focus on tariffs. There is constant news flow on this front and we expect many reversals.”
According to Bagga, the action plan from the US appears to be the imposition of a 10 per cent universal tariff on imports from over 100 countries starting August 1. Meanwhile, the US is expected to pressure its top 12 trading partners to sign trade deals before that date by threatening higher tariffs.
Speaking about India, Bagga added, “What seems to be the action plan is first, over 100 countries will get letters levying 10 per cent universal tariffs as of August 1st on their imports into the US. Second, the major top 12 trading partners will be pressured into signing deals with the Trump administration before August 1st, with threats of higher tariffs. What about India? We have time till August 1st now, so there is a few week time to negotiate further.”
He also mentioned that items like steel, aluminium, autos, and auto parts already face higher sectoral levies ranging from 25 per cent to 50 per cent since April 2025. Countries like the EU, Japan, South Korea, and India are standing firm in their trade talks with the US.
From the Sensex firms, Bharat Electronics Ltd, Tech Mahindra, HCL Technologies, Eternal, ICICI Bank, and Sun Pharma were among the laggards.
However, Trent, Asian Paints, Hindustan Unilever, Bajaj Finserv, and HDFC Bank were among the gainers. In Asian markets, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index Hong Kong’s Hang Seng quoted lower while South Korea’s Kospi traded higher.
