Indian equity markets witnessed a broad-based decline on July 31 as IT, metal, and real estate stocks dropped sharply, reacting to global cues. Investor sentiment took a hit following US President Donald Trump’s announcement of 25% tariffs on Indian goods and the outcome of the US Federal Reserve’s FOMC meeting, which opted to keep interest rates steady.
Sectoral Selloff Deepens
Stocks in the IT, metal, and realty sectors were among the worst hit:
Hindustan Copper, Wipro, and Oberoi Realty fell up to 4%
Sectoral indices for IT, metal, and realty were down more than 1% each
Broader markets mirrored the decline, with Sensex falling 460 points to hover near 81,022, and the Nifty slipping 141 points to 24,714, a drop of around 0.6%
Also Read: Trump’s Tariff Impact: Gokaldas, Pearl Global, Other Textile Stocks Fall Up to 9%
Global Triggers: Trump’s Tariffs and FOMC Hold
The sharp selloff was driven by two key developments:
Donald Trump’s Tariff Announcement:
The US President, in a post on Truth Social, confirmed a 25% tariff plus additional penalties on India, effective August 1. He cited India’s “high tariffs” and its purchase of Russian military equipment and oil as reasons for the move.US Fed’s FOMC Outcome:
The Federal Reserve’s Federal Open Market Committee kept interest rates unchanged at 4.25%–4.5% in its July 29–30 meeting. While the pause was widely expected, investors remained cautious amid the Fed’s signal of data-dependent decisions in future meetings.
Market Outlook: ‘Sell on Rise’ Strategy in Focus
With global uncertainties and sectoral weakness dominating the session, analysts are advising a defensive stance.
“Given the current landscape of heightened volatility and mixed technical signals, traders are advised to adopt a cautious ‘sell-on-rise’ strategy,” said Hardik Matalia, an equity strategist.
Neutral Analysis
The twin impact of geopolitical trade tensions and monetary policy uncertainty has added to short-term volatility in Indian equities. While benchmark indices held key support levels, sectoral pressure—especially in globally exposed industries like IT and metals—suggests that markets may remain sensitive to further global developments in the near term.
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