Dalal Street extended its losing streak for the third consecutive session on July 14, as global tariff tensions and profit booking pressured equities across the board.
After starting on a slightly positive note, markets quickly turned volatile, dragged lower by selling in heavyweight stocks and weak global cues. Investors grew nervous after U.S. President Donald Trump announced fresh 30% tariffs on goods from the European Union and Mexico, starting August 1, escalating global trade tensions once again.
The Nifty 50 dropped below 25,100, while the Sensex lost over 400 points in intraday trade.
Profit Booking Dominates, Weak Earnings Add to Pressure
What began as mild gains in the morning quickly gave way to profit booking, as investors chose to offload positions and lock in gains amid uncertain macro signals.
Adding to the pressure was the growing expectation of a weak earnings season, particularly for the June quarter. While a few heavyweight Nifty 50 companies are set to report results this week, analysts expect the momentum to pick up only in the second half of FY26.
Traders are wary of soft earnings and lack of a U.S.-India mini-trade deal, which has further soured sentiment.
Sector Watch: IT Drags, PSU Banks Shine
On the sectoral front, the performance was mixed:
Nifty IT index was the biggest loser, tumbling over 1.3% after disappointing earnings from TCS weighed heavily on tech stocks.
Bank Nifty and Oil & Gas stocks also ended in the red, showing signs of cautious trading.
PSU Banks outperformed, with the Nifty PSU Bank index gaining around 0.5%.
Healthcare and Media sectors also managed to stay in the green, offering some support to broader indices.
Meanwhile, mid-cap and small-cap stocks outperformed, as investors shifted focus to broader markets. The Nifty Midcap 100 and Smallcap 100 gained around 0.3% and 0.5%, respectively.
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Strategy: Sell on Rise, Stay Cautious
With rising volatility and global uncertainties, experts advise traders to be cautious. A “sell on rise” strategy is recommended, especially for those using leverage. Tight trailing stop-losses and partial profit booking are suggested to reduce risk.
“Fresh long positions should only be taken if Nifty sustains above 25,378,” said Hardik Matalia, Derivative Analyst at Choice Broking.
“The broader market tone remains cautiously bullish, but global cues need to be watched closely.”
What to Watch Next?
The next few sessions will be guided by:
Q1 earnings from major Nifty 50 companies
Updates on trade negotiations between India and the U.S.
Global market sentiment amid fresh tariff announcements
For now, the market mood remains fragile, and a decisive move above key levels is needed to regain bullish momentum.
