Dalal St: Focus on India-US trade deal : July 6, 2025
Uncertainties surrounding the India-US trade agreement and the impending Q1 results are expected to influence investor sentiment as the Indian stock market prepares for a crucial week.Key economic statistics will be keenly monitored because of the impact of profit-taking and foreign capital outflows on indexes.
Due in large part to profit booking amid ongoing uncertainty over the India-US trade deal, prudence ahead of the start of the earnings season, and foreign capital outflow, the Indian stock market concluded the week ending July 4 in negative territory.
Both the Sensex and the Nifty 50 ended the week 0.70 percent lower,ending their two-week winning streak.
Profit-taking was the main cause of the decrease,as investors became wary before important international trade events.The prompt completion of trade deals with key economies, notably India,was questioned due to worries about possible US trade reprisal.
Ajit Mishra,SVP of research at Religare Broking,stated that the downside was minimal in light of news of a probable temporary agreement between the US and India prior to the deadline.
The small-cap and mid-cap sectors,however,held up well. The Nifty Midcap 100 and Nifty Smallcap 100 indices increased by 0.50 and 0.30 percent, respectively, continuing their gains for the second week in a row.
Although the market’s overall trend is still positive, the upcoming week will bring a number of significant events that could affect the Indian stock market’s short-term trajectory, such as trade agreements between the US and India, Q1FY26 earnings, and the minutes of the US FOMC’s most recent meeting.
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