Indian Stock Markets Slip Amid Global Trade Uncertainty; Sensex Drops 200 Points as Investors Stay Cautious Before Trump’s Tariff Deadline

Indian stock markets witnessed a decline in early trade on Friday, July 4, 2025, as investor sentiment turned cautious ahead of the July 9 deadline for potential new tariffs from US President Donald Trump. Concerns over global trade tensions and their possible impact on emerging markets weighed heavily on local equities.

At midday, the BSE Sensex was down by 169 points, trading at 83,071, while the broader Nifty 50 hovered around 25,350.15, showing marginal movement. Despite this dip, select large-cap stocks provided some support.

Top gainers on the Sensex included Bajaj Finance, Bharat Electronics, Hindustan Unilever, and Eternal. However, the broader market trend remained negative. Stocks like Trent, Tech Mahindra, Tata Steel, Maruti Suzuki, and Asian Paints featured among the day’s top losers.

Sectorally, the Nifty Metal index dropped by 0.8%, while Nifty Auto shed 0.5%, reflecting weakness in cyclical sectors sensitive to trade and economic outlook.

Meanwhile, capital market-linked stocks, including BSE, Angel One, CDSL, Nuvama Wealth Management, and 360One WAM, slipped by as much as 5% after the market regulator SEBI imposed restrictions on US-based trading firm Jane Street over allegations of market manipulation.

In company-specific news, Trent’s share price plunged by up to 8% intraday after the firm cautioned shareholders about slower-than-expected growth in its fashion segment for Q1FY26E — projected at 20%, significantly lower than its historical five-year CAGR of 35%.

Midcap and Smallcap indices also followed the broader weakness, both declining by 0.36% each.

As investors navigate global uncertainty around tariffs and domestic corporate earnings, market participants expect volatility to persist in the short term.