Sensex off to a choppy start, Nifty over 25,450; bank, IT stocks lead gainers
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Key benchmark equity indices, Sensex and Nifty50, opened flat on Tuesday amid caution due to uncertainty over U.S. trade policies, as President Donald Trump announced steep import tariffs on several trading partners while signalling that a deal with India was close.At 9:30 am, the BSE Sensex up 56 points, or 0.07%, at 83,499, while the Nifty50 rose 17 points, or 0.07%, to 25,478.On Monday, President Trump announced that higher U.S. tariffs will take effect from August 1, marking a new phase in the trade war launched earlier this year. He imposed a 25% levy on key Asian allies, including Japan and South Korea, while stating that the U.S. was close to finalising a trade deal with India.The proposed tariffs are expected to push up prices and slow economic growth. However, the greater concern for businesses may be the uncertainty around final policy outcomes, which is causing many to delay key decisions.Wall Street slid, with the S&P 500 Index logging its biggest drop in three weeks. Asian markets were mixed on the day, with MSCI's broadest index for Asia-Pacific stocks outside Japan down 0.1%.In April, President Trump capped all reciprocal tariffs with trading partners at 10% until July 9 to allow time for negotiations. So far, only two deals—one with Britain and another with Vietnam—have been finalised.Meanwhile, in the Sensex pack, Kotak Mahindra Bank NTPC , and Adani Ports were among the top gainers, rising up to 4.2%. On the other hand, Titan , HCLTech, M&M, and Bharti Airtel opened in the red.Kotak Mahindra Bank gained over 4% after the bank reported a 14% year-on-year rise in net advances as of June 30, while average total deposits increased by 12.9%. Titan Company shares slid nearly 5% despite reporting a 19% YoY increase in domestic sales for the first quarter, driven by higher gold prices—surpassing the 9.3% growth recorded in the same period last year.On the sectoral front, Nifty Bank rose 0.35%, while Metal gained 0.25%. Nifty IT, FMCG, and Oil & Gas also opened in positive territory. In the broader market, the Nifty Smallcap100 surged 0.4%, and the Nifty Midcap100 added 0.1%.
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That's when we expect to see the full benefits of the ₹1 trillion income tax reduction for consumers, alongside the sharp rate cuts, truly beginning to stimulate demand and translate into stronger corporate results. We should see earnings gather significant momentum in the second half of FY26. We are now in a 'themeless' market, very different from the 'theme-driven' market of the past decade. (The period)2015-2020 was all about consumption and private banks, then 2021-2024 saw the rise of capex-linked sectors and PSUs(public sector undertakings). If you picked the right theme, making money felt relatively easy. However, post that sharp correction we experienced from September 2024 to April 2025, I truly believe we've entered what I'd call a 'themeless' phase. This means it's no longer about simply betting on an entire sector. Moving forward, every sector will have its winners and losers, and success will largely hinge on the individual earnings trajectory of specific companies. 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