Markets Stay Cautious as US Tariff Deadline Looms, Nifty and Sensex End Flat

Indian stock markets ended Monday on a cautious note, with both Sensex and Nifty50 closing nearly flat amid global uncertainty. Investors treaded carefully ahead of a key US tariff deadline tied to Donald Trump’s trade policy announcements, and the delay in the India-US trade deal added to the unease.

No Major Moves, But Volatility Persists

The Sensex hovered around the 80,100 mark, while the Nifty50 settled just below 24,400. Throughout the day, markets swung between modest gains and minor losses, reflecting the broader nervousness among global investors.

Sectors like IT, auto, and realty showed mild gains, while banking and FMCG stocks dragged. Traders pointed out that volumes remained light, suggesting many investors are waiting for clarity on the geopolitical front before taking fresh positions.

Global Cues Driving Local Sentiment

The hesitation on Dalal Street wasn’t just about local news. Much of the anxiety stems from global developments — particularly, a looming tariff move by the US. Former President Donald Trump has signaled a possible return to high import duties if trade negotiations don’t meet his expectations.

Markets are bracing for potential ripple effects, especially in export-heavy countries like India. Any major change in US trade policy could affect sectors like pharma, textiles, and IT — all of which have deep exposure to American clients.

India-US Trade Deal Delay Adds to Jitters

Talks of a new trade agreement between India and the US had sparked hope in financial circles. However, with no confirmed timelines or details, uncertainty is back in play. For Tier 2 cities where small and mid-sized exporters depend heavily on US markets, the delay could impact business sentiment and planning for the next quarter.

Analysts say that until the trade deal is sealed or the tariff threat is resolved, equity markets may stay range-bound.

Retail Investors Still in the Game

Despite the flat closing, retail investors remained active, especially in midcap and smallcap counters. Many individual traders are choosing to ride out the volatility by focusing on sectoral themes or picking fundamentally strong stocks on dips.

Cities like Indore, Surat, and Nagpur — where first-time investors have grown significantly over the past few years — saw strong participation in the cash segment, even as institutions held back.

Conclusion

The markets may not have made big moves today, but the message is clear: investors are watching global signals closely. Until there’s clarity on the India-US trade deal and the US tariff deadline, caution will likely rule trading floors. For now, flat is the new stable — and that’s something the markets seem willing to accept.