Nifty Trades Flat on July 7, 2025 as US Tariff Countdown and SEBI Probe Weigh on Sentiment

Indian equity benchmarks kicked off the new week on a cautious note, mirroring global nervousness and domestic regulatory overhang. The Nifty 50 hovered near the 25,485 mark by 9:40 AM, showing minimal movement but a slight positive bias. The BSE Sensex also remained muted around 83,400 at open, reflecting uncertainty in investor sentiment.

The subdued start was largely driven by two major factors:

Ongoing US-India Trade Tensions

US President Donald Trump confirmed on Sunday that new trade agreements are nearing finalisation, with tariff notifications expected by July 9. These tariffs initially set at 10% in April and potentially rising to 50% are expected to be enforced from August 1. India, not yet part of any final agreement, remains vulnerable to trade pressure, contributing to market nervousness.

Fallout from SEBI’s Jane Street Probe

A recent report by SEBI alleging that Jane Street manipulated Indian equity markets added further uncertainty to domestic investor confidence. Market participants are watching for further regulatory updates and potential actions that may affect liquidity and sentiment.

Sector and Index Movements

• Bank Nifty was flat at 57,013, mirroring the cautious stance of broader indices.
• Nifty Midcap 100 traded subdued around 59,680, indicating risk aversion among investors towards mid-sized companies.
• Broader markets including small caps also reflected a cautious tone, with no significant traction in early trade.

Stock Highlights: Winners and Losers in Early Trade

Despite the muted index-level movement, select stocks showed notable activity:

1. Top Gainers

Hindustan Unilever is trading higher at ₹2,382.80, up 1.86% in early trade on July 7, 2025, as investor sentiment remains positive toward FMCG majors. Similarly, Asian Paints is witnessing modest gains, trading at ₹2,455.00 with a 1.27% uptick, supported by steady buying interest in the consumption sector.

2. Top Losers

Bharat Electronics is trading lower at ₹418.70, down 2.07% in early trade on July 7, 2025, amid profit booking and weak sentiment in the defence space. Eternal is also under pressure, trading at ₹258.65 with a decline of 1.05%.

Read More: Dividend, Bonus and Stock Split This Week July 7–11: Sun Pharma, JSW Steel, Pfizer, Titan and More.

Conclusion

While the Nifty 50 traded with a slight positive tilt, the broader market mood on July 7, 2025, remained subdued. Investors are likely to stay on the sidelines until there is more clarity on the US-India trade negotiations and the outcome of SEBI’s probe into market manipulation. Stock-specific action will likely dominate short-term trading as headline risks continue to weigh on broader sentiment.

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