India’s stock market opened quiet on Wednesday morning. Hopes of a new U.S.-India trade deal brought some cheer, but heavy selling in financial stocks kept the benchmark indices flat.
President Donald Trump on Tuesday said the U.S. and India could soon reach a trade deal. This deal could help India avoid a 26% tariff that was announced in April and paused until July 9. The news gave investors some hope. But gains were limited.
At 10:14 a.m. IST, the Nifty 50 slipped by 0.08% to 25,521.55. The BSE Sensex was down 0.03% at 83,675.62.
HDB Financial Shines on Debut
One of the few bright spots was HDB Financial Services. Its IPO—the biggest in India this year—debuted strong at ₹835 on the NSE. That’s a 12.84% jump over its issue price of ₹740.
The strong listing showed investor trust in HDB’s future. However, it wasn’t enough to lift the broader market, especially when banking stocks were weak.
Financial Stocks Pull Back
Financials saw heavy selling. The Nifty Financial Services Index dropped 0.5%—its third straight day in the red after hitting record highs last week.
Big names like HDFC Bank and Reliance Industries slipped around 0.5%. Mid-cap and small-cap indices also fell by 0.5% and 0.3%, showing that the weakness wasn’t just in large caps.
Private bank IndusInd Bank fell by 3%, and SBI Card lost 2.5%. Both stocks were hit by a downgrade from Goldman Sachs.
Tech Stocks Rise on Trade Optimism
There was some good news too. IT stocks gained as they earn a big part of their money from the U.S. The Nifty IT Index rose 1.4%, showing that investors are hopeful a trade deal could boost the sector.
U.S. Treasury Secretary Scott Bessent also hinted at progress in talks. This added to optimism that India might avoid harsh tariffs.
“Positive trade news may lift Nifty, but without strong earnings, it’s hard to hold gains,” said V.K. Vijayakumar of Geojit Financial Services.
What Lies Ahead?
Markets are clearly watching global trade developments. A deal with the U.S. could improve sentiment. But until financials find support and corporate earnings bounce back, it may be hard for indices to rise further.
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
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