Indian stock markets witnessed volatility on July 4, 2025, as early gains were wiped out by cautious investor sentiment linked to global trade uncertainties.
The Sensex opened strong but closed 193.42 points higher at 83,432.89, while the Nifty edged up by 55.70 points to settle at 25,461. However, both indices saw notable intraday swings, with the Sensex falling over 400 points from its peak.
One of the key triggers behind the market jitters was a fresh announcement from US President Donald Trump, who indicated that letters outlining new tariff structures would be sent to 10-12 countries. The proposed tariffs range between 10% and 70%, set to take effect from August 1, intensifying concerns ahead of the July 9 deadline for key trade decisions.
Markets dip as Sensex slips 400 pts from day high, Nifty below 25,350 💹 Triggered by Trump’s tariff warning, FII outflows & SEBI ban on Jane Street. #Sensex #Nifty #StockMarket https://t.co/IvC6PyD1HA pic.twitter.com/Y3qcApaF06
— Exploring Times (@Exploring_Times) July 5, 2025
While agreements with the UK and Vietnam have been reached and a temporary pause exists with China, there is still uncertainty surrounding deals with other countries. As a result, many investors chose to take profits off the table, leading to weakness in select heavyweight stocks including Trent, Tata Steel, Tech Mahindra, and Maruti.
Adding to the pressure was the continued outflow of funds by Foreign Institutional Investors (FIIs), who sold equities worth ₹1,481.19 crore on Thursday. Persistent selling by FIIs often signals a cautious global sentiment and affects domestic liquidity.
Markets also reacted negatively to regulatory news. The Securities and Exchange Board of India (SEBI) barred US-based trading firm Jane Street from operating in the Indian equity markets. This action led to a dip in shares of capital market-focused companies, raising concerns over increased regulatory scrutiny in the segment.
Experts, however, believe the move is case-specific and unlikely to drive foreign investors away in large numbers.
On the technical front, analysts pointed to resistance around 25,588 on the Nifty. Despite early signs of an upward move, buying momentum faded, causing a retest of recent lows.
Market experts now eye 25,300 as the next support level, with some predicting a possible slide toward 25,000 if that is breached. However, oversold indicators suggest a bounce-back is also on the cards in the near term.
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