Closing bell: Sensex, Nifty end marginally higher as tariff deadline looms; RIL, BEL, Apollo Hospitals lead

The Indian equity benchmark indices, the BSE Sensex and the NSE Nifty, closed Tuesday’s session on a flat but positive note, amid cautious optimism across Asian markets. Investor sentiment remained guarded ahead of the July 9 tariff deadline set by U.S. President Donald Trump, with trade negotiations being closely monitored.

The BSE Sensex gained 90.83 points, or 0.11%, to close at 83,697.29, while the NSE Nifty50 ended with marginal gains of 24.75 points, or 0.10%, at 25,541.8. Among broader indices, the Nifty Midcap100 closed flat, while the Nifty Smallcap100 fell 0.10% as investors booked some profit at higher levels.

Following an initial uptick, the benchmark indices moved in a narrow range and eventually settled near the baseline. The India VIX, a gauge of market volatility, declined 2.01% to 12.5, indicating reduced near-term uncertainty.

Of the BSE Sensex pack, 20 of the 30 stocks ended in the green, led by Bharat Electronics Ltd (BEL), Reliance Industries, Asian Paints, UltraTech Cement, and Kotak Mahindra Bank, rising in the range of 0.9-2.5%. On the other hand, Axis Bank, Trent, Eternal (Zomato), Tech Mahindra, and ICICI Bank were among the top five losers, falling between 2.1% to 0.95%.

Among individual stocks, Apollo Hospitals Enterprises (AHEL) rose nearly 4% after the country's largest healthcare chain decided to demerge their omni-channel pharma and digital health businesses (24x7 telehealth business) into a new entity.

“On the sectoral front, a mixed trend kept participants engaged—metals, banking (particularly the PSU pack), and pharma witnessed gains, while FMCG and IT ended lower. The broader indices, after their recent outperformance, also traded flat in a subdued session,” said Ajit Mishra, SVP, Research, Religare Broking.

He said that buoyancy in global markets—especially the U.S.—along with stable domestic cues suggests that the prevailing trend is likely to continue. “We, therefore, reiterate our “buy on dips” view, with a strong emphasis on stock selection. However, participants should adopt a cautious stance on the broader market given the overbought conditions in select pockets."

Investors seek clarity on U.S. tariffs

Vinod Nair, Head of Research, Geojit Investments, said the indices traded within a narrow range, following last week's strong rally driven by easing geopolitical tensions and optimism over a potential U.S. trade deal. Investors are closely monitoring developments, seeking clarity on U.S. tariffs as the 90-day pause approaches its end.

“Additionally, confidence in domestic earnings growth remains crucial for sustaining market sentiment, with Q1FY26 results, set to begin next week, expected to provide further insight.  Meanwhile, multiple tailwinds, including a favourable monsoon, declining inflation, including benign crude prices, and government efforts to boost demand, are anticipated to lend continued support to investor sentiment," he said.

Technical charts indicate indecisiveness among bulls, bears

Technically, after a muted open, the benchmark indices – Nifty and Sensex - hovered between 24,500/83,600 and 24,600/83,900 price ranges throughout the day. “A small candlestick formation on daily charts and non-directional intraday activity on intraday charts indicate indecisiveness between the bulls and the bears,” said Shrikant Chouhan, Head Equity Research, Kotak Securities:

“We believe that the current market texture is non-directional, perhaps with traders waiting for either side to make a breakout. For the bulls, the immediate breakout zones are 25,600/83,900. A successful breakout above these levels could push the market toward 25,700–25,750 / 84,200–84,400. On the flip side, a dismissal of 25,470/83,500 could accelerate selling pressure. Below these levels, the market could retest 25,375–25,300 / 83,200–83,000,” he added.

For the short term, Nifty’s support is seen at 25,500; a decisive fall below this level might trigger long unwinding in the market. However, if the index holds above 25,500, a recovery could emerge, potentially pushing the Nifty towards 25,600–25,800 in the short term, said Rupak De, Senior Technical Analyst at LKP Securities, in a note.

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