Overview

• President Trump’s 50% tariff on Indian goods triggered a sell-off that pushed the Sensex and Nifty into a sixth consecutive week of losses.
• Foreign institutional investors were net sellers throughout the past week, particularly offloading pharma and IT stocks with large US exposure.
• The Reserve Bank of India’s decision to keep its policy repo rate unchanged at 5.50% and maintain a neutral stance failed to stem market weakness.
• Investors are focused on the release of July’s consumer and wholesale inflation readings this week to guide near-term market moves.
• Broader cues include an expiring US-China tariff truce deadline, a scheduled Trump-Putin summit in Alaska, and a critical US inflation report set to influence global risk appetite.