On July 4, Indian equity benchmarks stayed rangebound by midday as the BSE Sensex declined by 129.80 points to 83,059.67, while the Nifty 50 is trading 40 points lower at 25,367.15, supported by strength in FMCG and IT stocks.

US tariff deadline approaches

Markets remain cautious ahead of the July 9 deadline set by U.S. President Donald Trump for reciprocal trade tariffs. The potential for a last-minute resolution with India has kept gains in check, while volatility has remained elevated.

Sectoral trend: FMCG, IT support, metals drag

• The Nifty Metal index fell 0.8 per cent, followed by losses in Auto, Banking, and Consumer Durables stocks.

• On the other hand, FMCG, Pharma, Realty, and Oil & Gas stocks offered some support to the headline indices.

• Broader markets underperformed with both the Nifty Midcap 100 and Smallcap 100 indices down 0.36 per cent each.

Top gainers and losers

Top gainers on the Sensex included Bajaj Finance, Bharat Electronics, Hindustan Unilever, and Bajaj Finserv.
Top laggards were Tech Mahindra, Tata Steel, Maruti Suzuki, M&M, and Sun Pharma.

FII-DII activity, global cues in focus

While Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,481.19 crore, Domestic Institutional Investors (DIIs) continued their buying streak, purchasing shares worth Rs 1,333.06 crore on July 3.

Global sentiment remained mixed. Asian markets traded in a narrow range, even as US equities closed at all-time highs following strong job data and optimism over fiscal stimulus from the “One Big Beautiful Bill” passed by the US House.

What to watch next

Investors remain focused on potential policy moves from the US and their impact on Indian exporters. Regulatory overhang also persists after SEBI’s interim action against Jane Street on equity derivatives manipulation.