Sensex opens 168 points lower, Nifty below 24,800; HUL gains 4%

The S&P BSE Sensex was down by 150.77 points to 81,034.81, while the NSE Nifty50 lost 62.50 points to 24,705.85 as of 9:47 am. 

In Short

• Hindustan Unilever gained 3.73%, Sun Pharma fell 3.72% in early trade
• Experts expect tariff rate to reduce after upcoming negotiations
• FIIs selling and dollar surge add pressure; investors advised to wait and watch

Benchmark stock market indices opened lower on Friday, tracking tariff developments globally as a fresh round of tariffs were announced by the US.

The S&P BSE Sensex was down by 150.77 points to 81,034.81, while the NSE Nifty50 lost 62.50 points to 24,705.85 as of 9:47 am.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the August series starts on a weak note after the 3.1% dip in Nifty in July.

"In the near-term the market will be influenced by the tariff-related news. Since the date of implementation of the modified tariff rates is August 7th, that gives countries time to negotiate and bring the tariffs down. That may happen," he added.

Among the top gainers in early trade on Sensex were Hindustan Unilever, which rose by 3.73%, followed by Asian Paints up 1.41%, Kotak Mahindra Bank and ITC both up 0.97%, and Bajaj Finance up 0.44%.

The worst hit was Sun Pharmaceutical Industries, which fell sharply by 3.72%. Mahindra & Mahindra dropped 2.19%, Tata Steel was down 1.84%, Tata Motors fell 1.66%, and Power Grid Corporation of India slid 1.36%.

"Yesterday’s market action indicates that the market views the 25% tariff as a short-term issue. The rate is likely to come down after the next round of negotiations beginning this month. An important trend in the market is the weakness in the broader market, particularly the smallcaps. This trend is likely to continue given the high valuations of the segment," said Vijayakumar.

"Sustained selling by the FIIs continues to be a negative. The sharp surge in the dollar index to 100 will nudge the FIIs to continue selling putting pressure on largecaps too. Investors can adopt a wait and watch strategy," he added.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

- Ends