Market eyes soft start; Nvidia rally offsets tariff jitters globally

GIFT Nifty:

GIFT Nifty July 2025 futures were trading 28 points lower in early trade, suggesting a negative opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 77 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 920.83 crore in the Indian equity market on 9 July 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 1953.12 crore in the secondary market during July 2025. This follows their purchase of shares worth Rs 8466.77 crore in June 2024.

Global Markets:

US Dow Jones futures slipped 58 points, hinting at a tepid start for Wall Street today.

Most Asian equities edged higher on Thursday, riding a wave of optimism from the tech sector after Nvidia briefly crossed the $4 trillion valuation milestone. However, gains were tempered by growing unease over fresh U.S. trade tariffs announced by President Donald Trump.

Trump has begun dispatching formal letters to major trade partners, outlining steep new tariffs. Japan and South Korea each face a 25% tariff, while Brazil was hit with a 50% levy, prompting strong criticism and threats of reciprocal action from Brasilia. Trump also confirmed a 50% tariff on copper imports, claiming it was necessary to revive the domestic copper industry.

In South Korea, the Bank of Korea held interest rates steady, as expected, while signaling a readiness to ease policy further amid ongoing economic challenges.

Overnight on Wall Street, the Nasdaq hit record highs despite the tariff drama, lifted by a strong rally in Nvidia, which briefly topped $4 trillion in market cap. Investor enthusiasm around AI continued to fuel tech stocks, with Meta Platforms and other major names also ending in the green.

At the close, the Dow Jones gained 0.49%, the S&P 500 rose 0.61%, and the Nasdaq jumped 0.95%.

The Federal Reserve?s June meeting minutes, released Wednesday, showed most policymakers still expect rate cuts this year, though divisions are emerging. While some members are eyeing a possible cut as early as July, others see no need for any easing in 2025.

Domestic Market:

Equity benchmarks ended moderately lower Wednesday, weighed down by lingering uncertainty over potential U.S. tariff actions and the prospects of a U.S.-India trade deal. While tariff concerns continue to cloud sentiment, investor attention is now turning to the Q1 earnings season, with IT giant TCS set to report its results on Thursday, July 10. The Nifty closed below the 25,500 mark, pressured by declines in metal and energy stocks. The S&P BSE Sensex declined 176.43 points or 0.21% to 83,536.08. The Nifty 50 index fell 46.40 points or 0.18% to 25,476.10.

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