GIFT Nifty signals weak start as global trade uncertainty looms

GIFT Nifty:

GIFT Nifty July 2025 futures were trading 27.50 points lower in early trade, suggesting a negative opening for the Nifty 50.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 374.74 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,103.51 crore in the Indian equity market on 18 July 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 10775.37 crore in the secondary market during July 2025. This follows their purchase of shares worth Rs 8466.77 crore in June 2024.

Global Markets:

Most Asian stocks traded higher on Monday after the People?s Bank of China opted to leave its key loan prime rates unchanged, keeping the 1-year rate at 3.0% and the 5-year rate at 3.5%. This move provided a measure of stability in the region, even as broader market sentiment remained shaped by renewed concerns over global trade policy.

Trade developments came back into focus over the weekend following strong signals from Washington. The White House reiterated its stance on tariffs, with U.S. Commerce Secretary Howard Lutnick designating August 1 as the definitive deadline for countries to begin paying newly announced tariffs. Still, Lutnick added that negotiations could continue beyond that date, suggesting a potential window for ongoing dialogue.

In the U.S., major equity indices lost some ground on Friday as uncertainty around the Trump administration?s trade strategy persisted. Reports indicated that President Trump remained intent on imposing a 15% to 20% levy on the European Union, even if a broader deal is reached, while the EU was said to be arguing for a 10% tariff in response. Despite continued statements from the White House about ongoing negotiations, the number of new trade deals announced remains notably lower than what Trump had promised earlier in the year.

At Friday?s close, the Dow Jones Industrial Average was down 0.32%, the S&P 500 slipped 0.01%, and the NASDAQ Composite inched up by 0.05%, reflecting the cautious tone that continues to dominate global markets.

Domestic Market:

Key equity benchmarks closed lower for a second consecutive session on Friday, weighed down by lackluster corporate earnings and subdued global cues. The S&P BSE Sensex dropped 501.51 points or 0.61% to 81,757.73. The Nifty 50 index slipped 143.05 points or 0.57% to 24,968.40. With this, the Sensex and Nifty have shed 1.06% and 0.97% over the past two sessions, respectively.

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