Indian Stocks Mixed Amid Global Trade Jitters

Financial sector gains offset losses in pharma and other sectors.

Indian stock benchmarks experienced mixed trading, as gains in financial stocks, particularly **Kotak Mahindra Bank**, countered widespread losses amid ongoing worries regarding global trade and India-U.S. relations.

Market Performance

The Nifty and Sensex traded flat, with financial stocks providing support. Eight of the thirteen major sectors experienced declines. Small-cap and mid-cap stocks each dropped by 0.8%.

Financials and private banks saw gains of 0.4% and 0.6% respectively, driven by **Kotak Mahindra Bank** which jumped 3% following strong loan and deposit growth in the June quarter.

Conversely, pharma stocks declined 1.5% after **Macquarie** downgraded **Aurobindo** and **Dr. Reddy’s**, while slashing targets for **Lupin**, **Cipla** and **Zydus**, citing concerns over U.S. pricing pressures.

**Titan** also faced a decline after disappointing June-quarter sales. Shares of BSE, **Angel One**, and CDSL slid due to regulatory concerns following a ban related to **Jane Street**.

Trade War Impact

U.S. President **Donald Trump** has postponed tariff implementation until August 1. He also announced significant import levies on multiple trading partners. At the same time, he signaled that a deal with India is close.

According to two analysts, risk aversion remains elevated due to the uncertainty surrounding India-U.S. trade discussions.

Textile Sector Gains

Textile stocks experienced a boost after the U.S. imposed 35% tariffs on Bangladesh, a major garments exporter and a key competitor to India. India’s textile and apparel exports are projected to reach $65 billion by 2026 (IBEF, 2024).