Indian benchmarks log weekly losses on caution over trade deal, Jane Street ban

Indian benchmarks edged up on Friday, lifted by IT stocks after upbeat U.S. jobs data eased economic concerns and a late rebound in financials, but posted losses for the week as investors remained cautious ahead of a potential India-U.S. trade deal.

The Nifty 50 rose 0.22% to 25,461, and the BSE Sensex added 0.23% to 83,432.89.

Both benchmarks lost about 0.7% this week, after a sharp 15% rally between March and June pushed valuations above 10-year averages. Market participants are eyeing the outcome of trade talks, with President Donald Trump’s July 9 deadline for reciprocal tariffs fast approaching.

“There’s growing unease that the deal may not be as favourable as initially expected,” said Avinash Gorakshakar, director of research at Profitmart Securities. “Investors are trying to assess which Indian sectors might take a hit.”

Seven of the 13 major sectors declined this week. Small-cap and mid-cap indexes rose 0.3% and 0.5%, aided by steady domestic inflows, a stable monsoon outlook, and hopes of stronger June-quarter earnings on a low base.

Financials slipped 1.75% for the week, retreating from record highs.

Indian stocks down as profit booking in financials overshadows trade deal optimism

Valuation concerns and broad profit-booking also kept markets subdued this week, according to analysts.

On the day, shares of stock exchange BSE and brokers Nuvama Wealth, and Angel One dropped after the markets regulator barred Jane Street, one of the world’s largest quant trading firms, from India’s securities market citing manipulation through derivative positions.

“We’re already seeing pressure on broking firms and capital market-related stocks, likely due to the anticipated unwinding of positions,” Gorakshakar said, referring to the impact of the regulator’s action.

IT index rose 0.8% on the day aided by upbeat U.S. jobs data while financials rebounded after the four-session drop

Among individual stocks, Trent slumped 11.9% on the day to settle 9.4% for the week, on weak growth commentary. Trent was the top Nifty loser on both the daily and weekly basis.