Indian benchmarks end flat as consumer stocks offset broader losses amid tariff uncertainty

Indian equity benchmarks ended little changed on Monday as gains in consumer stocks, led by Godrej Consumer, helped offset broader losses, while investors remained cautious amid growing uncertainty over U.S. trade policy.

The Nifty 50 closed largely flat at 25,461.3 and the BSE Sensex rose 0.01% to 83,442.5.

The more domestically focused small-cap and mid-cap indexes declined 0.4% and 0.3%, respectively.

Nine of the 13 major sectoral indexes ended lower.

Consumer stocks, however, drove sectoral gains, rising 1.7%, led by a 6.4% surge in Godrej Consumer Products after the company projected double-digit revenue growth for the June quarter.

Analysts also attributed the rise in the consumer index to growing expectations of rural demand recovery and stable monsoon rains.

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

Hindustan Unilever rose 3%, while ITC and Nestle added 1% and 1.2%, respectively.

Reliance, the third-heaviest stock on the Nifty, advanced about 1%, helping prop up the benchmark.

In tariff-related news, President Donald Trump said trade deals with several countries are near finalisation and that tariff notifications would be sent by July 9, with new rates effective August 1.

Trump also warned that countries “aligning with the anti-American policies” of the BRICS bloc would face an additional 10% tariff - with no exceptions. India is part of the group.

“Trade policy uncertainty has become a dominant risk for Indian equities,” said Alekh Yadav, head of investment products at Sanctum Wealth.

“With valuations running hot, the market’s on a tightrope-any earnings stumble this quarter could shake sentiment,” Yadav said.

The Nifty and Sensex are about 3% below record highs hit on September 27, 2024.

Among stocks, Indus Towers dropped 3.9% after a Macquarie downgrade, citing slower growth ahead. Eureka Forbes rose 2.4% after partnering with Dixon Technologies to produce robotic vacuum cleaners.