The shares of IT, metal, and realty companies tumbled in morning trade on July 31 as Trump’s tariffs and penalty on India, along with the outcome of the US Federal Reserve’s FOMC meeting, weighed on Indian stock markets. While the sectoral indices were down more than 1 percent each, benchmark indices were down around 0.6 percent each. Sensex was down 460 points to hover around 81,022, while Nifty dropped 141 points to stand at 24,714.\n\nUS President Donald Trump on July 30 announced 25 percent tariffs and an additional penalty against India ahead of the August 1 deadline. In a post on Truth Social, Trump described India as America's 'friend' but added that it will face 25 percent tariffs plus a penalty for buying Russian military equipment and oil. The US President reiterated that India has among the 'highest tariffs in the world'.\n\nThe US Federal Reserve's Federal Open Market Committee (FOMC) decided to keep interest rates unchanged at 4.25 percent to 4.5 percent in the July 29-30 meeting.\n\nNifty IT: The index dropped 1 percent to hover around 35,161 in the morning. The index has now snapped a two-day gaining streak. Coforge and Wipro shares were the top losers on the index, dropping nearly 2 percent each. Infosys, Mphasis, and Tata Consultancy Services (TCS) shares fell over 1 percent each, while Persistent Systems, Tech Mahindra, and HCL Tech were down with marginal losses. The stocks in the sector have seen a strong downturn recently, after heavyweight TCS announced significant layoffs, which in turn raised concerns over the broader industry. 'IT stocks remain under pressure, and justifiably so. The recent wave of layoffs and hiring freezes points to a demand environment that’s yet to normalize. While some anticipate a second-half recovery, the runway appears longer than previously expected. Budget cuts and delayed decision-making by global clients continue to weigh on sentiment. The space may need more time before a sustained uptrend materializes,' said Bhavik Joshi, Business Head, INVasset PMS.\n\nNifty Metal: Nifty Metal index dropped nearly 1 percent to hover around 9,331. The index has now extended losses for the second consecutive session. Hindustan Copper was the top loser on the index, falling more than 4 percent to trade at Rs 247 apiece. Adani Enterprises shares followed, dropping nearly 1.5 percent. The Adani Group company is set to release its results for the first quarter of the financial year 2026 today. NMDC, Jindal Steel and Power, Hindustan Zinc, and Welspun Corp shares dropped more than 1 percent, while Vedanta, Hindalco, Tata Steel, Jindal Stainless Steel, SAIL, and NALCO shares were trading in the red with marginal losses. 'Metals are bearing the brunt of tariff anxiety, but they’ve also corrected sharply in recent months. With global stimulus chatter rising and inventories low, this may be a setup for a reversion play once dust settles,' Joshi said.\n\nNifty Realty: Nifty Realty dropped more than 1 percent to hover around 907. The index has now extended losses to the second consecutive session. Sobha shares were the top loser on the index, dropping more than 2 percent. Oberoi Realty, Phoenix Mills, and Raymond shares followed, tumbling nearly 2 percent each. Prestige Estates and Anant Raj shares fell more than 1 percent each, while DLF and Brigade Enterprises shares were down in the red with marginal losses. Analyst Bhavik Joshi, however, holds an optimistic view for the sector. 'Real estate is quietly gaining strength. Institutional buying, robust pre-sales, and rising rental yields suggest that premium residential and commercial spaces are seeing genuine demand—not just speculative froth. This trend often leads the broader cycle,' he said.\n\nHere's what analysts say: 'Given the current landscape of heightened volatility and mixed technical signals, traders are advised to adopt a cautious 'sell-on-rise' strategy, particularly when operating with leverage. Booking partial profits on rallies and employing tight trailing stop-losses is essential to manage risk. Fresh long positions should only be initiated if the Nifty sustains above the 25,000 mark. While the broader market undertone remains cautiously bullish, it is crucial to monitor key technical levels and global developments closely,' said Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking Private Limited.\n\nHowever, recent progress in trade negotiations suggests a constructive path forward, and the trade deal between India and the US will eventually follow provided both nations show the necessary political will, said Utsav Verma, Head of Research - Institutional Equities, Choice Broking. 'Many investors expect the tariff rate to eventually settle around 15%, paving the way for renewed confidence and stronger trade ties. In the short term, the market will try to shed off its complacency. We do not expect a huge knee-jerk reaction but a rangebound market focused on ongoing earnings,' he said.

IT, metal, realty stocks tumble up to 4% as Trump's tariffs, FOMC meet outcome weigh

Indian stock markets saw significant declines in IT, metal, and realty sectors on July 31, driven by concerns over U.S.-India trade tensions and the Federal Reserve's FOMC meeting. The Sensex fell 460 points to 81,022, while the Nifty dropped 141 points to 24,714. Trump's announced 25% tariffs on India and delayed FOMC rate decisions exacerbated market anxiety, with key indices like Nifty IT, Metal, and Realty all posting losses. Analysts highlighted sector-specific challenges, including IT layoffs, metal tariff fears, and real estate demand trends, while noting potential for short-term volatility.