Indian Equities Flat as Trade Fears Offset Earnings

India’s stock markets opened sluggishly on July 30, with the Sensex edging up 0.04% to 81,371.66 and the Nifty 50 rising only 0.08% to 24,840.4. The modest rally was led by Larsen & Toubro, which gained nearly 4% after exceeding profit expectations—a rare bright spot in an otherwise cautious mood.

Investor sentiment remains subdued ahead of a key U.S. Federal Reserve decision and the impending Michigan tariff start date. Foreign investors have trimmed exposure amid trade and rate uncertainty, directly affecting emerging market inflows. Tata Motors fell about 3.5% after reports emerged of a planned $4.5 billion acquisition of Iveco, raising concerns about leverage and deal financing under tighter liquidity.

Market commentary highlights that strong earnings alone are not enough to offset macro risk. Analysts expect continued pairing of earnings visibility against trade volatility, with selective sector rotation favoring infrastructure and domestic demand plays over exporters and discretionary packaging. In the near term, equity indices are likely to tread cautiously pending Fed signals and trade resolution clarity.