Dalal Street eked out gains in the last half of trade on Tuesday, July 8, as investors turned optimistic around the mini-trade deal to be announced between U.S. and India later tonight. Indian equity markets opened flat and remained range-bound for most of the session, despite global uncertainties triggered by U.S. President Donald Trump’s move to impose 25-40 percent tariffs on 14 countries.

At close, the Sensex was up 270.01 points or 0.32 percent at 83,712.51, and the Nifty was up 61.20 points or 0.24 percent at 25,522.50. About 1889 shares advanced, 1990 shares declined, and 124 shares unchanged. While the mainline indices managed to add some wins, the broader markets were mildly into the red.

The Bank Nifty index gained around 60 basis points, with the gains led by private banking stocks. The IT, realty, and media indices also posted gains. On the flip side, the pharma, public banking, and FMCG stocks fell. Volatility, as measured by the India VIX index, slipped three percent to 12.18.

The much anticipated mini trade deal between India and US will likely be announced today by 10 pm, CNBC Awaaz reported citing people familiar with the matter.  The two countries will announce today that they have agreed to the deal, while the details regarding the same may be released later, the news channel reported.

The 10 percent baseline tariffs earlier announced by US will however continue after the trade deal, but labour intensive sectors like textile, garments and leather products may see reduced tariff rates as part of the deal, the channel said.

Capital market stocks also saw significant selling pressure, as reports suggested that the SEBI board is likely to consider linking link options and cash exposure, according to sources to CNBC-TV18. If SEBI progresses with this move, it would increase cash market liquidity, while curtailing options liquidity. Further, SEBI may also discuss other steps to curb retail trading in options.

"In the current environment of heightened volatility and mixed market cues, traders are advised to follow a cautious "buy-on-dips" approach, particularly when using leverage. It is advisable to book partial profits during rallies and maintain tight trailing stop-losses to manage risk," said Mandar Bhojane, Technical Analyst, Choice Broking.

He added that fresh long positions should be considered only if the Nifty sustains above the 25,600 mark. While the broader market undertone remains cautiously bullish, it is crucial to keep a close watch on key technical levels and global developments.