The Indian equity benchmark indices, the BSE Sensex and the NSE Nifty50, are poised to begin the week on a subdued note, tracking mixed signals from Asian markets. Investor sentiment remains on edge as U.S. President Donald Trump confirmed that the “reciprocal” tariffs will take effect from August 1, not July 9, for countries that haven't finalised a trade deal. At 8:10 AM, the GIFT Nifty futures were trading 26 points lower at 25,501, indicating a weak start for the Indian stock markets.

“There are reports of a possible interim trade deal between the U.S. and India before the July 9th tariff deadline. If that happens, that would be a positive. The regulatory action on Jane Street and its implications will be closely watched by the market. The volume of derivative trading is likely to take a hit, impacting stock exchanges and some brokerages. This has implications for their stock prices, too,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

“The short-term issues are unlikely to have any long-term impact on the market. Short-term dips can be used by long-term investors to buy high quality stocks, preferably in fairly valued large-caps. Q1 results expectations are modest. So watch out for the outperformers," he added.

In the global markets, Asian stocks witnessed a bearish trend with sentiment remaining fragile as the 90-day tariff pause nears its end, raising uncertainties regarding global trade negotiations. Japan’s benchmark Nikkei 225 declined 0.5%, South Korea’s Kospi traded flat, while Hong Kong’s Hang Seng index tumbled 0.4%. Australia’s ASX 200 was down 0.2%, while China’s Shanghai Composite slipped 0.1%.