Sensex, Nifty Fall, Extending Losses as Trump Tariffs Rattle Markets

Mumbai, August 7, 2025: Indian share markets continued their downward trend on Thursday morning, extending losses from the previous session. The decline was triggered by US President Donald Trump’s announcement of a new 50% tariff on Indian goods. This move is a reaction to India’s ongoing imports of Russian oil and is expected to hit key export industries like textiles and marine products hard.

Market Update at 10:15 AM IST

• Nifty 50 was down 90.90 points or 0.37%, trading at 24,483.30
• BSE Sensex dropped 305.39 points or 0.38% to 80,238.60

Both indices had already closed lower on Wednesday due to the same escalating trade tensions.

Tariff Shock: India Targeted

The new tariff, which doubles the duty on Indian goods to a total of 50%, places India alongside Brazil as one of the most heavily taxed US trade partners. In response, New Delhi issued a strong statement, calling the new duty “unfair, unjustified and unreasonable.”

Prime Minister Narendra Modi firmly said:  “Farmers’ interest is our top priority. India will not bow to pressure or compromise the welfare of its farmers, fishermen, or dairy farmers. If I have to pay a price for this, I am ready,” PM Modi said.

Top Losers and Gainers

Leading laggards on the Sensex:

• Adani Ports
• Tata Motors
• Kotak Mahindra Bank
• Eternal
• Tata Steel
• NTPC

Stocks showing resilience:

• Trent
• Titan
• Sun Pharma
• ITC

FII-DII Flow on August 6

On Wednesday, Foreign Institutional Investors (FIIs) were net sellers, pulling out a total of ₹4,999.10 crore from Indian stocks. Their buying activity was worth ₹11,242.19 crore, while their sales amounted to ₹16,241.29 crore.

In contrast, Domestic Institutional Investors (DIIs) provided a strong counterbalance, buying a net total of ₹6,794.28 crore. DIIs bought shares worth ₹16,760.64 crore and sold shares worth ₹9,966.36 crore.

Global Markets Mixed

Despite the tariff tensions, most Asian markets were trading higher, including South Korea’s Kospi, Japan’s Nikkei 225, and indices in China and Hong Kong. US markets also closed in positive territory on Wednesday. Meanwhile, the price of Brent crude oil rose by 1% to USD 67.56 per barrel, driven by global geopolitical risks.

Previous Session Recap

On Wednesday:

• Sensex fell 166.26 points to 80,543.99
• Nifty declined 75.35 points to 24,574.20

What Can Investors Expect Today?

1. Volatility May Stay High

• Markets are likely to remain volatile due to trade tensions between India and the US.
• Uncertainty around tariffs can cause frequent ups and downs in stock prices.

2. Export-Oriented Sectors May Suffer

• Sectors like textiles, marine products, and auto components may come under pressure.
• These industries are more exposed to the US market and could see profit cuts.

3. Domestic-Focused Companies Might Stay Stable

• Stocks that rely on local demand, such as FMCG and pharma, may perform better.
• These sectors are less affected by international trade issues.

4. Global Cues Offer Mixed Signals

• Asian and US markets showed strength, which may help limit downside pressure.
• However, investors should still be cautious as the global mood can change quickly.

5. FIIs May Continue Selling

• With foreign investors pulling out money, the market may face selling pressure.
• Domestic institutional buying may help absorb some of this, but not entirely.

6. Watch Key Support Levels

• Nifty has key support around 24,300–24,250.
• If this level breaks, more downside is possible.

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