Sensex, Nifty Recover to Close Higher Despite Trump’s 50% Tariff Blow to Indian Exports

Mumbai, August 7, 2025: Indian equities saw a strong recovery today, turning around early losses caused by the US’s decision to double tariffs on Indian goods. This relief rally, driven by strong domestic institutional buying and gains in key large-cap stocks, helped both benchmark indices close slightly higher.

The BSE Sensex closed the day 79.27 points or 0.10% higher at 80,623.26. Similarly, the NSE Nifty 50 ended 21.95 points higher, a rise of 0.09%, closing at 24,596.15. The market had opened significantly lower following the US’s announcement of an additional 25% duty on Indian exports linked to Russian oil, which brought the total tariff to 50%. However, a positive sentiment from global markets and robust buying from domestic institutional investors helped the market overcome this early weakness.

What Can Investors Expect Tomorrow?

Today, the market started weak because of the US’s 50% tariff on Indian exports, but it recovered later. This shows that investors are careful, but not too worried yet. Indian institutions (DIIs) are buying strongly, which is helping the market stay stable even though foreign investors (FIIs) are selling. Export-related sectors like textiles and leather may still feel pressure. Volatility may continue, and investors will be watching out for government actions, global news, and company results tomorrow.

The Developments

US Tariffs: India in Focus

India has officially criticised the new tariffs, calling the action “unfair, unjustified and unreasonable.” The decision puts India among the highest-taxed US trade partners, a group that also includes Brazil. The new tariffs are expected to negatively impact key export sectors, particularly textiles, leather, and marine products.

FII-DII Data: Contrasting Flows

On August 6, 2025, there were contrasting flows from institutional investors. Foreign Institutional Investors (FIIs) continued their selling trend, pulling a net total of ₹4,999.10 crore out of Indian equities. Their total sales were ₹16,241.29 crore, while their purchases were ₹11,242.19 crore. This was countered by Domestic Institutional Investors (DIIs), who showed strong support with net inflows of ₹6,794.28 crore. DIIs bought shares worth ₹16,760.64 crore and sold ₹9,966.36 crore.

Top Nifty 50 Movers

Leading Gainers:

• HEROMOTOCO soared 4.27% to ₹4,666.10
• TECHM gained 1.99%, closing at ₹1,488.10
• JSWSTEEL rose 1.94%
• ETERNAL, WIPRO, and HCLTECH also posted strong gains

Notable Losers:

• ADANIENT dropped 2.36% to ₹2,245.90
• ADANIPORTS declined 1.43%
• GRASIM, HINDUNILVR, TRENT, and TITAN also ended lower

Crude Oil Movement

As of 3:57 PM IST, Brent crude oil had climbed by 0.72% to USD 67.37 per barrel. Intraday prices for Brent crude ranged from USD 66.68 to USD 67.58. This increase in price reflects ongoing geopolitical concerns and potential disruptions to the oil supply.

Global Market Overview: Asia Closes Strong

Supportive cues from Asia helped stabilise domestic markets:

• Nikkei 225 (Japan): +228.14 pts (0.56%) at 41,023.00
• Hang Seng (Hong Kong): +88.37 pts (0.35%) at 24,999.00
• KOSPI (South Korea): +29.54 pts (0.92%) at 3,227.68
• Shanghai Composite (China): +5.68 pts (0.16%) at 3,639.67

These gains provided crucial relief to investor sentiment after the tariff shock.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations