Stock Exchange Now: Fall of Sensex by 166 Points to 80,543 Points
The Indian stock market opened lower on August 7, 2025, as global geopolitical developments continued to impact investor sentiment. The BSE Sensex started trading around 80,400, and the NSE Nifty 50 traded below 24,550.
The mood on Dalal Street remained subdued due to weak global cues and fresh trade tensions between India and the United States. Former U.S. President Donald Trump announced plans to increase tariffs on Indian imports up to 50%. This decision has imposed a 50% tariff on Indian imports, with an initial 25% tariff effective August 7, 2025, and an additional 25% starting August 27, due to India's ongoing purchases of Russian oil.
This tariff decision has caused significant disruptions in Indian exports, particularly affecting export-oriented sectors such as textiles, apparel, shrimp, organic chemicals, jewelry, and auto ancillaries. Export-oriented companies are facing significant pressure and uncertainty, with volatility expected to persist for several months.
The Nifty Midcap 100 and Smallcap 100 also traded lower by around 0.44%. Nestlé India underperformed significantly, slipping by 1.49% to ₹2,233.30.
The Reserve Bank of India maintains its policy stance, keeping interest rates unchanged and adopting a neutral approach. The RBI's decision signals cautiousness about inflation and external risks. However, the tariff decision has led investors to interpret the policy decision as a sign that monetary easing may not be imminent.
Investors are cautious, often adopting a wait-and-watch approach pending further developments such as US-India trade negotiations or broader market corrections that could present buying opportunities. Domestic institutional investors continue to support the market selectively but avoid aggressive buying. Foreign institutional investors turn net sellers for the day, reducing exposure amid rising global risks.
The ongoing earnings season continues to be a significant factor influencing stock movements. Investors focus on corporate results for Q1 FY26 to gauge the health of company fundamentals. Within the sectoral landscape, banks, metals, and financials remained under pressure. Sectors like banking, real estate, and autos show limited movement following the RBI's announcement.
Until global uncertainties reduce and trade tensions ease, markets are likely to remain range-bound with a negative bias. The Nifty remains under pressure as it struggles to hold above 24,550, with resistance near the 24,600-24,650 zone.
In the days ahead, investor focus shifts to upcoming economic indicators, policy updates, and global cues for direction. Domestic events such as GST collections, monsoon performance, and political updates ahead of state elections play a role in shaping medium-term investor behavior.
References: [1] [Link to source 1] [2] [Link to source 2] [3] [Link to source 3] [4] [Link to source 4] [5] [Link to source 5]
- Due to the increased tariffs on Indian imports, the volatility in the stock market is expected to continue, making the decision of when to invest in the stock-market sector a critical one for investors.
- The ongoing trade tensions between India and the United States, along with the tariffs on imports, have negatively impacted various export-oriented sectors, such as textiles, apparel, shrimp, and automobile ancillaries, potentially influencing the future financing needs of these companies.
