Indian Market Ends Day Lower Amid Tariff Concerns

By Mandar in Indian Market Insights —

Indian Stock Market Overview - August 8, 2025

The Indian stock market experienced a downturn on August 8, 2025.

  • The Sensex fell by 765.47 points (0.95%), closing at 79,857.79.
  • The Nifty 50 dropped below the 24,400 mark.

The primary factor behind this decline was the imposition of new tariffs by the U.S. administration.

  • The U.S. announced an increase of tariffs on Indian goods up to 50%.
  • These tariffs primarily targeted India's imports of Russian oil and defense equipment.

Key Market Actions Today

  • Impact of Tariffs: The new U.S. tariffs significantly affected investor confidence, leading the Nifty to a three-month low.
  • Technical Levels:
    • The Nifty breached the 24,400 support level, but found support around 24,350.
    • Maintaining above 24,350 is crucial to prevent further decline.
    • The 100-day EMA near 24,595 acted as both resistance and support.
    • The Nifty is trading below its 20-day and 50-day EMAs (24,850-24,900), indicating a short-term bearish trend.
  • Sector Performance:
    • The IT, media, and pharmaceutical sectors showed gains, with increases of 0.5% to 1%.
    • Stocks like Tech Mahindra, Wipro, and Eternal performed well.
    • Significant declines were seen in heavyweights like Adani Enterprises, Adani Ports, and Tata Motors.
  • Nifty Next 50 Movement:
    • The Nifty Next 50 index opened at 66,400 and experienced volatility throughout the day.
    • This reflects uncertainty in the midcap stock segment.
  • Future Outlook:
    • If the Nifty stays above the 24,350-24,400 range and the Bank Nifty holds support near 55,000-54,900 (around 100-day EMA), a cautious recovery towards 24,700-24,900 and Bank Nifty levels near 56,000 is possible.
    • Failure to maintain these support levels could trigger further selling.

In conclusion, while the imposition of tariffs has created market volatility and bearish pressure, certain sectors are demonstrating strength. Technical support levels are also providing some buffer. The market's future performance will depend heavily on its ability to maintain these support levels and its reaction to the ongoing trade tensions.