Indian Market Opens Cautiously Amid Tariff Concerns

By Mandar in Indian Market Insights —

Indian Stock Market Outlook - Week of August 11, 2025

The Indian stock market commenced the week cautiously, with the Nifty 50 and Sensex anticipating a muted opening on Monday, August 11, 2025.

Investor sentiment is currently subdued due to several factors:

  • Fresh concerns regarding U.S. tariff hikes.
  • Muted corporate earnings reports.
  • Ongoing foreign institutional investor (FII) outflows.

The GIFT Nifty index showed a slight increase of 0.2% during pre-opening, potentially indicating a firm market opening.

Market Performance Review

On Friday, both the Nifty and Sensex experienced significant declines:

  • The Nifty fell below the 24,400 mark, closing around 24,363, a level not seen since early May.
  • The Sensex dropped nearly 765 points, closing around 79,858.

This marked the sixth consecutive weekly loss, the longest losing streak in five years. Selling pressure was observed across various sectors.

Sector Performance

Major sectors that faced selling pressure included:

  • Autos
  • Metals
  • IT
  • Pharma
  • Realty
  • Banks

Major losers included Adani Enterprises, Bharti Airtel, and Shriram Finance, while Titan and NTPC managed gains.

Technical Analysis

From a technical perspective:

  • The Nifty breached key support levels, including the 100-day moving average and a strong base close to 24,500, indicating bearish momentum.
  • Next support zone is around 24,200-24,150, aligning with the 200-day exponential moving average and a previous gap.
  • Further downside could be expected if the index sustains below Friday's lows.
  • Resistance is around 24,500-24,600 during a rebound.
  • The Bank Nifty shows similar pattern with resistance around 55,600-55,700 and support between 54,000 and 54,500.

A notable shift occurred on August 8 when foreign portfolio investors turned net buyers for the first time in weeks, acquiring shares worth about Rs 1,932 crore, signaling a possible pause or reversal in risk aversion. Domestic institutional investors also remained strong buyers.

Factors to Watch This Week

Key drivers to watch this week include:

  • Global trade developments and their impact on tariff policies.
  • Earnings updates.
  • Technical levels, particularly around 24,200 on the Nifty.

Market participants remain alert for signs of stabilization or further decline amid mixed global cues and persistent domestic uncertainties.