Indian Markets Fall Amid Tariff Concerns And Sector Weakness

By Mandar in Indian Market Insights —

Market Summary: August 1, 2025

The Indian stock market experienced a downturn on August 1, 2025, with both the Sensex and Nifty closing lower.

  • The Sensex declined by approximately 585 points, closing around 80,600.
  • The Nifty fell below 24,600 at the session's close.

This decline was attributed to:

  • Concerns over new U.S. tariffs on Indian exports.
  • Sustained selling by Foreign Institutional Investors (FIIs).
  • Weak global market conditions.

Sectoral Performance

Several sectors were negatively impacted:

  • Pharma: Dropped significantly, approximately 2.8 percent, with losses from major companies like Sun Pharma, Dr. Reddy's Labs, and Cipla.
  • IT and Metals: Experienced declines due to investor concerns over tariffs.
  • Oil & Gas: Declined by around 1 percent.

Conversely, some sectors showed resilience:

  • FMCG and Media: Gained nearly 1 percent, with Hindustan Unilever leading the gains, surging about 8 percent on positive quarterly earnings.

Market Volatility and Technicals

  • The India VIX rose by 1.65 percent to 11.73, indicating increased market uncertainty.
  • Key support for the Nifty was near 24,500, with resistance around 24,800, suggesting cautious trading.
  • Trading volume was higher than the five-day average, showing active market participation, primarily on the downside.

Key Actions in Today's Market

  • Nifty closed with a loss of over 0.6 percent, falling below 24,600.
  • Pharma stocks were the hardest hit, declining by nearly 3 percent because of trade policies and sector concerns.
  • FMCG and media sectors saw gains, driven by strong earnings reports, particularly from Hindustan Unilever.
  • Foreign Institutional Investors (FIIs) continued their selling trend, with outflows exceeding Rs 5,500 crore, which put additional pressure on the market.
  • Increased volatility reflected cautious investor behavior due to global trade tensions and domestic economic factors.

Investors should watch global trade developments and key technical levels in the coming sessions as markets adapt to new tariff conditions and ongoing foreign investor trends.