Market Opens Lower on New U.S. Tariffs
On August 1, 2025, India’s benchmark indices Nifty 50 and BSE Sensex logged gap-down openings—Nifty down ~51 points (−0.21 %), Sensex off by ~179 points (−0.22 %)—as former U.S. President Donald Trump’s 25 % tariffs on Indian imports took effect. The market sentiment turned cautious amid weak global cues and trade tension escalation.1
Which Sectors Led the Decline?
The pharmaceutical sector was hit hardest—Nifty Pharma index shed ~2.75 %. IT stocks fell ~0.80 %, metal majors slipped ~0.99 %. Meanwhile, FMCG stocks bucked the trend, advancing ~1.46 %, led by gains in Hindustan Unilever (+4.45 %).2
Stock Movers: Leaders & Laggards
Among top gainers: Hindustan Unilever, Tata Consumer Products, Hero MotoCorp, Maruti Suzuki and Trent. Under pressure: Dr. Reddy’s (–1.41 %), Cipla, ONGC, L&T and Tata Steel reflected broad selling.3
Full-Day Selloff & Weekly Slide
By close, Sensex had declined ~585 points (≈0.72 %) to 80,599.91, while Nifty ended at 24,565.35—a drop of ~0.82 % (≈203 points), touching intraday lows unseen since June 4 (~24,530).4
Wider Impact: Tariffs, FIIs & Inflation Pressures
Analysts flagged a combination of U.S. tariff shock, foreign institutional outflows, and dollar strength as catalysts. India VIX spiked ~4 %, signaling heightened volatility. FIIs continued selling—₹55–60 billion pulled last session, amid concerns of slowing global growth.5
Rupee Wobble & Growth Outlook
The rupee weakened to ₹87.74/USD on July 31, then slightly recovered to ₹87.54 by August 1—marking its worst weekly slide (~1.2 %) since December 2022. Economists warned that the tariff shock could shave off up to 40 basis points from India’s 2025‑26 GDP.6
Technical Levels & Trading Advice
Experts highlighted Nifty’s immediate resistance at 24,800 and support around 24,600–24,500. Traders were advised to use a ’sell-on-rise’ strategy, book partial gains, and avoid leveraged long positions unless Nifty convincingly breaches 25,000.7
Quick Facts & Quiz Trivia
- Tariff Date: U.S. tariffs on Indian exports effective from **August 1, 2025**.
- Nifty open lower by ~51 points (−0.21 %), Sensex down ~179 pts (−0.22 %).
- Nifty Pharma plunged ~2.75 %, IT down ~0.80 %, Metals ~0.99 %.
- Weekly decline: Nifty fell ~2.6 %, Sensex ~2.65 % (week-ended Aug 1).8
- India VIX rose ~4 % indicating heightened risk; FII outflows ~₹55 billion in a single session.9
- Rupee’s weekly drop ~1.2 %, low at ₹87.74/USD.10
What Lies Ahead?
Markets are awaiting RBI’s next moves and further trade negotiations. While the tariff shock is seen as transactional, prolonged uncertainty may pressure capital inflows and corporate sentiment. Analysts remain cautiously optimistic, citing India’s strong domestic demand and trade diversification efforts.11
Source: International Business Times