On August 8, 2025, the Nifty 50 index experienced a notable decline, falling by 168 points to settle at 24,427.95. The broader Sensex index also dropped significantly, losing 535 points to close at 80,087.67. This downturn reflects ongoing concerns regarding escalating trade tensions between the United States and India, particularly following President Donald Trump‘s announcement of an additional 25% tariff on Indian exports, raising the total tariff rate to 50%.
Investor sentiment weakened as various sectors faced substantial selling pressure. Key sectors, including banking, IT, textiles, and seafood exports, reported losses, while a few specific stocks, such as NTPC, Titan Company, and Trent, managed to post gains amid the broader market downturn. As of the latest figures, the Nifty 50 now stands 1,733.1 points below its record high of 26,277.35, indicating a significant correction from its recent peaks.
The persistent market weakness is primarily attributed to the recent spike in trade tensions. President Trump’s tariff announcement has created uncertainty among investors, particularly affecting export-oriented sectors. According to data from CNBC TV 18, textiles were among the worst-hit sectors, with companies such as Gokaldas Exports, KPR Mill, and Trident experiencing declines between 0.7% and 3%. Shrimp exporters also faced challenges, with Avanti Feeds plummeting 4% and Apex Frozen Foods dropping nearly 3%.
Additionally, port operators, including Adani Ports, continued their downward trend, slipping 1.78% during today’s session. The Nifty Bank index fell 0.74% to 55,109.70, while the Nifty IT sector declined 0.71% to 34,480.50.
Despite the challenging environment, a handful of stocks in the Nifty 50 showed resilience. NTPC rose 2.09% to Rs. 336.65, while Titan Company gained 1.53% to Rs. 3,468. Trent added 1.04% to close at Rs. 5,358.50, and HDFC Life increased 0.67% to Rs. 760.80. In contrast, losses were notable for Adani Enterprises, which dropped 3.28% to Rs. 2,175.90, and Bharti Airtel, which fell 2.71% to Rs. 1,870.50.
The corporate earnings season has yielded mixed results, further complicating market sentiment. Kalpataru Projects International reported a significant profit surge of 154.4% to Rs. 213.6 crore, with revenue increasing 34.5% to Rs. 6,171.2 crore. In contrast, Crompton Greaves Consumer Electricals experienced a profit decline of 19.4%, with revenue falling 6.5% to Rs. 1,998.3 crore. Similarly, Sun TV Network reported weaker financials, with profits decreasing 5.4% to Rs. 529.1 crore.
Institutional flows have played a significant role in stabilizing the market. Foreign institutional investors (FIIs) recorded net outflows of Rs. 4,997.19 crore on August 7, following another heavy outflow of Rs. 4,999.10 crore the previous day. In contrast, domestic institutional investors (DIIs) provided a cushion against deeper losses, with substantial net inflows of Rs. 10,864.04 crore.
From a technical perspective, the Nifty 50 must close above 24,565 to avoid its sixth consecutive weekly loss, a streak not observed since early 2020. The Indian rupee traded flat at 87.68 per dollar, showing slight resilience despite the equity market’s struggles.
The current market environment highlights the challenges faced by Indian equities, with the Nifty 50 striving to maintain levels above 24,450. While domestic institutional buying offers some hope, the combination of trade war uncertainty and mixed earnings growth presents significant hurdles for market recovery. Investors are advised to adopt a cautious approach, focusing on fundamentally strong, domestically driven companies until there is greater clarity on trade negotiations and overall market conditions.
