The Indian stock market faced significant pressure on August 8, 2025, as the Nifty 50 index fell by 168 points to close at 24,427.95. The Sensex also experienced a notable drop, sliding 535 points to 80,087.67. This decline marks continued investor concern over 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%.
Sector-wide declines characterized the trading session, with several key industries, including banking, information technology, textiles, and seafood exports, facing substantial selling pressure. The Nifty Bank index fell 411.45 points, down 0.74% to 55,109.70, while the Nifty IT index decreased by 246.30 points or 0.71%, settling at 34,480.50. The BSE SmallCap index also lost ground, down 146.65 points to 51,989.68.
Despite the overall market downturn, a few companies managed to post gains. According to Moneycontrol, NTPC shares rose by 2.09% to Rs. 336.65, while Titan Company saw an increase of 1.53%, closing at Rs. 3,468. Additionally, Trent shares climbed 1.04% to Rs. 5,358.50, and HDFC Life gained 0.67% to Rs. 760.80.
Market analysts noted that the Nifty 50 must close above 24,565 to avoid a sixth consecutive weekly loss, a situation reminiscent of the February-March 2020 period when the index saw seven weeks of corrections. Concerns over trade tensions are compounded by a mixed earnings season, which has further complicated the market’s outlook.
The sector most adversely affected by the trade developments was textiles, with companies such as Gokaldas Exports, KPR Mill, and Trident experiencing declines ranging from 0.7% to 3%. In the seafood export sector, Avanti Feeds dropped 4%, while Apex Frozen Foods fell nearly 3%. Additionally, port operator Adani Ports continued its downward trend, slipping 1.78%.
Earnings reports from corporations added both optimism and caution to market sentiment. For instance, Kalpataru Projects International reported a remarkable profit surge of 154.4% to Rs. 213.6 crore, alongside a revenue increase of 34.5% to Rs. 6,171.2 crore. Similarly, Medi Assist Healthcare Services saw a 19% rise in profit, reaching Rs. 22.4 crore, while revenue grew by 13.6% to Rs. 190.6 crore.
In contrast, Crompton Greaves Consumer Electricals reported a profit decline of 19.4% to Rs. 122.3 crore, alongside a 6.5% drop in revenue to Rs. 1,998.3 crore. Sun TV Network also posted weaker figures, with profits falling 5.4% to Rs. 529.1 crore and revenue dipping 1.8% to Rs. 1,290.3 crore.
Foreign institutional investors (FIIs) further contributed to the market’s struggles, with net outflows of Rs. 4,997.19 crore recorded on August 7, following a previous outflow of Rs. 4,999.10 crore. In contrast, domestic institutional investors (DIIs) provided some support with substantial net inflows of Rs. 10,864.04 crore.
The Indian rupee showed slight resilience, trading flat at 87.68 per dollar, a marginal improvement from the previous close of 87.70.
As the market grapples with these challenges, investors are advised to adopt a cautious approach, focusing on fundamentally strong and domestically oriented companies. The ability for the Nifty 50 to close above 24,565 will be crucial in determining the potential for market recovery. Looking ahead, key factors include developments in US-India trade negotiations, the trajectory of corporate earnings, and trends in global markets and commodities.
