The Indian stock market faced significant pressure on August 8, 2025, as the Nifty 50 index dropped by 168 points to close at 24,427.95. The Sensex followed suit, declining by 535 points to 80,087.67. This downturn was largely attributed to 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%.
Investors reacted cautiously, with most sectors witnessing declines. The Nifty Bank index fell by 0.74%, losing 411.45 points to settle at 55,109.70. The Nifty IT index also dropped by 0.71%, down 246.30 points to 34,480.50. The BSE SmallCap index experienced a loss of 146.65 points, or 0.28%, closing at 51,989.68. The Nifty 50 remains significantly below its record high of 26,277.35, currently 1,733.1 points away.
The ongoing trade war has raised concerns among market participants, particularly affecting export-oriented sectors such as textiles and seafood. Companies like Gokaldas Exports, KPR Mill, and Avanti Feeds reported losses ranging from 0.7% to 4%. Port operators, including Adani Ports, also faced declines, slipping 1.78% during today’s session.
Despite the overall market weakness, some stocks managed to gain traction. Notably, NTPC rose by 2.09% to Rs. 336.65, while Titan Company saw an increase of 1.53% to Rs. 3,468. Other gainers included Trent, which added 1.04% to close at Rs. 5,358.50, and HDFC Life, which gained 0.67% to reach Rs. 760.80.
As the corporate earnings season continues, results have shown mixed performance. Kalpataru Projects International reported a remarkable profit increase of 154.4% to Rs. 213.6 crore, alongside a revenue jump of 34.5% to Rs. 6,171.2 crore. In contrast, Crompton Greaves Consumer Electricals experienced a profit decline of 19.4%, while Sun TV Network reported a 5.4% drop in profit.
Looking at the broader market dynamics, foreign institutional investors (FIIs) continued to exert downward pressure with net outflows of Rs. 4,997.19 crore on August 7, following a previous outflow of Rs. 4,999.10 crore. In contrast, domestic institutional investors (DIIs) provided some stability with net inflows of Rs. 10,864.04 crore.
Market analysts highlight that the Nifty 50 could face its sixth consecutive weekly loss unless it manages to close above 24,565, a threshold crucial for breaking the current losing streak. This pattern has not been seen since February to March 2020, when the index experienced seven straight weeks of decline.
The Indian rupee remained relatively stable, trading at 87.68 per dollar, slightly stronger than its previous close of 87.70. The challenges facing the Indian equities market are evident, as trade uncertainties and uneven corporate earnings contribute to a cautious investor sentiment.
Looking ahead, market participants will need to monitor developments in US-India trade negotiations, the trajectory of corporate earnings, and broader global market trends. The interplay of these factors will be critical in shaping the outlook for Indian equities in the coming days. Investors are advised to adopt a cautious approach, focusing on fundamentally strong and domestically oriented companies until greater clarity emerges.