The Indian stock market faced significant pressure on August 8, 2025, with the Nifty 50 dropping by 168 points to close at 24,427.95. The Sensex also fell sharply, losing 535 points to settle at 80,087.67. The declines were primarily driven by escalating trade tensions between the United States and India, particularly following President Trump’s announcement of an additional 25% tariff on Indian exports.
Investor sentiment weakened as concerns grew over the potential impact of these tariffs on various sectors. The Nifty Bank index saw a decline of 411.45 points or 0.74%, while the Nifty IT index dropped 246.30 points or 0.71%. The broader BSE SmallCap index also suffered, falling by 146.65 points or 0.28%.
Market Analysis and Sector Performance
The market opened cautiously, continuing its losing streak. At the start of the session, the Nifty 50 was trading 1,733.1 points below its record high of 26,277.35, indicating a significant correction from recent peaks. The primary catalyst for this market decline was the uncertainty stemming from the heightened trade conflicts. President Trump’s tariff decision raised the total tariff on Indian goods to 50%, causing alarm among market participants.
According to data from CNBC TV 18, the sectors most affected included textiles and seafood exports. Companies like Gokaldas Exports, KPR Mill, Trident, and Welspun Living recorded losses ranging from 0.7% to 3%. Similarly, shrimp exporters such as Avanti Feeds and Apex Frozen Foods saw their shares drop by 4% and nearly 3%, respectively. Port operators, including Adani Ports, continued to trend downwards, losing 1.78% during the session.
Despite the overall market gloom, a few stocks managed to record gains. NTPC rose 2.09% to Rs. 336.65, Titan Company gained 1.53% to Rs. 3,468, and Trent added 1.04% to close at Rs. 5,358.50. HDFC Life and Tata Consumer Products also saw modest increases, reflecting the resilience of certain companies amid broader market challenges.
Corporate Earnings and Institutional Flows
The ongoing earnings season has produced mixed results, further complicating market sentiment. Kalpataru Projects International reported a remarkable profit surge of 154.4% to Rs. 213.6 crore, with revenues increasing by 34.5% to Rs. 6,171.2 crore. In contrast, Crompton Greaves Consumer Electricals faced a 19.4% decline in profits, while Sun TV Network reported a 5.4% drop, raising concerns about consumer demand within these sectors.
Institutional flows played a crucial role in market dynamics. Foreign institutional investors (FIIs) recorded significant 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 support with substantial net inflows of Rs. 10,864.04 crore, helping to cushion the market against deeper losses.
The Nifty 50 is at risk of marking its sixth consecutive weekly loss unless it manages to close above 24,565. This pattern has not been seen since early 2020, when the market faced similar pressures. The Indian rupee remained relatively stable at 87.68 per dollar, slightly stronger than its previous close of 87.70.
As the market navigates these turbulent waters, investors are advised to adopt a cautious stance. Focus should remain on fundamentally strong, domestically oriented companies while keeping a close watch on developments in US-India trade negotiations and the trajectory of corporate earnings. The ability of the Nifty 50 to close above 24,565 will be a key indicator of its potential recovery from the current downturn.