Markets opened on a weak note Friday morning, with the Sensex opening at 81,074.41, lower than its previous close of 81,185.58, and slipping further to 81,009.22 at 9.45 am, down 176.36 points or 0.22 per cent. The Nifty 50 also opened at 24,734.90 compared to its previous close of 24,768.35, and declined to 24,705.15 at 9:45 am, down 63.20 points or 0.26 per cent, as investors grappled with fresh concerns over US President Donald Trump’s tariff announcements and continued foreign institutional investor selling.
The benchmark indices reflected the cautious sentiment indicated by GIFT Nifty, which signalled a significant downtick of around 128 points.
“GIFT Nifty signals a weak start as bearish pressure mounts with Nifty facing stiff resistance at 25000,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. “Key drags include Trump’s tariff hike, hawkish Fed signals, soft Q1 earnings, FII selling, and a deteriorating technical setup.”
The market weakness comes as Foreign Institutional Investors extended their selling streak for the ninth consecutive session on July 31, offloading equities worth ₹5,588 crore. However, Domestic Institutional Investors remained net buyers for the 19th straight session, investing ₹6,372 crore into the market, providing some support to the indices.
Among the top gainers on the Nifty 50, Eicher Motors led the pack with a surge of 4.04 per cent to ₹5,616.50, followed by Hindustan Unilever which gained 3.46 per cent to ₹2,608.50. Nestle India advanced 1.43 per cent to ₹2,279.90, while Asian Paints climbed 1.31 per cent to ₹2,427.60. Kotak Mahindra Bank rounded out the top five gainers with a 0.90 per cent increase to ₹1,996.50.
On the losing side, Sun Pharma was the worst performer, declining 3.84 per cent to ₹1,641.10. Mahindra & Mahindra fell 2.35 per cent to ₹3,127.70, while Cipla dropped 2.20 per cent to ₹1,520.40. Tata Steel and JSW Steel completed the list of top losers, falling 2.08 per cent and 1.91 per cent respectively.
The tariff concerns particularly affected export-oriented sectors. “The 25 per cent tariff hike by the US, along with possible penalties, is a serious setback for several of India’s key export sectors,” explained Narender Singh, Smallcase Manager & founder GrowthInvesting. “Textiles, gems and jewellery, auto parts, and seafood — industries that together send billions of dollars’ worth of goods to the US — are suddenly facing a sharp drop in competitiveness.”
Technical analysts remained cautious about the market’s near-term outlook. “Indian benchmark indices are expected to open on a negative note today, as indicated by the GIFT Nifty,” noted Hardik Matalia, Derivative Analyst at Choice Equity Broking Private Limited. “The Nifty 50 remains vulnerable unless it sustains a move above the 24,800 mark.”
The banking sector showed relative resilience, with Bank Nifty displaying strength in the previous session by rebounding nearly 413 points. “Key support levels are now seen at 55,730, followed by 55,500 and 55,000,” Matalia added. “Holding above these levels could provide scope for further upside.”
Individual stocks in focus included TCS, which faced concerns over potential layoffs of 12,000 employees, and Tata Motors, which declined 3.45 per cent amid speculation about an Iveco deal. Adani Enterprises reported a significant 49.5 per cent drop in Q1 profit, while HUL showed strength with a 5.6 per cent increase in Q1 net profit.
The commodity markets reflected mixed sentiment, with crude oil futures trading higher despite the tariff concerns. October Brent oil futures were at $71.90, up 0.28 per cent, while WTI crude gained 0.26 per cent to $69.44. On the domestic front, August crude oil futures on MCX traded at ₹6,075, up 0.38 per cent.
Market strategists advised caution in the current environment. “Given the prevailing conditions of elevated volatility and conflicting technical signals, traders are advised to follow a cautious ‘sell-on-rise’ approach,” Matalia recommended. “Fresh long positions should be considered only if the Nifty manages to sustain above the 25,000 mark.”
VLA Ambala, Co-Founder of Stock Market Today, highlighted broader concerns about market valuations and economic vulnerabilities. “India’s market cap-to-GDP ratio has also increased to 140 per cent,” Ambala noted. “Being a crude-import-dependent economy, India remains highly vulnerable to energy price shocks, supply disruptions, and trade threats.”
The pharmaceutical and energy sectors appeared relatively insulated from the tariff impact. “On the bright side, pharma and energy exports seem safe for now, which offers some cushion,” Singh observed, though he cautioned that “the pain could deepen in the coming quarters” without policy intervention.
As markets continue to navigate the challenging environment of global trade tensions and domestic institutional flow dynamics, investors remain focused on key technical levels and upcoming earnings announcements from major corporations including LIC Housing Finance, ITC, UPL, Godrej Properties, and others scheduled to report results.
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Published on August 1, 2025
