Sensex-Drops-to-80,630;-Nifty-at-24,600

Sensex slips below 80,650 & Nifty hovers near 24,600 as global trade tensions rise

The Indian stock market today (Tuesday, August 5, 2025) opens under a cloud of caution. The Sensex drifts downward by more than 300 points, landing around the 80,600 – 80,630 range, while the Nifty 50 falls beneath 24,650, trading close to 24,600. The mood turns cautious from the start, with equity benchmarks reflecting growing investor anxiety amid renewed tariff threats from the United States.

Tariff Tensions and Market Sentiment

Markets respond nervously to US President Donald Trump’s announcement of potentially substantial tariffs on Indian goods, tied to India’s ongoing import of Russian oil. Delhi quickly rejects the move as “unjustified” and pledges to protect its economic interests. That escalation reignites fears of global trade disruption and contributes significantly to the negative opening on Dalal Street.

This trade threat weighs heavily on foreign investor sentiment. Overseas funds have been showing caution for several sessions despite healthy inflows last month. Investors wait for clarity on US policy before taking fresh positions, which results in light volumes and selective selling across major sectors.

Global Cues and Domestic Drivers

Global cues remain mixed. Asian peers, including Japan and South Korea, show modest gains on hopes of an eventual US Federal Reserve rate cut later this year. However, the strength of the US dollar and broader trade-related uncertainty keep Indian equities under pressure. Emerging market volatility and the risk of reduced foreign inflows add to the cautious tone.

On the domestic front, quarterly results continue to influence stock-specific movements. Some companies report strong growth, while others disappoint, creating divergence in market behavior. The Reserve Bank of India’s ongoing Monetary Policy Committee meeting also keeps participants on alert, as any signal regarding inflation control or interest rate moves could shift market momentum.

Sector Performance and Key Stock Moves

Banking and financial stocks remain under pressure. HDFC Bank, ICICI Bank, and Reliance Industries slip nearly 1%, while most other financial names trade lower. A bright spot emerges in IndusInd Bank, which jumps nearly 5% after announcing Rajiv Anand as its new CEO, lifting investor confidence in its leadership and governance approach.

In corporate action, Siemens Energy gains over 2% on strong profit growth and new order wins, while Butterfly Gandhimathi Appliances rallies around 8% after doubling its quarterly profit. On the downside, Triveni Turbine tumbles almost 7% following a weak earnings report. Marico dips close to 2% despite posting a modest increase in profit, while Godfrey Phillips surges nearly 10% after a strong 56% year-on-year profit rise and a 2:1 bonus share announcement. Delhivery also climbs over 7% after reporting improved margins in its quarterly numbers.

All major sectoral indices trade in the red, with IT, Pharma, Oil & Gas, Insurance, and Realty showing notable weakness. Mid-cap and small-cap segments display relative stability but remain slightly negative in line with the broader market mood.

Market Outlook

The near-term stock market outlook remains cautious as investors await clarity on US trade policy, RBI announcements, and global macroeconomic developments. Any decisive statement from the central bank or movement in the US dollar could steer the next trend for equities.

Markets are likely to trade in a range with intermittent volatility. Large-cap stocks with strong balance sheets may offer opportunities on declines, while broader participation remains limited. Retail interest continues to support certain segments, and ongoing IPO activity adds pockets of excitement despite the overall cautious tone.