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Sensex dives 800 points, Nifty slips below 24,650 amid US tariff shock and soaring crude prices

The Indian stock market opens today with heavy selling pressure as investors react to fresh global developments. The Sensex plunges nearly 800 points to touch around 80,695, while the Nifty 50 drops below 24,650. Mid-cap and small-cap indices face even sharper declines of up to 2 percent. Within the first hour of trading, the overall market capitalization of BSE-listed companies falls by nearly Rs. 5 lakh crore, reflecting widespread investor panic.

Impact of Global Factors

The market downturn is driven mainly by global cues. A sudden announcement of a 25 percent tariff by the United States on Indian imports creates fear of a trade slowdown. This move also coincides with penalties related to Russian oil imports, adding to the uncertainty for companies dependent on global trade. Rising crude oil prices for the fourth straight day further add pressure on Indian markets, particularly on oil and gas companies.

Investors also remain cautious ahead of the U.S. Federal Reserve's upcoming policy decision. Any indication of higher interest rates can trigger further foreign capital outflows from emerging markets like India, deepening market volatility.

Performance of Major Indices

In the early session, the Sensex trades near 80,870, down almost 0.75 percent, and the Nifty hovers around 24,668, down 0.73 percent. Both indices are trading well below the previous day's closing levels, which saw a mild recovery supported by strong results from Larsen & Toubro. Gift Nifty futures also indicate bearish sentiment, dropping more than 120 points.

The market's performance reflects a shift from the cautious optimism observed yesterday. On July 30, the Sensex closed at 81,482 and the Nifty at 24,855, aided by L&T’s earnings. However, today’s early sell-off highlights how quickly sentiment can reverse under global pressure.

Sectoral Weakness

All major sectors are open in the red today. Export-driven sectors such as IT, pharmaceuticals, and textiles see sharp declines as traders fear that new tariffs could impact overseas earnings. Oil and gas stocks fall due to rising global crude prices, which may increase costs and reduce margins for domestic companies.

Banking and telecom stocks also trade lower. IT companies, which had previously benefited from the weak rupee and global demand, now face selling pressure as investors reduce exposure to export-reliant businesses.

Stock-Specific Movements

A few heavyweight stocks show mixed performance. Infosys inches up slightly to Rs. 1,519, outperforming some peers but still far from its 52-week high. Bharti Airtel rises marginally to Rs. 1,931 but remains below its recent peak. On the other hand, Reliance Industries falls to Rs. 1,409.90, and Tata Steel slips to Rs. 161.35, reflecting weakness in energy and metal counters.

Despite minor gains in select blue-chip stocks, the overall market breadth remains weak. The number of declining stocks far exceeds advancing ones, underlining the dominance of bearish sentiment.

Foreign and Domestic Investor Activity

Foreign institutional investors continue to sell Indian equities, contributing to the market’s weakness. Outflows from foreign investors have increased over the past week as global uncertainty rises. Domestic institutional investors, who often act as a stabilizing force, have been buying selectively, but their efforts are insufficient to offset the heavy selling from overseas.

Technical and Historical Context

From a technical perspective, the Nifty recently showed resistance near 24,900 to 25,000. The index’s failure to hold this range today signals potential downside toward 24,600 levels. Breaking below this support zone could lead to further declines in the near term.

Historically, the market has been volatile throughout 2025. The Sensex touched an all-time high of 85,978 in September 2024, but a series of global shocks and foreign withdrawals have pulled it down by nearly 12 percent this year. While a recovery attempt was visible in March 2025, recurring global trade tensions now threaten to stall any sustainable uptrend.

Market Outlook

The Indian stock market faces a challenging day with selling pressure across all sectors. Rising US tariffs, higher crude oil prices, and concerns about interest rate decisions create a perfect storm for risk-averse behavior. Market direction in the coming days will likely depend on the US Federal Reserve’s guidance, any updates on trade negotiations, and the movement of global commodity prices.

If the market holds above 24,600 on the Nifty and 80,500 on the Sensex, some stabilization may occur. However, sustained recovery will require positive global triggers and renewed buying interest from foreign investors. Until then, volatility remains the defining feature of the Indian stock market today.