Stock-Price-Todaywf

Tariffs, foreign outflows, and currency moves shape the mood , but domestic buyers keep the market afloat

The Indian stock market begins the day on a weaker note as global trade tensions create uncertainty for investors. The Nifty 50 starts the session lower, slipping by around 0.18 percent to nearly 24,550 points. The BSE Sensex also falls by about 0.24 percent, trading close to 80,425 in early hours.

Sectors like information technology and pharmaceuticals are among the worst performers in morning trade, both seeing declines of around half a percent. The drop is largely due to foreign investor caution, as global developments suggest more trade restrictions and lower demand for exports from India.

Impact of Tariffs and Foreign Selling

One of the biggest reasons for the weak sentiment is the announcement that the United States is doubling tariffs on several Indian exports to a total of 50 percent. This sparks concerns that export-focused companies will see a drop in profits, especially in manufacturing and technology-related goods.

Foreign portfolio investors, who have been selling Indian stocks for two weeks, continue to pull money out of the market. The latest figures show a net outflow of nearly Rs. 50 billion, marking the fourteenth consecutive trading day of withdrawals. This kind of selling not only affects the large companies in the main indices but also puts pressure on smaller and mid-sized firms.

However, domestic institutional investors, such as mutual funds and insurance companies, are stepping in to buy. They purchase more than Rs. 108 billion worth of shares, the highest level of buying in the past four months. This helps to reduce some of the market’s early losses.

Recovery in Late Trade

Although the market starts weak, a slight recovery is seen towards the end of the previous trading day. The Sensex manages to close with a gain of about 0.10 percent at 80,623, while the Nifty 50 ends the day up 0.09 percent at 24,596.

This late buying is driven by hopes that political talks between major world leaders could lead to a relaxation in trade tensions. News that the US President is planning to meet the Russian President raises expectations that some geopolitical issues may be resolved.

Sector and Stock-Specific Movements

Across the market, certain companies stand out due to positive news or strong results. AU Small Finance Bank gains about 2 percent after receiving permission from the Reserve Bank of India to operate as a universal bank. This approval means the bank can expand its range of services and compete with larger lenders.

Life Insurance Corporation of India (LIC) jumps by around 3.5 percent after reporting strong profit growth for the recent quarter. Investors welcome the improvement in earnings, which comes at a time when many financial companies are facing slow growth.

On the other hand, Bharti Airtel falls around 3 percent after large block deals are executed at lower-than-market prices. Telecom investors also remain cautious because of competitive pricing pressures in the industry.

Titan Company’s shares rise by up to 2 percent following strong quarterly performance and optimistic outlooks from market analysts. In contrast, Kalyan Jewellers faces a sharp drop of more than 7 percent despite some positive broker recommendations, suggesting that investors may be booking profits after earlier gains.

IndusInd Bank edges up slightly but remains far from its 52-week high, while Power Grid Corporation also rises modestly, supported by interest in defensive utility stocks.

Regulatory Changes and Index Updates

The Securities and Exchange Board of India (SEBI) introduces a new rule allowing joint inspections of stock brokers by stock exchanges and clearing corporations. This is expected to make regulatory checks more efficient, reduce duplication of work, and improve overall monitoring of market practices.

In addition, major index provider MSCI announces changes to its Global Standard Index, which will take effect after market hours on August 26, 2025. Four Indian companies—Hitachi Energy India, Swiggy, Vishal Mega Mart, and Waaree Energies—are set to be added. Such additions usually bring fresh investments from global funds that track these indices, which can boost the share prices of the included companies.

Currency Market and Economic Signals

The Indian rupee weakens slightly in early trade, falling by about five paise to 87.63 against the US dollar. The Reserve Bank of India steps in to control excessive volatility and prevent further decline. A weaker rupee can make imports more expensive, which can impact companies that rely heavily on imported raw materials.

Global developments, including interest rate trends in major economies and ongoing political tensions, are adding to the cautious mood in financial markets.

Broader Market Mood

Overall, the market is moving in a tight range, balancing between negative global factors and supportive domestic buying. The continuous foreign outflows are a concern, as they can put pressure on the rupee and weigh on investor confidence. At the same time, strong buying from domestic institutions is helping to keep the market from falling sharply.

Export-oriented sectors such as IT and manufacturing are likely to face challenges if trade tariffs remain high. Defensive sectors like healthcare, utilities, and certain financials may perform better in the near term.

Investors are also watching closely for updates on corporate earnings, government policy announcements, and any signs of easing global trade tensions. The inclusion of new companies in the MSCI indices may create short-term trading opportunities, as index funds adjust their portfolios.

Outlook

The short-term outlook for the Indian stock market remains cautious. Key factors to watch include any change in foreign investment flows, movement in the rupee, and signals from central banks in major economies. A possible reduction in geopolitical tensions could act as a positive trigger, while further tariff announcements or global economic slowdown warnings may drag sentiment lower.

Despite the challenges, the Indian market continues to show resilience due to strong domestic participation and the country’s long-term growth story. If domestic institutions keep buying at current levels, the market may avoid a steep correction even in the face of foreign selling.