The Indian stock market faced significant pressure on August 8, 2025, as the Nifty 50 dropped by 168 points, settling at 24,427.95. The Sensex also saw a decline, falling 535 points to 80,087.67. This downturn is largely attributed to escalating trade tensions between the United States and India, following President Donald Trump‘s announcement of an additional 25% tariff on Indian exports, which raises the total tariff rate to 50%.
Investors reacted cautiously to this announcement, resulting in broad-based declines across several sectors. The Nifty Bank index fell by 411.45 points, or 0.74%, to 55,109.70, while the Nifty IT index dropped by 246.30 points, or 0.71%, to 34,480.50. The BSE SmallCap index also faced losses, slipping 146.65 points, or 0.28%, to 51,989.68.
Sector Performance and Notable Stock Movements
Despite the overall market weakness, a few stocks managed to maintain upward momentum. NTPC rose by 2.09% to Rs. 336.65, while Titan Company gained 1.53%, reaching Rs. 3,468. Trent also saw a modest increase of 1.04% to close at Rs. 5,358.50.
Conversely, several sectors faced significant declines. In the textiles sector, companies like Gokaldas Exports, KPR Mill, and Trident experienced losses ranging from 0.7% to 3%. Additionally, shrimp exporters faced sharp declines, with Avanti Feeds plummeting 4% and Apex Frozen Foods dropping nearly 3%. Port operators, including Adani Ports, also reported losses, slipping 1.78% in the current session.
Corporate Earnings and Market Outlook
The corporate earnings season has produced mixed results, impacting market sentiment. Kalpataru Projects International reported a remarkable performance, with profits surging 154.4% to Rs. 213.6 crore, alongside a revenue increase of 34.5% to Rs. 6,171.2 crore. In contrast, Crompton Greaves Consumer Electricals faced a profit decline of 19.4% to Rs. 122.3 crore, accompanied by a 6.5% drop in revenue.
Additionally, Sun TV Network reported weaker figures, with profits falling 5.4% to Rs. 529.1 crore and revenues dipping 1.8% to Rs. 1,290.3 crore. These results have contributed to increasing investor uncertainty regarding future market performance.
Looking ahead, the Nifty 50 faces the risk of posting its sixth consecutive weekly loss unless it closes above 24,565. This would mark a streak not seen since early 2020. The Indian rupee traded flat at 87.68 per dollar, showing slight resilience against the backdrop of market volatility.
Institutional flows are becoming increasingly important in maintaining market stability. On August 7, foreign institutional investors (FIIs) recorded net outflows of Rs. 4,997.19 crore, following a previous outflow of Rs. 4,999.10 crore. Meanwhile, domestic institutional investors (DIIs) provided some support with substantial net inflows of Rs. 10,864.04 crore.
As the market continues to grapple with trade war uncertainties and uneven earnings growth, investors are advised to remain cautious. Focusing on fundamentally strong, domestically oriented companies may provide a safer investment strategy until clearer signals emerge regarding trade negotiations and overall economic stability.
In summary, the ongoing trade tensions and mixed corporate earnings results have created a challenging environment for Indian equities. The ability of the Nifty 50 to recover and break its current losing streak will hinge on upcoming developments in US-India trade relations and the performance of key sectors.
