Indices snap 2-day gains; Nifty ends below 24,800 mark

Indian equity benchmarks snapped a two-day gaining streak and ended with losses on Thursday after US President Donald Trump announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1 and an unspecified penalty for buying Russian crude oil and military equipment. 

Some of the important factors in today’s trade:

FII outflows continue: Foreign Institutional Investors (FIIs) continued their trend as net sellers, offloading Rs 850.04 crore worth of Indian equities on Wednesday, which further contributed to the downward pressure on the markets.

Business confidence among MSME improves in Q1 FY26: Latest MSME Outlook Survey released by SIDBI has said that business confidence among micro, small, and medium enterprises (MSME) improved during Q1 FY26, backed by steady domestic demand and a supportive financial environment.

Rupee recovers against dollar: Indian rupee recovered from its all-time low and ended higher against the US dollar, amid lower crude prices and suspected RBI interventions, after US President Donald Trump's announcement of 25 per cent tariffs on Indian imports and a penalty for buying Russian Crude.

India, UAE commit to deepening defence partnership: India and the United Arab Emirates (UAE) have reaffirmed their commitment to strengthening bilateral defence cooperation during the 13th India-UAE Joint Defence Cooperation Committee (JDCC) meeting on July 30, 2025. 

Global front: European markets were trading mostly in green as investors digested a slew of earnings and reacted to a flurry of trade and tariff-related announcements from U.S. President Donald Trump on the eve of his Friday deadline.  Asian markets ended mostly lower with the Federal Reserve's interest-rate decision, tech earnings, U.S. President Donald Trump's tariff threats and China data in focus. 

Finally, the BSE Sensex fell 296.28 points or 0.36% to 81,185.58 and the CNX Nifty was down by 86.70 points or 0.35% to 24,768.35.  

The BSE Sensex touched high and low of 81,803.27 and 80,695.15 respectively. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.70%, while Small cap index was down by 0.85%.

The lone gaining sectoral index on the BSE was FMCG up by 1.15%, while Telecom down by 1.80%, Oil & Gas down by 1.47%, Energy down by 1.40%, Metal down by 1.18% and Healthcare down by 1.07% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 3.48%, Eternal up by 1.40%, ITC up by 1.01%, Kotak Mahindra Bank up by 0.96% and Power Grid Corporation up by 0.64%. On the flip side, Tata Steel down by 2.20%, Sun Pharma down by 1.69%, Adani Ports &SEZ down by 1.50%, Reliance Industries down by 1.39% and NTPC down by 1.37% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) has said that US President Donald Trump's announcement to impose a 25 per cent tariff and penalty on Indian goods may seem severe but the country is not in a worse position than nations that signed trade deals with Washington. It said the UK, the EU, Japan, Indonesia, and Vietnam now face elevated tariffs, and in return, have given sweeping concessions --zero tariffs on US farm goods, massive investment pledges, and purchases of American oil, gas, and arms. India has made no such concessions.

GTRI Founder Ajay Srivastava has said that while Trump's announcement of a 25 per cent tariff plus penalty on Indian goods appears harsh, a closer look shows that India is not significantly worse off than countries that did sign deals with the US. He added that India did not walk away from the deal and it negotiated in good faith but refused to cross its red lines particularly on agriculture, where over 700 million livelihoods are at stake.

He said Trump's justification for India's tariffs, trade barriers, and ties with Russia does not stand up to scrutiny, he said, adding that India's tariffs are WTO-compliant, non-tariff barriers are common globally, and discounted Russian oil has helped India manage inflation during global volatility. India is not alone; over 90 countries face similar US pressure. A deal may still emerge, but only on fair terms. For now, India's principled stand has avoided the trap of a one-sided deal -- and that's a success.  

The CNX Nifty traded in a range of 24,956.50 and 24,635.00. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 3.55%, JIO Financial Services up by 2.72%, JSW Steel up by 1.93%, Eternal up by 1.78% and Kotak Mahindra Bank up by 1.04%. On the flip side, Adani Enterprises down by 4.06%, Tata Steel down by 2.52%, Sun Pharma down by 1.95%, Dr. Reddy's Lab down by 1.93% and NTPC down by 1.51% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 47.81 points or 0.52 to 9,184.75 and Germany’s DAX gained 24.08 points or 0.1 to 24,286.30, while France’s CAC fell 8.36 points or 0.11 to 7,853.60.

Asian markets ended mostly lower on Thursday, weighed down after the US Federal Reserve left interest rates unchanged in a divided vote and Chair Jerome Powell signaled caution on the likelihood of a rate cut in September. Meanwhile, investors were evaluating the United States’ 15% tariffs on imports from South Korea and 25% duties on imports from India, along with an unspecified penalty. Chinese and Hong Kong shares declined after data showed China's factory activity unexpectedly deteriorated in July to a three-month low, while Chinese leaders signaled they would refrain from rolling out more major stimulus for now. However, Japanese shares rallied after the Bank of Japan (BoJ) held its key interest rate steady at 0.5% in a unanimous vote and raised its inflation forecast.