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Nifty ends lower amid fresh tariff threat from Trump

05 Aug 2025 Evaluate

Indian equity benchmark -- Nifty -- ended lower on Tuesday ahead of RBI’s monetary policy decision and amid fresh tariff threat from Trump. Index made a flat-to-negative start after the US President Donald Trump threatened to substantially increase the tariffs on goods coming from India to US and accused that the country profited from Russia's war in Ukraine by purchasing large quantities of Russian oil. Soon, index magnified its losses and traded near day’s low. Some cautiousness came with exchange data which showed that Foreign Institutional Investors (FIIs) sold equities worth Rs 2,566.51 crore on Monday. Sentiments also remained weak as think tank GTRI said the additional 25 per cent import duty announced by US President Donald Trump on Indian goods could lead to a 30 per cent decline at $60.60 billion in India's exports to America this fiscal. 

In afternoon session, index continued its choppy trade near day’s low for most part of the session. However, downside remained capped as HSBC India Services PMI Business Activity Index grew to 60.5 in July from 60.4 in June, indicating India’s services sector continued a strong growth momentum in the month of July. In last leg of the trade, index trimmed some its losses but remained in red terrain and closed below 24,650 mark.

Most of the sectorial indices ended in red except Auto, Consumer Durables, Metal stocks. The top gainers from the F&O segment were Solar Industries India, UNO Minda and Siemens. On the other hand, the top losers were BSE, Britannia Industries and IIFL Finance. In the index option segment, maximum OI continues to be seen in the 24900 - 25100 calls and 23900 - 24100 puts indicating this is the trading range expectation.

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