The Indian equity markets concluded the trading day on Friday, August 1, 2025, in negative territory, extending a notable losing streak for key indices. The session was largely shaped by the official implementation of the 25% US tariffs on Indian imports, which continued to weigh heavily on investor sentiment. However, significant domestic institutional buying provided crucial support, mitigating deeper losses and highlighting the increasing resilience of India's capital markets amidst external headwinds. This wrap-up provides a comprehensive overview of the market's performance, key news, institutional activity, IPO updates, and the economic factors influencing investor sentiment.
Table of Contents
- Nifty and Sensex Today – Key Market Indices Performance
- Sector-wise Performance
- Top Stock Market News of the Day – What Moved the Markets
- FII and DII Activity Today – Where Big Money Moved
- IPOs, Listings and Market Buzz – Latest Stock Market Trends
- Top Gainers and Losers – Best and Worst Performing Stocks
- Economic and Global Factors – What Else Affected Markets Today
- What to Watch in the Coming Day/Days – Key Events
- Final Takeaway – Summary of Stock Market Day
The Indian equity benchmarks, the Sensex and Nifty 50, faced a challenging trading session on Friday, August 1, 2025, marking a continuation of their recent downward trend. The market continued to react to the new US tariffs on Indian exports, impacting overall sentiment.
The BSE Sensex closed at 80,599.91, shedding 585.67 points, representing a fall of 0.72%. During the volatile session, the Sensex had traded in the range of 80,495.57 to 81,050.20.
Similarly, the NSE Nifty 50 settled at 24,565.35, slipping 203 points, a decrease of 0.82%. The Nifty 50 swung between an intraday high of 24,784.15 and a low of 24,535.05.
Both indices recorded their longest weekly losing streak in the past two years, with the Nifty down 1.13% and Sensex nearly 1% down for the week.
The Indian stock market today, August 1, 2025, displayed a predominantly negative sectoral performance, with most indices closing in the red, reflecting widespread caution. However, one key defensive sector managed to buck the trend.
Outperforming Sectors:
- Nifty FMCG: This sector emerged as the sole major gainer, closing with a significant +0.69% increase at 56,197.05. The resilience in this sector suggests stable consumer demand for essential goods, making it a defensive play during volatile times.
Underperforming/Lagging Sectors:
- Nifty Pharma: This sector saw the most significant decline, dropping by -3.33% to 22,011.70. This sharp fall was primarily driven by disappointing Q1 results from major players like Sun Pharmaceutical.
- Nifty Metal: This sector also saw a notable decline, dropping by -1.97% to 9,102.35.
- Nifty IT: This sector closed lower by -1.85% at 34,649.60, continuing its recent weakness.
- Nifty Realty: This sector demonstrated a significant decline of -1.78%, dropping to 896.15.
- Nifty PSE: This sector declined by -1.50% to 9,537.75.
- Nifty Commodities: This index closed lower by -1.44% at 8,619.30.
- Nifty PSU Bank: This sector saw a considerable decline of -1.13% to 6,773.35.
- Nifty Auto: The Nifty Auto index closed lower by -1.04% at 23,410.95.
- Nifty CPSE: This sector also saw a decline of -1.04% to 6,316.30.
- Nifty Energy: This sector eased by -0.65% to 34,889.00.
- Nifty Bank: This sector closed down -0.62% at 55,617.60.
- Nifty Media: This sector saw a decline of -0.59% to 1,616.80.
- Nifty MNC: This sector experienced a marginal decline of -0.22% to 28,684.25.
Broader Market Performance: The broader market saw continued pressure:
- The Nifty Midcap 100 index closed at 56,860.20, down 0.94% from its previous close.
- The Nifty Smallcap 100 index closed at 17,763.05, down 1.13% from its previous close. The deeper losses observed in the mid-cap and small-cap indices, compared to the frontline indices, underscore a broader and more pervasive risk aversion among investors.
Today, the Indian stock market was primarily impacted by the official implementation of US President Donald Trump's announcement of a 25% tariff on Indian exports, effective August 1st. This included potential additional unspecified penalties for India's continued energy and arms purchases from Russia. The US Commerce Secretary confirmed these reciprocal tariffs would take effect without further delays, intensifying trade tensions and significantly impacting sectors like electronics, pharmaceuticals, and refined petroleum. The Global Trade Research Initiative (GTRI) estimated that this blanket tariff could decrease India's goods exports to the US by 30%, from $86.5 billion in FY 2025 to $60.6 billion in FY 2026. While the electronics sector received a temporary two-week reprieve, analysts warned of potential disruptions to Apple's plans for India as an export hub.
Foreign Institutional Investors (FIIs) remained significant net sellers in the Indian equity markets on August 1, 2025, offloading shares worth ₹5,538.19 crore (provisional data). This continues a substantial selling trend, with FIIs having net sold shares worth ₹5,588.91 crore on July 31st. The FII exodus has been significant, contributing to the Nifty's four-month bull run ending dramatically. In the derivatives market, FIIs showed significant net short positions, particularly in index options, indicating a bearish outlook.
In stark contrast, Domestic Institutional Investors (DIIs) remained strong net buyers, recording a net inflow of ₹6,171 crore (provisional). On July 31st, DIIs were net buyers at ₹6,372.71 crore. This consistent DII support has been crucial in cushioning the market from steeper declines. This sustained DII buying amidst significant FII outflows signifies a fundamental shift in the Indian equity market's ownership dynamics, with domestic capital increasingly anchoring market stability. For the first time in over twenty years, DIIs have overtaken FIIs in ownership across listed Indian equities, with the FII:DII ratio below parity at 0.98. This structural change makes the Indian market less vulnerable to global capital shifts and reflects growing domestic confidence in India's long-term growth story.
The Initial Public Offering (IPO) market remained vibrant, with one notable issue closing and another making a strong debut.
NSDL IPO – Strong Subscription on Final Day
- The ₹4,011.60 crore Initial Public Offering (IPO) of National Securities Depository Limited (NSDL) concluded its subscription period on August 1, 2025, with robust demand across investor categories. As of 3:04 PM on the final day, the NSDL IPO was subscribed an impressive 20.89 times overall. Qualified Institutional Buyers (QIB) subscribed 36.12 times, Non-Institutional Investors (NII) at 32.79 times, and retail investors at 7.13 times. The IPO was entirely an Offer for Sale (OFS). Allotment is tentatively scheduled for Monday, August 4, 2025, with listing expected on BSE on Wednesday, August 6, 2025.
Patel Chem Specialities IPO – Solid Debut on BSE SME
- The SME IPO of Patel Chem Specialities made a strong debut on the BSE SME platform on August 1, 2025. The shares listed at ₹110, a premium of 30.95% compared to its issue price of ₹84. The IPO had seen overwhelming demand, subscribed 167.32 times overall.
SEBI's Proposed IPO Reforms: The Securities and Exchange Board of India (SEBI) released a comprehensive consultation paper proposing significant amendments to its IPO framework. Key proposals include increasing anchor investor limits, broadening the mutual fund and long-term institutional quota in the anchor portion (totaling 40%), and a graded reduction in the retail quota for large IPOs exceeding ₹5,000 crore, concurrently increasing the QIB share. These reforms aim to streamline the IPO process and broaden investor participation.
Upcoming IPOs: The Indian IPO market is set to remain active in August 2025, with one mainboard IPO,Highway Infrastructure Ltd IPO (August 5-7, ₹130 crore), and several SME IPOs lined up.
Top Gainers (Nifty 50 & Broader Market)
Despite the broader market downturn and the implementation of US tariffs, a few stocks managed to defy the trend and emerge as top performers on August 1, 2025.
Trent (Retail)
- Current Market Price: ₹5,180.00 (NSE)
- Percentage Change: +3.23%
- Reasons: Trent Ltd. saw a significant bounce today, gaining over 3.2%. While the company had reported a robust 20% YoY increase in standalone revenue for Q1 FY26 (to ₹5,061 crore) on July 4th, the stock initially reacted negatively due to concerns about valuations and lowered near-term growth expectations from management (projecting 20% growth in its fashion segment in Q1 FY26, below its historical 35% CAGR). Today's rebound suggests renewed investor interest, possibly driven by a re-evaluation of its strong underlying revenue growth and continued store expansion plans (targeting 250+ new stores in FY26 across all formats).
Asian Paints (FMCG - Paints)
- Current Market Price: ₹2,431.00 (NSE)
- Percentage Change: +1.46%
- Reasons: Asian Paints gained over 1.4% today, recovering some ground after its Q1 FY26 results were released earlier in the week. The company reported a 6% YoY decline in net profit (to ₹1099.77 crore) and a marginal 0.34% YoY drop in revenue, indicating continued demand weakness in urban markets and downtrading. However, the stock likely benefited from a strong sequential (QoQ) rebound in profitability and volume recovery in its core decorative paints business. Brokerages had offered mixed views, with some maintaining a "Hold" rating on expectations of improved profitability and volume recovery despite near-term pressures.
Hindustan Unilever (FMCG)
- Current Market Price: ₹2,553.70 (NSE)
- Percentage Change: +1.29%
- Reasons: Hindustan Unilever (HUL) continued its positive momentum, rising nearly 1.3% today. This comes after the company reported strong Q1 FY26 results yesterday, with a 7.6% YoY rise in standalone net profit to ₹2,732 crore and revenue up 3.8% YoY to ₹15,747 crore. The performance was driven by broad-based growth with underlying sales growth of 5% and underlying volume growth of 4%, despite a slight contraction in EBITDA margins due to increased investments. HUL's resilience in a volatile market and its strong brand portfolio continue to attract investor confidence.
Nestle (FMCG)
- Current Market Price: ₹2,276.50 (NSE)
- Percentage Change: +1.28%
- Reasons: Nestle India gained nearly 1.3% today, despite the broader market's negative sentiment. This comes amidst the news of CEO Suresh Narayanan's retirement on July 31st and the appointment of Manish Tiwary as his successor, effective today. While the company's Q1 FY26 net profit had fallen 13% YoY (to ₹647 crore) due to rising input costs and operational expenses, revenue still rose 6% YoY to ₹5,096 crore, driven by strong performance in powdered and liquid beverages. The stock's positive movement today could be a reflection of optimism surrounding the new leadership and the company's strong underlying growth in key categories.
Hero Motocorp (Auto)
- Current Market Price: ₹4,311.60 (NSE)
- Percentage Change: +1.19%
- Reasons: Hero Motocorp saw a gain of over 1.1% today. This positive movement comes a day after its competitor, Eicher Motors, reported strong Q1 FY26 consolidated net profit growth of 9% YoY and 15% YoY revenue growth, driven by robust motorcycle sales. While Hero Motocorp's own Q1 FY26 results are due on August 6th, the positive sentiment in the two-wheeler sector, especially after Royal Enfield's strong performance, likely provided a tailwind for Hero Motocorp. The stock also benefited from general investor rotation into defensive or domestically-focused sectors amidst the tariff concerns.
Top Losers (Nifty 50 & Broader Market)
On August 1, 2025, several stocks experienced significant declines, primarily driven by the ongoing concerns over US tariffs, disappointing quarterly earnings, and broader negative sentiment in export-oriented sectors.
Sun Pharmaceutical Industries (Pharmaceuticals)
- Current Market Price: ₹1,629.70 (NSE)
- Percentage Change: -4.51%
- Reasons: Sun Pharma was the biggest drag, plummeting over 4.5% after the company reported a 20% year-on-year decline in consolidated net profit to ₹2,279 crore for the first quarter ended June 30, 2025. This significant dip was largely attributable to exceptional charges amounting to ₹818 crore, which included a U.S. litigation settlement and asset impairment. While adjusted net profit (excluding these one-off items) actually increased, investor sentiment turned cautious due to these significant one-time legal provisions and concerns about subdued growth in the crucial U.S. market, further exacerbated by general market worries over US tariffs on Indian pharma exports.
Dr. Reddy's Laboratories (Pharmaceuticals)
- Current Market Price: ₹1,220.60 (NSE)
- Percentage Change: -3.91%
- Reasons: Dr. Reddy's Laboratories shares fell nearly 4% today. This decline was largely a reaction to the broader concerns in the pharmaceutical sector stemming from US President Donald Trump's announcement of a 25% tariff on Indian goods and renewed pressure on global drug prices. The White House had sent letters to 17 global drugmakers urging them to cut U.S. prescription prices to match international benchmarks, raising fears of increased regulatory scrutiny and margin compression for Indian pharma companies heavily reliant on the US market for exports.
Cipla (Pharmaceuticals)
- Current Market Price: ₹1,502.80 (NSE)
- Percentage Change: -3.33%
- Reasons: Cipla also experienced a significant drop of over 3.3% today. Similar to Dr. Reddy's and Sun Pharma, the stock was primarily impacted by the widespread negative sentiment across the pharmaceutical sector due to concerns over US trade policies and potential price regulations on drugs. The broader Nifty Pharma index itself was one of the worst-performing sectoral indices, reflecting the collective anxiety among investors regarding the export-heavy pharma segment's vulnerability to the new US tariffs and demands for lower drug prices.
Adani Enterprises (Conglomerate)
- Current Market Price: ₹2,350.90 (NSE)
- Percentage Change: -3.28%
- Reasons: Adani Enterprises continued its downward trend, shedding over 3.2% today. This comes after the company reported a sharp 45% year-on-year decline in consolidated net profit to ₹976.48 crore for the first quarter ended June 2025. The decline was primarily attributed to lower trade volumes and heightened index price volatility in its Integrated Resource Management (IRM) and Commercial Mining segments. Despite strong performance from incubating businesses like airports, the overall dip in profitability, coupled with general market uncertainty and trade tensions, weighed heavily on investor sentiment.
Tata Steel (Metal)
- Current Market Price: ₹153.01 (NSE)
- Percentage Change: -3.12%
- Reasons: Despite having reported a strong 116% YoY jump in consolidated net profit for Q1 FY26 (to ₹2,078 crore) earlier in the week, Tata Steel's shares ended in the red by over 3.1% today. This decline can be largely attributed to the broader negative sentiment in the metal sector (Nifty Metal was down -1.97%), which is highly sensitive to global trade tensions and commodity prices. The implementation of US tariffs on Indian goods, especially metals, likely sparked concerns about future export volumes and profitability, overriding the positive domestic earnings report.
Beyond the direct impact of corporate earnings and institutional flows, several broader economic and global factors influenced the Indian market today.
- US Tariffs on India: The 25% tariff on Indian imports, effective today, was the most significant factor, expected to severely impact Indian exports, potentially reducing goods exports by 30%.
- Global Market Performance: Major global indices closed lower, reflecting widespread caution. US markets, Asian shares (longest losing streak this year), and European markets all declined, signalling a pervasive risk-off sentiment.
- Crude Oil Prices: Oil prices remained relatively stable despite broader market turmoil, with Brent crude at $71.74 a barrel and US WTI at $69.27. This suggests a balance between demand-side worries due to tariffs and supply-side fears related to potential disruptions of Russian oil trade.
- Indian Rupee Weakness: The Indian Rupee continued its depreciation against the US dollar, closing at 87.60. This persistent slide is a concern for foreign investors, partly attributed to the tariff uncertainty and sustained FII outflows.
- Domestic Economic Data: India's manufacturing sector growth strengthened in July to a 16-month high of 59.1 (HSBC Manufacturing PMI Final). The year-on-year CPI inflation rate for June 2025 moderated significantly to 2.55% (from 3.67% in June 2024), with food inflation at its lowest since January 2019. These positive domestic indicators provide a partial counter-narrative to global headwinds.
- Regulatory Updates: New UPI rules became effective today, implementing caps on balance inquiries and access limits for bank accounts linked to UPI. The Reserve Bank of India (RBI) also expanded trading hours for market repo and Tri-Party Repo operations until 4:00 PM, aiming to enhance money market efficiency.
Investors will remain vigilant as several key events and economic data releases are anticipated in the coming days and week.
- Upcoming Economic Data and Policy Announcements: The most anticipated domestic event is the Reserve Bank of India's Monetary Policy Committee (MPC) decision, expected on Wednesday, August 6, 2025. Investors will closely watch for signals on future monetary policy given the declining inflation. HSBC Composite and Services PMI Final for July are also due on August 5th. Further updates on US-India trade talks will remain crucial.
- Earnings Season Trends: The Q1 FY26 earnings season is in full swing, and company results will continue to be a major driver of stock-specific movements. Investors should watch for companies demonstrating strong revenue and profit growth.
- Geopolitical Developments: The ongoing developments regarding US tariffs on India and broader US trade policy will continue to be closely monitored. Any further statements or clarity on the temporary nature of tariffs or progress in bilateral trade talks could significantly influence sentiment.
The Indian stock market on August 1, 2025, faced significant pressure, closing in negative territory, with the Sensex down 0.72% at 80,599.91 and the Nifty 50 down 0.82% at 24,565.35. The dominant factor was the implementation of new US tariffs on Indian imports, which continued to weigh heavily on export-oriented sectors.
However, the market showed resilience thanks to robust buying by Domestic Institutional Investors (DIIs), who were net buyers of ₹6,171 crore, significantly offsetting the continued selling by Foreign Institutional Investors (FIIs), who were net sellers of ₹5,538.19 crore. This marked a historic shift in market ownership dynamics, with DIIs now holding more ownership than FIIs in listed Indian equities.
The IPO market remained robust, with NSDL's IPO seeing strong subscription on its final day and Patel Chem Specialities making a solid debut on the SME platform. Individual stock performance was primarily driven by Q1 FY26 earnings, with strong results boosting some stocks like Hindustan Unilever, while others like Sun Pharmaceutical declined due to weaker performance or tariff concerns.
Looking ahead, the Reserve Bank of India's upcoming Monetary Policy Committee meeting and the ongoing earnings season will be key domestic drivers. Global trade tensions and rupee volatility will also remain crucial factors for investors to monitor.