The Indian equity markets experienced a highly volatile trading session on Thursday, July 31, 2025, initially reeling from a significant global development but demonstrating remarkable resilience throughout the day. The session was largely shaped by the announcement of new US tariffs on Indian exports, which triggered a sharp opening decline. However, a strong recovery in the latter half of the day, primarily driven by domestic buying, helped mitigate the losses. 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 and Predictions
- Final Takeaway – Summary of Stock Market Day
The Indian equity benchmarks, the Sensex and Nifty 50, commenced Thursday's trading session, July 31, 2025, with substantial losses, opening sharply lower. This immediate downturn was a direct reaction to US President Donald Trump's announcement of a 25% tariff on Indian exports, effective from August 1st, coupled with an unspecified "penalty" for India's trade ties with Russia.
The BSE Sensex tumbled as much as 786 points intraday, hitting a low of 80,695.15. While it recovered some ground from its day's low, it eventually closed lower by 296.28 points, or 0.36%, at 81,185.58. The index had traded in the range of 80,695.15 to 81,803.27 during the volatile session.
Similarly, the NSE Nifty 50 slipped below the 24,700 mark, reaching an intraday low of 24,635, a decline of 220 points from its previous close. The Nifty 50 also pared some losses but concluded the day lower by 86.70 points, or 0.35%, to settle at 24,768.35. It had swung between 24,635 and 24,956.50 during the session.
The initial sharp decline was driven by concerns over the impact of the new tariffs on Indian exports across various sectors like gems, pharmaceuticals, textiles, and auto components. However, market sentiment later saw a recovery, with some analysts suggesting that the tariffs might be temporary and could be negotiated lower as trade talks between India and the US are ongoing. A strong rally in select stocks, particularly Hindustan Unilever, following its quarterly earnings, also contributed to the recovery from the day's lows.
The Indian stock market today, July 31, 2025, displayed a mixed sectoral performance. While a few sectors managed to eke out gains, several key indices faced headwinds, contributing to a cautious end to the trading day.
Outperforming Sectors:
- NIFTY FMCG: This sector emerged as the top performer, closing with a significant 1.44% increase at 55,812.15. The resilience in this sector suggests stable consumer demand for essential goods, often acting as a defensive play during volatile times.
- NIFTY Media: Interestingly, the NIFTY Media index closed in positive territory, gaining 0.10% to settle at 1,626.35. This indicates some positive sentiment within the media and entertainment space, despite other sectors struggling.
Underperforming/Lagging Sectors:
- NIFTY Pharma: This sector saw the most significant decline, dropping by 1.31% to 22,771.05. This reflects a notable negative sentiment in the pharmaceutical space.
- NIFTY Metal: This sector also saw a notable decline, dropping by 1.22% to 9,285.45.
- NIFTY PSU Bank: This sector saw a considerable decline of 0.82% to 6,850.95, suggesting a cautious sentiment pervading public sector banks.
- NIFTY Realty: This sector demonstrated a decline of 0.58%, dropping to 912.35. The fall suggests continued headwinds for the real estate sector, possibly due to broader economic concerns or interest rate sensitivities.
- NIFTY IT: This sector closed lower by 0.51% at 35,301.65.
- NIFTY Auto: The NIFTY Auto index closed lower by 0.38% at 23,655.85.
- NIFTY Fin Service: This sector also saw a decline of 0.20% to 26,649.95.
Overall, while a couple of sectors managed to eke out gains, several key indices, particularly in the financial, IT, and realty spaces, faced headwinds, contributing to a cautious end to the trading day.
Broader Market Performance:
The broader market saw some pressure:
- The S&P BSE Midcap index closed at 45,781.65, down 0.70% from its previous close.
- The S&P BSE SmallCap index closed at 53,575.66, down 0.57% from its previous close.
Today, the Indian stock market experienced a significant downturn following US President Donald Trump's announcement of a 25% tariff on Indian exports, effective August 1st, along with potential additional penalties over India's Russian military and oil purchases. This escalated trade tensions, particularly impacting sectors like electronics, gems & jewellery, pharmaceuticals, and refined petroleum, given the US is India's largest export destination. Despite an initial sharp decline, the market showed a substantial recovery, indicating investors distinguished between immediate headline shock and the more contained, long-term economic impact, recognizing India's domestically driven economy would limit overall repercussions, estimated at a 30-40 basis point GDP growth reduction.
Foreign Institutional Investors (FIIs) remained significant net sellers in the Indian equity markets throughout July 2025, offloading over ₹42,000 crore, nearly double their net purchases in the preceding four months. On July 30th, FIIs were net sellers of ₹850.04 crore, with their long-short ratio in index futures sharply indicating increased short positions. In contrast, Domestic Institutional Investors (DIIs) provided crucial market support, being net buyers of ₹1,829.11 crore on July 30th and accumulating ₹37,687 crore in July. While persistent FII selling, driven by factors like a strengthening US dollar, US Federal Reserve rate cut expectations, and the impact of the Jane Street ban, has caused volatility, robust DII buying has largely cushioned the market against a sharper correction.
The Initial Public Offering (IPO) market remained vibrant, with two notable issues attracting significant attention.
Aditya Infotech IPO – Strong Retail and NII Demand
The Initial Public Offering (IPO) of Aditya Infotech Ltd, which opened on July 29th and closed on July 31st, saw robust demand, particularly from retail and non-institutional investors (NIIs). On its final day of bidding, the IPO was subscribed an impressive 8.88 times overall for the 1.12 crore shares offered. Retail investors subscribed their portion 23.87 times, while NIIs showed significant interest with a 16.32 times subscription. However, participation from Qualified Institutional Buyers (QIBs) remained relatively limited, with their portion subscribed only about 25%. The issue size was ₹1,300 crore, with a price band set between ₹640 and ₹675 per share.
The Grey Market Premium (GMP) for Aditya Infotech IPO stood at ₹285 on July 31st. This suggests a potential premium listing around ₹960 per share, indicating an estimated listing gain of approximately 42% over the upper price band. Aditya Infotech shares are expected to be listed on both BSE and NSE on August 5th.
NSDL IPO – Fully Subscribed on Day 1
The IPO of National Securities Depository Ltd (NSDL), India's first and largest securities depository, opened on July 30th and is set to close on August 1st. The issue, which is entirely an offer for sale (OFS) of 5.01 crore equity shares, was fully subscribed on its first day. By 10:43 AM on Day 2 (July 31st), the IPO was subscribed 2.27 times overall. Non-Institutional Buyers (NIIs) showed strong interest at 3.91 times, followed by Retail Investors at 2.43 times. The portion reserved for employees was subscribed 4.56 times, while QIBs subscribed 0.84 times. The price band for NSDL IPO is ₹760 to ₹800 per equity share, aiming to raise up to ₹4,012 crore.
The GMP for NSDL IPO rose to ₹135 as of 10:46 AM on July 31st. This implies a potential premium listing around ₹935 per share, suggesting a 16.88% gain over the upper price band. NSDL is expected to list on BSE on August 6th.
The strong oversubscription in the retail and NII categories for both Aditya Infotech and NSDL IPOs, coupled with healthy GMPs, clearly indicates robust confidence among smaller investors in the primary market.
Individual stock performance was largely dictated by corporate earnings and specific company developments.
Top Gainers (Nifty 50 & Broader Market)
Despite the broader market downturn triggered by US tariffs, a few stocks managed to defy the trend and emerge as top performers on July 31, 2025.
Hindustan Unilever (FMCG)
- Current Market Price: ₹2,524.00 (NSE)
- Percentage Change: +3.55%
- Reasons: Hindustan Unilever (HUL) was a standout performer, surging over 3.5% on the back of strong quarterly results for Q1 FY26. The company reported a consolidated net profit of ₹2,756 crore, up 5.59% year-on-year, with revenue surging 5.14% YoY to ₹16,514 crore. This performance was driven by broad-based volume-led growth across categories, with its Home Care division reporting 4% sales growth and high-single digit volume growth. The strong earnings clearly boosted investor confidence.
Jio Financial Services (Financial Services)
- Current Market Price: ₹329.00 (NSE)
- Percentage Change: +2.72%
- Reasons: Jio Financial Services climbed over 2.7% today. This surge was driven by the company's announcement that its board cleared a major capital infusion plan via a preferential allotment of warrants worth ₹15,825 crore to promoter group entities. This move, which will increase the promoter stake upon full conversion, signals strong promoter confidence and is seen by markets as a step toward long-term scalability. Additionally, Jio Financial reported an improved Q1 FY26 performance with a net profit of ₹325 crore (up 4% YoY) and revenue rising 46.6% YoY to ₹612.46 crore, driven by higher income in digital lending and insurance distribution.
JSW Steel (Metal)
- Current Market Price: ₹1,057.90 (NSE)
- Percentage Change: +1.93%
- Reasons: JSW Steel saw a significant gain of almost 2% today. This positive movement comes after the Supreme Court recalled its May 2 verdict which had ordered the liquidation of Bhushan Steel and Power Limited (BSPL). The Supreme Court stated that its impugned judgment did not consider the legal position correctly and fixed the pleas for a fresh hearing. This development likely provided a substantial relief to JSW Steel, as it was the successful resolution applicant for BSPL and the previous verdict had set aside its resolution plan.
Eternal Ltd (Unspecified Sector)
- Current Market Price: ₹308.85 (NSE)
- Percentage Change: +1.78%
- Reasons: Eternal Ltd also saw positive movement, gaining nearly 1.8%. While specific company-related news explaining this surge on July 31, 2025, was not immediately available, the stock experienced fluctuations throughout the day, ultimately ending in positive territory. This could indicate sustained buying interest or positive sentiment in its specific sub-sector.
ITC (FMCG/Diversified)
- Current Market Price: ₹411.70 (NSE)
- Percentage Change: +1.01%
- Reasons: ITC closed with a gain of over 1%. While specific consolidated Q1 FY26 results for ITC Ltd as a whole were not available at the time, its hotel subsidiary, ITC Hotels, had previously reported strong Q1 FY26 earnings (profit jumped 54% YoY). Given ITC's diversified portfolio, the positive performance of its FMCG segment (as reflected in NIFTY FMCG being a top gainer) and possibly spillover positive sentiment from its hotel business likely contributed to its upward movement today.
Top Losers (Nifty 50 & Broader Market)
On July 31, 2025, several stocks experienced significant declines, driven by a combination of broader market concerns (like the US tariff announcement) and company-specific issues.
Adani Enterprises (Conglomerate)
- Current Market Price: ₹2,430.70 (NSE)
- Percentage Change: -4.03%
- Reasons: Adani Enterprises was the top loser, plummeting over 4% after announcing its Q1 FY26 results. The company reported a sharp 50% year-on-year decline in consolidated net profit to ₹734 crore, primarily due to lower trading volumes and weak price realizations in its integrated resource management and commercial mining segments. Additionally, consolidated revenue dipped 14% YoY to ₹22,437 crore. While its incubating businesses like airports showed robust EBITDA growth, the overall decline in profitability weighed heavily on investor sentiment.
Tata Steel (Metal)
- Current Market Price: ₹157.30 (NSE)
- Percentage Change: -2.52%
- Reasons: Despite reporting a stellar 116% year-on-year jump in consolidated net profit to ₹2,078 crore for the June 2025 quarter, Tata Steel's shares ended in the red. While its profit and revenue beat street estimates, the stock's decline could be attributed to the broader negative sentiment in the metal sector (NIFTY METAL down 1.22%) due to the US tariff announcement impacting export-oriented sectors. Concerns over a 3% decline in revenue from operations, coupled with maintenance shutdowns impacting volumes in India and a continued EBITDA loss in the UK, might have also contributed to the cautious reaction.
Dr. Reddy's Laboratories (Pharmaceuticals)
- Current Market Price: ₹1,267.10 (NSE)
- Percentage Change: -1.93%
- Reasons: Dr. Reddy's Laboratories shares declined nearly 2% today. This fall was largely a reaction to US President Donald Trump's announcement of a 25% tariff on Indian goods. The pharmaceutical sector, a significant Indian export to the US, is particularly vulnerable to such trade actions. Analysts noted that if these tariffs extend to drug exports, it could force Indian drugmakers to either pass on costs, remove low-margin products from the US market, or consider manufacturing within the US, all of which could impact profitability.
Sun Pharmaceutical Industries (Pharmaceuticals)
- Current Market Price: ₹1,700.00 (NSE)
- Percentage Change: -1.95%
- Reasons: Sun Pharma also saw a significant drop of almost 2%. Similar to Dr. Reddy's, the stock was impacted by the broader concerns surrounding the US tariffs on Indian exports, especially for the pharma sector. Additionally, Sun Pharma reported a 20% fall in its Q1 consolidated net profit to ₹2,278 crore compared to the year-ago period. This decline in profit, despite a 10% rise in revenue, was primarily due to a one-time exceptional charge of ₹818 crore during the quarter. The combination of trade policy jitters and a notable profit dip led to negative investor reaction.
Adani Ports and Special Economic Zone (Ports & Logistics)
- Current Market Price: ₹1,374.00 (NSE)
- Percentage Change: -1.43%
- Reasons: Adani Ports experienced a decline of over 1.4%. The company, being heavily involved in international trade through its port operations, would naturally be sensitive to news of tariffs and potential disruptions to global supply chains. The general market weakness and concerns over the impact of US tariffs on Indian exports likely contributed to the selling pressure on Adani Ports. While no specific company news for July 31, 2025, was available beyond a board meeting scheduled for August 5 to consider quarterly results, the broader negative market sentiment surrounding trade impacted the stock.
The performance of individual stocks today clearly demonstrates that corporate earnings remain the most significant factor influencing share prices. The case of Apar Industries, which saw a decline despite previously strong Q1 FY26 results, illustrates a more complex market dynamic where even positive news can be met with profit booking, especially in a volatile market environment.
Beyond the direct impact of corporate earnings and institutional flows, several broader economic and global factors influenced the Indian market today.
RBI's Monetary Policy Stance and Liquidity Management
The Reserve Bank of India (RBI) is maintaining a cautious stance on monetary policy. The RBI is unlikely to re-introduce fixed-rate liquidity operations and may shift to a seven-day operation as the main liquidity tool. Hopes for an immediate rate cut are fading, primarily due to the Indian Rupee's recent slump and the new US tariffs.
Inflation Numbers – A Benign Outlook
India's Consumer Price Index (CPI) inflation continued its declining trajectory, moderating to a nearly six-year low of 3.2% (year-on-year) in April 2025. The outlook for inflation remains benign across major constituents.
Crude Oil Price Movements
Global crude oil prices showed mixed movements today. Brent crude futures for September fell 0.1% to $73.14 a barrel, while US West Texas Intermediate (WTI) crude for September dropped 0.1% to $69.95 a barrel.
Indian Rupee Weakness
The Indian Rupee opened 27 paise lower at 87.70 against the US dollar on Thursday, nearing its all-time low of 87.95. This sharp fall was primarily driven by increased month-end dollar demand and continued outflows from foreign funds.
US Federal Reserve and Global Geopolitical Factors
US indices closed mostly lower, influenced by the Federal Reserve's latest policy decisions. The broader global economic outlook, while showing reduced uncertainty, remains high enough for multilateral agencies to revise global growth and trade projections downwards. The US tariffs on India are a significant geopolitical factor, causing investment uncertainty.
India's Fiscal Deficit and GDP Growth
India's real GDP growth was estimated at 6.5% for FY25, with the RBI expecting the same rate to continue into FY26. The fiscal deficit for FY25 narrowed to 4.8% of GDP, supported by disciplined spending and robust tax collections. India's foreign exchange reserves stood at a healthy USD 697.9 billion as of June 2025.
India's robust economic fundamentals provide a solid domestic foundation for the market. However, the weakening Indian Rupee and continued Foreign Institutional Investor outflows, both linked to broader global factors, highlight persistent external vulnerabilities.
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
Investors will closely monitor the US Federal Reserve's balance sheet update on August 1st. The most anticipated domestic event is the Reserve Bank of India's Monetary Policy Committee (MPC) decision, expected around August 6th. Further updates on the US-India trade talks, with a sixth round set for August 25th, will be important for sectors impacted by the new tariffs.
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 and management commentary on outlook.
The Indian stock market on July 31, 2025, exhibited volatility, initially reacting to new US tariffs but showing significant intraday recovery. The Sensex closed at 81,185.58, down 0.36%, and the Nifty50 at 24,768.35, down 0.35%. This resilience was largely attributed to strong buying by Domestic Institutional Investors (DIIs), who were net buyers of ₹1,829.11 crore, significantly offsetting the continued selling by Foreign Institutional Investors (FIIs), who were net sellers of ₹850.04 crore on July 30th. FIIs have been net sellers of over ₹42,000 crore in July.
The IPO market remained robust, with Aditya Infotech's IPO closing on July 31st with a total subscription of 31.44 times, seeing strong interest from retail (40.33x) and Non-Institutional Investors (51.50x). NSDL's IPO, open from July 30th to August 1st, was subscribed 2.15 times by midday on July 31st, indicating continued investor appetite for new listings.
Individual stock performance was primarily driven by Q1 FY26 earnings, with strong results boosting some stocks like Hindustan Unilever (+3.55%) and Greaves Cotton (+13.99%), while others like Adani Enterprises (-4.06%) declined due to weaker performance. Export-heavy sectors like textiles, pharma, and auto components faced pressure from the new US tariffs.
Looking ahead, the Reserve Bank of India's upcoming Monetary Policy Committee meeting (scheduled for August 4-6, 2025) and the ongoing earnings season will be key drivers. Global trade tensions and rupee volatility will also remain crucial factors for investors to monitor.