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Markets continue to trade lower in late trade
Aug-01-2025

Indian equity markets continued to trade lower in late trade amid concerns of US tariffs impacting the GDP growth rate of the country. The US President Donald Trump has announced imposition of 25% tariffs on goods coming from India to US, effective from August 7. Further, continuous fund outflows by foreign institutional investors (FIIs) weigh on investors’ sentiments. FIIs were the net seller on Thursday’s trade, offloading equities worth Rs 5,588.91 crore. On sectoral front, textile stocks like Kitex Garment, Pearl Global, KPR Mill, Welspun Living and Gokaldas Export came under pressure after the US slashed tariffs on Bangladeshi imports from 35% to 20%, thereby improving the country's competitiveness in the American market.

On the global front, Asian equity markets were trading mostly in red as higher US tariffs kicked in and a private survey indicated China's manufacturing activity returned to contractionary territory in July as a result of softening new business growth. All European equity markets were trading lower after US President Donald Trump signed a new executive order that imposes fresh import tariffs on a vast array of goods coming from 69 countries and the European Union.

The BSE Sensex is currently trading at 80834.92, down by 350.66 points or 0.43% after trading in a range of 80764.79 and 81317.51. There were 7 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.89%, while Small cap index was down by 1.03%.

The few gaining sectoral indices on the BSE were FMCG up by 0.68%, Power up by 0.19%, Capital Goods up by 0.06% and Consumer Durables up by 0.04%, while Healthcare down by 2.28%, Telecom down by 1.96%, TECK down by 1.52%, IT down by 1.46% and Metal down by 1.40% were the top losing indices on BSE.

The top gainers on the Sensex were Trent up by 4.38%, Asian Paints up by 1.53%, ITC up by 1.43%, Hindustan Unilever up by 1.16% and Reliance Industries up by 0.81%. On the flip side, Sun Pharmaceutical Industries down by 4.78%, Tata Steel down by 2.72%, Infosys down by 2.27%, Tata Motors down by 2.11% and Maruti Suzuki down by 2.07% were the top losers.

Meanwhile, in a clear sign of rural economic momentum, the July 2025 round of the Rural Economic Conditions and Sentiments Survey (RECSS), released by National Bank for Agriculture and Rural Development (NABARD) has revealed that 76.6 per cent of rural households reported an increase in consumption in last one year, marking a sustained trajectory of consumption-led growth. It indicates that inflation concerns have eased, with over 78.4 per cent of households perceiving current inflation to be at or below 5 per cent, reflecting improved price stability.

According to the survey, the CPI-rural inflation fell from 3.25 per cent in March to 2.92 per cent in April and further to 2.59 per cent in May. Food inflation also dropped to 1.36 per cent in May. Financial health has shown improvement with 20.6 per cent of households reporting higher savings and 52.6 per cent sourcing loans solely from formal institutions. Among various informal sources of credit, the share of friends and relatives was more than the share of moneylenders. The average interest rate paid on informal credit declined about 30 basis points in the July 2025 round of the survey.

With regard to optimism, the survey said, it is strong, with 74.7 per cent expecting income growth over the next year and over 56.2 per cent anticipating better job prospects in the short-term. The findings paint an encouraging picture of rising incomes, expanding financial inclusion, and growing household optimism in rural India. Income and spending levels continue to be strongly supported by several fiscal transfer schemes, in both kind and cash -- both from the Centre and states. These include subsidies on food, electricity, cooking gas, fertilisers, and support for school needs, transport, meals, pensions, and interest subsidies. On average, these transfers made up about 10 per cent of a household's monthly income.  These interventions significantly enhance household resilience and reduce financial pressure, especially for vulnerable populations. The July survey also showed better perceptions of infrastructure, with only 2.6 per cent of households reporting any decline reflecting growing satisfaction with basic services like roads, electricity, water, education, and healthcare.

The CNX Nifty is currently trading at 24642.70, down by 125.65 points or 0.51% after trading in a range of 24611.05 and 24784.15. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Trent up by 4.41%, Asian Paints up by 1.50%, Nestle up by 1.48%, Eicher Motors up by 1.45% and ITC up by 1.40%. On the flip side, Sun Pharmaceutical Industries down by 4.88%, Dr. Reddy's Laboratories down by 4.14%, Cipla down by 3.33%, Tata Steel down by 2.86% and Infosys down by 2.28% were the top losers.

Asian equity markets were trading mostly in red; Nikkei 225 slipped 224.82 points or 0.55 to 40,845.00, Hang Seng declined 337.33 points or 1.38 to 24,436.00, Taiwan Weighted lost 108.14 points or 0.46 to 23,434.38, Straits Times fell 20.1 points or 0.48 to 4,153.67, Shanghai Composite weakened 13.26 points or 0.37 to 3,559.95 and KOSPI dropped 126.03 points or 4.04 to 3,119.41, while Jakarta Composite gained 44.93 points or 0.6 to 7,529.27.

European equity markets were trading lower; UK’s FTSE 100 decreased 59.71 points or 0.66 to 9,073.10, France’s CAC fell 139.67 points or 1.83 to 7,632.30 and Germany’s DAX lost 401.87 points or 1.7 to 23,663.60.
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