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Bourses continue to reel under selling pressure in early afternoon session
Aug-07-2025

Indian markets continued to reel under selling pressure in early afternoon session as US President Donald Trump has signed an executive order to impose an additional 25% tariff on India, on the top of already imposed 25%. Traders overlooked the report that Prime Minister Narendra Modi responded to US President Donald Trump raising tariffs on India from 25% to 50% and said that India will not compromise on the interests of farmers, livestock holders, and fishermen. As per reports, the US has been demanding broad access to India's agricultural and dairy market - a sensitive sector that influences the livelihoods of millions of farmers. Sector wise, insurance sector remained in limelight as non-life insurers reported 0.95% rise in gross direct premium underwritten at Rs 28102.14 crore for the month of July 2025. 

On the global front, all Asian markets were trading higher as Japan's leading index increased more than expected in June to the highest level in three months. The leading index, which measures future economic activity, rose to 106.1 in June from 104.8 in May.

The BSE Sensex is currently trading at 80154.24, down by 389.75 points or 0.48% after trading in a range of 79979.05 and 80421.84. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.64%, while Small cap index was down by 0.77%.

The top losing sectoral indices on the BSE were Capital Goods down by 1.28%, Telecom down by 1.16%, Industrials down by 1.09%, Basic Materials down by 1.04% and Metal was down by 0.97%, while there were no gaining sectoral indices on the BSE. 

The top gainers on the Sensex were HDFC Bank up by 0.35%, ITC up by 0.29%, Tech Mahindra up by 0.19%, Power Grid up by 0.07% and HCL Tech up by 0.00%. On the flip side, Adani Ports down by 2.70%, Tata Motors down by 1.80%, Tata Steel down by 1.13%, Sun Pharma down by 1.06% and Bajaj Finserv down by 0.94% were the top losers.

Meanwhile, Federation of Indian Export Organisations (FIEO) has said that the US decision to impose an additional 25 per cent tariff on Indian goods is ‘extremely shocking’ and will impact 55 per cent of India's exports to America. US President Donald Trump has slapped an additional 25 per cent tariff on goods coming from India as a penalty for New Delhi's continued purchase of Russian oil, a move that is likely to hit sectors such as textiles, marine and leather exports hard. After this order, the total tariff on Indian goods, barring a small exemption list, will be 50 per cent.

FIEO DG Ajay Sahai has said that this move is a severe setback for Indian exports, with nearly 55 per cent of its shipments to the US market directly affected. The 50 per cent reciprocal tariff effectively imposes a cost burden, placing its exporters at a 30-35 per cent competitive disadvantage compared to peers from countries with lesser reciprocal tariff. He added that many export orders have already been put on hold as buyers reassess sourcing decisions in light of higher landed costs. For a large number of MSME-led sectors, absorbing this sudden cost escalation is simply not viable. Margins are already thin, and this additional blow could force exporters to lose long-standing clients. With this high tariff, the domestic exporters will have to look for alternative markets. 

After the new levy, India will attract the highest tariff of 50 per cent along with Brazil. After this, India's competitors will be much better placed in the US market as their duty is lower - Myanmar (40 per cent), Thailand and Cambodia (both 36 per cent), Bangladesh (35 per cent), Indonesia (32 per cent), China and Sri Lanka (both 30 per cent), Malaysia (25 per cent), Philippines and Vietnam (both 20 per cent). In 2024-25, the bilateral trade between India and the US stood at $131.8 billion ($86.5 billion exports and $45.3 billion imports). 

The CNX Nifty is currently trading at 24441.35, down by 132.85 points or 0.54% after trading in a range of 24387.55 and 24542.90. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 1.81%, JSW Steel up by 0.29%, HDFC Life Insurance up by 0.27%, ITC up by 0.27% and HDFC Bank up by 0.26%. On the flip side, Adani Ports own by 3.06%, Adani Enterprises down by 2.71%, JIO Financial down by 2.02%, Tata Motors down by 1.62% and Apollo Hospital down by 1.54% were the top losers.

All Asian markets were trading higher; Taiwan Weighted added 556.41 points or 2.32 to 24,003.77, Nikkei 225 surged 228.14 points or 0.56 to 41,023.00, Hang Seng advanced 118.37 points or 0.48 to 25,029.00, Straits Times rose 34.49 points or 0.82 to 4,262.19, Jakarta Composite gained 32.87 points or 0.44 to 7,536.62, KOSPI increased 29.54 points or 0.92 to 3,227.68 and Shanghai Composite was up by 5.68 points or 0.16 to 3,639.67.
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