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Markets end lower amid foreign fund outflows, tariff jitters
Aug-08-2025

Indian equity benchmarks witnessed sharp selloff on Friday and closed the day lower by around a percent, due to losses in Realty, Telecom and Metal stocks. This weakness is mainly attributed to continued selling by foreign funds and the announcement of higher tariffs by the United States on Indian goods.

Some of the important factors in today’s trade: 

There will be no trade negotiations with India until dispute over tariffs resolved: Following Trump’s administration’s decision to double tariffs on Indian imports, U.S. President Donald Trump has said there will be no trade negotiations with India until a dispute over tariffs is resolved.  

FIIs remain net sellers: Foreign institutional investors (FIIs) offloaded equities worth Rs 4,997.19 crore on a net basis on Thursday, according to exchange data. 

US tariff impact on India’s GDP growth:  Amid ongoing concerns over US’ tariff on India, Moody's Ratings has said the country’s Gross Domestic Product (GDP) growth is likely to slow down by about 30 basis points to 6% in the current fiscal (FY26) if the US implements 50% tariffs from August 27.

India's electronics exports surge over 47% to $12.4 billion in Q1FY26: The India Cellular and Electronics Association (ICEA) in its latest data has said that India's electronics exports surged over 47 per cent year-on-year to $12.4 billion in the first quarter of fiscal year 2025-26 (Q1FY26), driven by a robust performance in the mobile phone segment. 

Global front: European markets were trading mostly in green as encouraging corporate earnings announcements aided sentiment. Asian markets ended mixed as concerns about the impact of tariffs imposed by U.S. President Donald Trump weighed on sentiment.

Finally, the BSE Sensex fell 765.47 points or 0.95% to 79,857.79 and the CNX Nifty was down by 232.85 points or 0.95% to 24,363.30.    

The BSE Sensex touched high and low of 80,550.40 and 79,775.84 respectively. There were 5 stocks advancing against 25 stocks declining on the index.  

The broader indices ended in red; the BSE Mid cap index fell 1.56%, while Small cap index was down by 1.03%.

The top losing sectoral indices on the BSE were Realty down by 2.09%, Telecom down by 1.83%, Metal down by 1.82%, Consumer Durables down by 1.68% and Capital Goods down by 1.62%, while there were no gaining sectoral indices on BSE.

The top gainers on the Sensex were NTPC up by 1.39%, Titan Company up by 1.33%, Bajaj Finserv up by 0.28%, Trent up by 0.24% and ITC up by 0.19%. On the flip side, Bharti Airtel down by 3.41%, Tata Motors down by 2.19%, Kotak Mahindra Bank down by 2.08%, Mahindra & Mahindra down by 2.01% and Axis Bank down by 1.82% were the top losers.

Meanwhile, the think tank GTRI has indicated that 50% tariff imposition on Indian goods by US may cause 50% to 70% declined in exports of nine product categories, including organic chemicals, apparel, jewellery and shrimp. US President Donald Trump has slapped an additional 25% tariff on India, raising the total duties to 50% on Indian exports to US, as a penalty for India’s continued purchase of Russian oil. The 50% duty will come into effect from August 27. These tariffs came on top of the usual US import duties, called Most Favoured Nation (MFN) tariffs. GTRI marked the US’ decision to make India one of the most heavily taxed US trading partners as worst than US imposing 30% tariffs on China and 20% tariffs on Vietnam.

GTRI, in its analysis, has categorised exports of nine product categories as very high impact sectors which may get affected by 50% to 70%. These product categories include organic chemicals, carpets, knitted and woven apparel, made-ups, diamonds, gold and jewellery, machinery and mechanical appliances, furniture and bedding, and shrimp. Further, exports of steel, aluminium, copper, and auto parts have been categorized as high-impact segment goods and their exports may decline by 30% to 50%. Finally, low or no impact areas are pharmaceuticals, smartphones, and petroleum products.

It highlighted that India exported $2 billion worth of shrimps to the US in FY2025, accounting for 9.52% of total US shrimp imports. Meanwhile, it noted that these shrimps now face a 50% tariff, an antidumping duty and a countervailing duty of about 10%, and face risk losing significant ground to lower-taxed competitors like Chile. It also noted that India had exported organic chemicals worth $2.7 billion to the US in FY2025, holding a 5.11% market share, and now these exports face a 54% total tariff which includes 4% MFN plus 50% Trump tariff. Moreover, India is the largest exporter of carpets to the US, with a 35.48 per cent market share and $1.2 billion in export value, now faces 52.10% tariff duty. Additionally, it has raised concerns of these tariffs derailing country’s growth in advanced manufacturing exports.

The CNX Nifty traded in a range of 24,585.50 and 24,337.50. There were 8 stocks advancing against 41 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were NTPC up by 1.59%, Titan Company up by 1.49%, Dr. Reddy's Lab up by 1.18%, HDFC Life Insurance up by 0.54% and Bajaj Finserv up by 0.26%. On the flip side, Indusind Bank down by 3.32%, Bharti Airtel down by 3.28%, Adani Enterprises down by 3.15%, Shriram Finance down by 2.93% and Tata Motors down by 2.43% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 1.49 points or 0.02 to 9,102.26 and France’s CAC rose 16.88 points or 0.22 to 7,726.20, while Germany’s DAX lost 9 points or 0.04 to 24,183.50.

Asian markets ended mixed in cautious trade on Friday as US President Donald Trump's reciprocal tariffs targeting more than 90 nations came into force just after midnight. The US President claimed that billions of dollars would soon start flowing into the US, unless blocked by what he called a ‘radical left court’ determined to see America fail. Chinese shares declined after Trump demanded the immediate resignation of new Intel CEO Lip-Bu Tan, calling him ‘highly conflicted’ due to his ties to Chinese firms. However, Japanese shares gained after the country's chief trade negotiator said the US agreed to end so-called stacking on universal tariffs and cut car levies at the same time.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,635.13

-4.54

-0.12

Hang Seng

24,784.00

-297.63

-1.20

Jakarta Composite

7,533.38

43.20

0.57

KLSE Composite

1,556.98

7.87

0.51

Nikkei 225

41,780.00

720.85

1.73

Straits Times

4,239.83

-18.32

-0.43

KOSPI Composite

3,210.01

-17.67

-0.55

Taiwan Weighted

24,021.26

17.49

0.07
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