Nifty Rebounds 225 Points from 100-DEMA; NSDL Hits 20% Upper Circuit

Market Update at 4:15 PM: On Thursday, August 7, Indian equity benchmarks closed in the green after a volatile session, recovering sharply from intraday losses. The Nifty 50 gained 21.95 points or 0.09 per cent to settle at 24,596.15, while the Sensex ended 79.27 points or 0.1 per cent higher at 80,623.26. 

The markets staged a V-shaped recovery of nearly 225 points, supported by heavyweight HDFC Bank, and rebounded from the crucial 100-day exponential moving average (100-DEMA). The rebound was partly driven by the announcement of a proposed presidential meeting between the United States and Russia, which helped offset investor sentiment dampened earlier by news of the US doubling tariffs on Indian goods over oil trade with Russia.

Out of the 11 major sectoral indices on the NSE, 9 closed in the positive. The Nifty Media index was the top performer, gaining 0.99 per cent, led by Large-Cap stocks PVR Inox and Zee Entertainment. On the contrary, the Nifty Energy index slipped marginally by 0.02 per cent. Broader indices saw mixed action. The Nifty Midcap 100 rose 0.33 per cent, and the Smallcap 100 index ended 0.17 per cent higher. However, NSE’s overall market breadth remained slightly weak, with 1,524 stocks declining against 1,424 advances, and 84 remaining unchanged out of a total of 3,062 traded stocks.

NSDL, recently listed through an IPO, was locked in the 20 per cent upper circuit, attracting attention among retail and institutional investors. Hero MotoCorp rose 4.15 per cent after posting a better-than-expected Q1 result, despite weak sales. On the other hand, BHEL shares slipped 4.95 per cent after the company reported a widened net loss of Rs 455 crore for the June quarter.

HDFC Bank contributed the most to the index gains, adding 12.42 points to Nifty. Hero MotoCorp and Larsen & Toubro also supported the index, adding 6.77 and 4.47 points, respectively. On the downside, ICICI Bank (-6.44 points), Bharti Airtel (-4.81 points), and Hindustan Unilever (-4.53 points) acted as the main draggers.

On the technical side, the recovery from the 100-DEMA is seen as a strong support signal. In terms of price movement, 36 stocks touched their 52-week highs while 101 hit new 52-week lows. Circuit filters were triggered in 51 stocks on the upper side and 87 on the lower side.

Market Update at 12:30 PM: Indian equity benchmarks were trading in the red on Thursday following an unexpected move by the United States to impose an additional 25 per cent tariff on Indian exports. The action, announced by US President Donald Trump, cited India’s ongoing purchases of Russian crude oil as the reason for the new tariff burden.

This latest tariff hike brings the total duty on Indian exports to the US up to 50 per cent, placing India at a competitive disadvantage compared to countries like China on nearly all categories of merchandise exports. The move is expected to affect sectors ranging from textiles and auto components to pharmaceuticals and Small-Cap manufacturing units that rely heavily on export orders to the US.

In a strong reaction, India labelled the decision as "unfair, unjustified, and unreasonable." The Indian government also hinted at reviewing its own trade policies and exploring alternative export markets to counterbalance the expected impact on its large-cap and Mid-Cap export-driven firms.

At 11:45 AM, the BSE Sensex was quoting at 80,051 levels, down by 492 points or 0.61 per cent. The NSE Nifty50 was down by 156.2 points or 0.64 per cent, trading at 24,418 levels. The market sentiment remained cautious, with traders and institutional investors factoring in the implications of the tariff increase.

This development comes at a time when several companies were preparing for their Quarterly Results and upcoming IPO listings. The added uncertainty could impact near-term investor sentiment across both primary and secondary markets, especially among those eyeing dividend-paying stocks or multibagger small-cap opportunities in export-heavy sectors.

Market Update at 10:30 AM: Indian equities opened lower on Thursday following the announcement of an additional 25 per cent tariff by the United States on Indian exports, raising concerns over potential economic fallout and strained bilateral relations. The move has led to a cautious sentiment among investors amid growing trade uncertainty.

The Nifty 50 index fell by 0.26 per cent to 24,511 points, while the BSE Sensex declined 0.24 per cent to 80,344.99 as of 9:23 a.m. IST. The market reaction reflects investor concerns about the impact of worsening ties with the U.S., one of India’s major trading partners.

Among broader indices, both small-cap and mid-cap segments also declined by 0.3 per cent each, as measured by the Smallcap and Midcap indices, respectively. Fourteen of the sixteen major sectoral indices traded in the red, indicating broad-based selling pressure across the board.

Despite the tariff hike, the Reserve Bank of India (RBI) on Wednesday retained its GDP growth forecast for the financial year at 6.5 per cent, signalling that it does not expect a major disruption to the broader economic outlook at this stage. The central bank appears to be downplaying the short-term impact of the U.S. tariff move.

The sell-off comes at a time when Indian markets have been witnessing high retail participation in IPOs and investor interest in dividend-paying and potential multibagger stocks, especially in the small-cap and mid-cap segments. The recent move could prompt investors to shift focus toward fundamentally strong large-cap names or stocks with strong quarterly results and consistent dividend history.

Pre-Market Update at 7:45 AM: Benchmark indices Nifty and Sensex are likely to open in the red on Thursday, August 7, following the imposition of a steep 50 per cent total tariff on Indian imports by former U.S. President Donald Trump. The additional 25 per cent tariff was announced in response to India’s continued purchases of Russian crude oil. The revised tariff policy will be effective from August 27, 2025, following a 21-day grace period. The move is expected to negatively impact India’s export competitiveness and reduce room for diplomatic negotiations.

As of 7:25 AM, the GIFT Nifty was trading at 24,598, down by 32 points from its previous close, indicating a weak start for domestic markets. Meanwhile, Asian markets were trading mixed, while Wall Street closed higher on Wednesday, with the Nasdaq leading gains, up by 1.21 per cent. The Dow Jones gained 0.18 per cent and the S&P 500 rose 0.73 per cent.

On the domestic front, Indian equities ended lower on Wednesday, August 6, after the Reserve Bank of India’s Monetary Policy Committee (MPC) kept the repo rate unchanged and retained a ‘Neutral’ stance. The Sensex declined by 166.26 points to close at 80,543.99, while the Nifty slipped 75.35 points to end at 24,574.20. Sentiment was further impacted by renewed concerns over U.S. trade policy.

Institutional flows reflected a continued divergence in sentiment. Foreign Institutional Investors (FIIs) remained net sellers for the 12th straight session, offloading equities worth Rs 4,999.10 crore. In contrast, Domestic Institutional Investors (DIIs) were net buyers, purchasing shares worth Rs 6,794.28 crore, continuing their 22-day buying streak.

Investors will focus on Q1 FY26 earnings results from key companies today, including Life Insurance Corporation of India, Titan Company, Solar Industries India, Godrej Consumer Products, Cummins India, BSE Limited, Hindustan Petroleum Corporation, General Insurance Corporation of India, Kalyan Jewellers India, Linde India, Page Industries, Max Financial Services, and Biocon. Stock-specific movements are expected based on quarterly results, particularly in large-cap and mid-cap counters.

In commodities, gold remained stable in early Asian trading at USD 3,368.47/oz, up 0.1 per cent, as markets weigh Trump’s tariff decision and possible U.S.-Russia dialogue. Trump stated there was a "good chance" of meeting President Putin soon, potentially easing geopolitical concerns.

Crude oil prices recovered slightly after a five-day losing streak. Brent crude futures rose above USD 67 per barrel and WTI crude approached USD 65 per barrel. The rebound was driven by concerns over global supply disruptions stemming from geopolitical tensions.

For today, PNB Housing remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.