Sensex, Nifty Slip Despite US Tariff Delay to August 7

Market Update at 12:15 PM: Indian stock markets showed signs of recovery in midday trade after reports confirmed that the revised tariffs by US President Donald Trump on various trading-partner countries will now come into effect from August 7 instead of the earlier deadline of August 1. The news brought some relief to investor sentiment, although benchmark indices remained in the red.

At 12:00 PM, the BSE Sensex was trading at 80,902.09, down by 283 points or 0.35 per cent. Similarly, the Nifty50 index was down by 109 points or 0.44 per cent at 24,658.55. The revision in implementation date eased fears of immediate disruption in trade flows, while Trump's stance on keeping India's adjusted tariffs unchanged at 25 per cent offered some clarity.

From the Large-Cap Sensex constituents, Sun Pharma, Tata Steel, Tata Motors, Infosys, and Maruti Suzuki were among the top laggards. On the other hand, Asian Paints, Trent, HUL, ITC, and Kotak Mahindra Bank were among the Top Gainers, reflecting a mixed trend across sectors.

In the broader market, selling pressure continued. The Nifty MidCap index slipped 0.59 per cent, while the Nifty SmallCap index dropped 0.6 per cent. Sector-wise, Nifty Pharma emerged as the biggest loser with a decline of 2.95 per cent, followed by the Nifty IT index which shed 1.33 per cent, likely impacted by the global trade uncertainty. However, defensive buying was seen in FMCG stocks, as the Nifty FMCG index rose 1 per cent, supported by gains in consumption-heavyweights.

Investors are closely watching further developments in global trade policy, upcoming Quarterly Results, and announcements related to dividends or bonus shares. Market sentiment may remain volatile in the short term as participants assess geopolitical developments and sector-specific trends.

Market Update at 10:30 AM: Indian equity benchmarks opened marginally lower on Friday, August 1, following the United States’ announcement of steep tariff hikes on multiple trading partners, including India. The move sparked concerns over global trade relations and added pressure on investor sentiment.

At 9:15 a.m. IST, the Nifty 50 index fell 0.14 per cent to 24,734.9, while the BSE Sensex was down by 0.14 per cent at 81,074.41. The broader market reflected mixed cues, with Small-Cap and Mid-Cap indices – Smallcap and Midcap – trading flat at the open. Out of the 16 major sectoral indices, 12 opened in the red.

The weakness in Indian markets follows a sharp drop on Thursday, when both benchmarks fell as much as 0.9 per cent intraday. However, they managed to pare some losses and closed about 0.4 per cent lower. Market participants interpreted the tariff imposition, particularly the 25 per cent duty on Indian imports, as a negotiating tactic by the US government.

US President Donald Trump confirmed on Wednesday that negotiations between India and the United States are still ongoing. The US raised tariffs on imports from Canada to 35 per cent from 25 per cent and introduced new duties of 20 per cent and 19 per cent on Taiwan and Thailand, respectively. These developments have raised concerns about trade tensions impacting emerging markets and export-reliant sectors.

While investors await further updates on trade talks, key factors such as upcoming quarterly results, corporate announcements, and global cues are likely to guide the near-term direction of the market. With heightened volatility, traders may also closely track developments in small-cap and mid-cap segments, which have recently shown resilience.

Pre-Market Update at 7:45 AM: On Friday, August 1, Gift Nifty hinted at a muted start for Indian markets. As of 7:00 AM, Gift Nifty was trading near 24,716—down 52 points from the previous close—suggesting a cautious tone for benchmark indices Nifty and Sensex.

Asian markets opened lower, tracking weakness in US stocks after a fresh wave of tariffs announced by former US President Donald Trump. On Thursday, Trump issued an executive order imposing reciprocal tariffs—35 per cent on Canadian goods, 50 per cent on Brazilian imports, 25 per cent on Indian items, 20 per cent on Taiwanese goods, and 39 per cent on products from Switzerland. Market sentiment turned wary as the global trade environment appeared to shift once again.

On July 31, Foreign Institutional Investors (FIIs) sold equities worth Rs 5,588.91 crore—marking their ninth straight day of selling. Meanwhile, Domestic Institutional Investors (DIIs) extended their buying streak to 19 sessions, purchasing stocks worth Rs 6,372.71 crore. Timken India's quarterly results announced post-market on Wednesday will likely draw investor attention today. 

Additionally, major Q1 FY26 earnings expected on August 1 include ITC, Adani Power, Tata Power, Godrej Properties, UPL, Tube Investments, GSK Pharma, MCX, Narayana Hrudayalaya, Honeywell Automation, LIC Housing Finance, and Delhivery. These announcements could lead to stock-specific action in both large-cap and mid-cap segments.

Indian indices rebounded from intraday lows after investors interpreted the US tariff announcement as a negotiation tactic rather than a long-term hurdle. The Nifty 50 closed 0.35 per cent lower at 24,768.35, while the Sensex declined 0.36 per cent to settle at 81,185.58.

The US market ended in red—S&P 500 slipped 0.37 per cent, Nasdaq fell 0.03 per cent, and the Dow Jones dropped 0.74 per cent (330.30 points). Inflation in the US rose, with the PCE price index up 0.3 per cent in June, compared to 0.2 per cent in May. Jobless claims slightly increased, with 218,000 new filings last week.

Gold prices were flat at USD 3,288 per ounce as traders watched tariff talks closely. Crude oil saw minimal changes—U.S. crude at USD 69.36 and Brent at USD 71.84 per barrel. The US dollar index remained near the 100 mark, boosted by tariff-related developments and global uncertainty.

There are no stocks banned for trading in the F&O segment today.

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