Mumbai, August 1, 2025 — Indian equity benchmarks opened lower on Friday, weighed down by renewed concerns over US-imposed tariffs and persistent foreign fund outflows. The BSE Sensex dropped 111.17 points to 81,074.41, while the NSE Nifty slipped 33.45 points to 24,734.90 in early trade.
The decline follows an executive order by former US President Donald Trump, announcing a 25% “Reciprocal Tariff, Adjusted” on Indian exports, part of a broader trade recalibration targeting nearly 70 countries. The move, which comes into effect on August 7, has sparked fears of disruption across export-oriented sectors.
Among major laggards, Sun Pharma plunged over 5% after reporting a 20% year-on-year drop in consolidated net profit to ₹2,279 crore for Q1 FY26. Other underperformers included Mahindra & Mahindra, Tata Steel, Tata Motors, Infosys, and Larsen & Toubro. On the upside, Hindustan Unilever, ITC, Asian Paints, and Maruti Suzuki posted gains, offering some cushion to the indices.
Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth ₹5,588.91 crore on Thursday, adding to the bearish sentiment.
Market analysts suggest the tariff announcement may be a short-term headwind. “The August series starts on a weak note, but the market views the 25% tariff as negotiable. Talks are expected to begin this month,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments.
Global cues remained negative, with major Asian indices — including South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng — trading lower. US markets also closed in the red, pressured by hawkish Fed signals and soft Q1 earnings.
Brent crude futures declined 0.97% to $72.53 per barrel, adding to macroeconomic concerns.
The market outlook remains cautious, with investors closely watching diplomatic developments and potential tariff negotiations in the coming days.
