The Indian stock market commenced trading on Tuesday, July 31, 2025, with a sharp decline. Weak global cues and the impact of a stricter stance from the United States towards India weighed on investor sentiment. The BSE Sensex touched a low of 80,695 points in early trade, down by 786 points, while the NSE Nifty also slipped 212 points to a level of 24,642.
Both major indices were in the red right from the market opening, and this trend continued until the afternoon. However, a slight recovery was observed in the final hour of the day, with the Sensex closing at 81,202 after recovering 279 points. The Nifty also rebounded from its lows to 24,765, although it still closed 90 points down.
US Stringency Shakes the Market
The primary reason cited for Tuesday's market decline is the new tariff decision from the United States. The US administration has announced tariffs of up to 25 percent on certain products imported from India and economic penalties for purchasing crude oil and weapons from Russia.
This announcement has increased uncertainty in the minds of investors. Several sectors, particularly defense, energy, and auto, have been affected. Confusion regarding India's foreign policy has led to widespread selling in the market.
Sectoral Performance: IT and FMCG Under Most Pressure
During Tuesday's trading session, the IT, Pharma, and FMCG sectors experienced the most pressure. Investors in these sectors adopted a cautious approach, resorting to profit-taking. Meanwhile, the metal and auto sectors showed some stability.
- IT Index fell by approximately 1.5 percent
- Pharma Sector also witnessed a decline of about 1 percent
- FMCG shares experienced slight selling
- Metal and Auto sectors saw a mild recovery
Top Gainers and Losers
During the day's trading, some stocks showed good recovery, while others remained under pressure.
Today's Top Gainers:
- Tata Motors: Up by 3.2%
- JSW Steel: Gained 2.7%
- Maruti Suzuki: Up 2.5%
- ONGC: Gained 2.2%
- L&T: Closed up 1.9%
Today's Top Losers:
- Infosys: Down by 2.8%
- HUL: Down 2.5%
- Wipro: Weakened by 2.2%
- Asian Paints: Down 1.9%
- TCS: Fell by 1.8%
Pressure Also Visible on Midcap and Smallcap
The market decline was not limited to blue-chip companies alone; midcap and smallcap stocks were also affected. However, with the recovery in the afternoon, some strength returned to them as well.
- Nifty Midcap 100 down by approximately 0.6%
- Nifty Smallcap 100 slipped by about 0.3%
Investors exercised caution across the entire segment and refrained from making new investments for the time being.
No Support From Foreign Markets Either
International cues were also weak on Tuesday. Trade tensions between the US and China and signs of slow growth in Europe made global investors uneasy as well. Due to this, Foreign Institutional Investors (FIIs) seemed to distance themselves from the Indian market to some extent.
Additionally, the rupee also weakened slightly against the dollar, which affected import-based sectors such as oil & gas and the auto sector.
Slight Decline in Rupee
The Indian rupee weakened by 18 paise against the dollar on Tuesday, closing at 83.36. This decline in the rupee was recorded due to the strengthening of the US dollar and the caution of foreign investors. There are concerns that this could increase the costs of companies like oil and gas.
Market Status at a Glance (July 31, 2025)
- Sensex: 81,202 (-279 points)
- Nifty: 24,765 (-90 points)
- Nifty Bank: 53,925 (-115 points)
- Midcap 100: 52,105 (-312 points)
- Smallcap 100: 15,765 (-118 points)
Investors Now Focus on RBI Policy
The market's attention is now focused on the Reserve Bank of India's (RBI) monetary policy, which is due at the end of this week. It is expected that there will be no change in interest rates, but investors are curious about the RBI's outlook and commentary.
Meanwhile, global markets are also keeping an eye on the potential stance of the US Federal Reserve.
