The Indian stock market witnessed a sharp decline on Friday, August 8, 2025. The Sensex plunged 765 points, and the Nifty fell 233 points, resulting in a loss of approximately ₹4 lakh crore for investors. The market experienced a sudden surge in selling pressure in the final hour. Factors contributing to the market's weakness included US tariffs, global uncertainty, pressure on the banking sector, and concerns about corporate earnings.
Stock market: On Friday, the Indian stock market closed with a significant decline on the last trading day of the week. The Sensex closed at 79,857.79, down by 765 points, and the Nifty closed at 24,363.30, falling by 233 points. This decline intensified in the last half-hour of the day. A sense of fear permeated the market following US President Trump's announcement of a 25% tariff on Indian goods, triggering widespread selling. This resulted in a loss of approximately ₹4 lakh crore for investors.
5 Major Reasons for the Market Downturn
New US Tariffs on India
US President Donald Trump announced an additional 25 percent tariff on Indian goods. This news triggered increased apprehension in the market. Companies exporting from India to the US are expected to be directly affected. This eroded investor confidence, leading them to book profits.
Banking and Financial Sector Under Most Pressure
The Nifty Bank Index closed down 516 points at 55,005 today. Weakness in the banking and financial sectors had the most significant impact on the Sensex and Nifty. All 12 banking shares closed in the red. Sharp declines were recorded in companies like IndusInd Bank and Shriram Finance.
Key Indices and Figures
- Sensex: Closed down 765 points at 79,857.79
- Nifty: Closed down 233 points at 24,363.30
- Nifty Bank: Closed down 516 points at 55,005
- Midcap Index: Closed down 936 points at 56,002
- Trading on NSE: Out of a total of 3,038 shares, 984 shares advanced, while 1,969 declined
- Investor Losses: Approximately ₹4 lakh crore in market cap was wiped out
Top Gainer Shares (Shares with the Highest Gains)
NTPC
- Closing Price: ₹334.75
- Gain: ₹5.00
Major company in the energy sector, saw b buying interest.
Titan Company
- Closing Price: ₹3,460.20
- Gain: ₹44.50
Expectations of good quarterly figures in the jewelry and watch segment.
Dr. Reddy’s Labs
- Closing Price: ₹1,211.40
- Gain: ₹10.60
Increased investor interest in the pharma sector.
HDFC Life
- Closing Price: ₹761.55
- Gain: ₹5.85
The strength in the insurance sector had an impact on the share.
Bajaj Finserv
- Closing Price: ₹1,919.20
- Gain: ₹5.20
Signs of improvement in financial services led to a rise in the share.
Top Loser Shares (Shares with the Highest Losses)
Adani Enterprises
- Closing Price: ₹2,178.10
- Decline: ₹71.70
Impact of market pressure and heavy selling.
Bharti Airtel
- Closing Price: ₹1,858.60
- Decline: ₹64.00
Concerns about competition and rising costs in the telecom sector.
Mahindra & Mahindra (M&M)
- Closing Price: ₹3,144.20
- Decline: ₹66.90
Uncertainty regarding demand in the auto sector.
IndusInd Bank
- Closing Price: ₹782.45
- Decline: ₹24.90
Anticipation of weak results in the banking sector.
Shriram Finance
- Closing Price: ₹609.65
- Decline: ₹17.70
Impact of profit booking in the finance sector.
Several major companies are scheduled to release their quarterly results next week. Investors are adopting a cautious stance regarding these results. A weak sentiment prevailed in the market due to concerns about a potential decline in company earnings. Consequently, heavy selling was observed in midcap and smallcap shares.
