The Indian stock market commenced trading on July 31, 2025, with a significant downturn. Weak global cues and an announcement by US President Donald Trump regarding a 25 percent tariff on India triggered panic among investors. As the opening bell rang, the BSE Sensex plunged 538 points to 80,943.79, while the NSE Nifty declined 167 points, settling at 24,687.60.
Selling Pressure Dominates Across Sectors
The market slump was evident across almost all sectors. The Nifty Auto, Realty, Metal, and Banking indices were particularly under pressure. In the initial hour of trading, approximately 129 stocks registered declines, while only 35 stocks showed marginal gains.
Top Losers: Tata Motors, Reliance, and Titan Hit Hard
Several major companies experienced a fall in their share prices during the market decline. Tata Motors' stock suffered the most significant losses. The company recently announced the acquisition of Italian truck manufacturer Iveco for $4.4 billion, a deal that seemingly did not sit well with investors. Additionally, Reliance Industries and Titan Company also witnessed substantial declines in their share values.
Some Stocks Witness Buying Interest
While the majority of stocks experienced declines, certain companies attempted to provide some support to the market. Jio Financial, SBI Life Insurance, and Tata Steel shares saw an increase. Dr. Reddy's Labs also performed well within the pharmaceutical sector.
Direct Impact of Tariffs on the Market
The impact of US President Donald Trump's tariff announcement was directly observed on the Indian stock market. Trump has stated that a 25 percent reciprocal tariff will be imposed on several countries, including India, starting August 1st. This tariff could directly affect Indian exports, potentially leading to a reduction in the profits of Indian companies.
Break on Previous Day's Gains
On July 30th, the market had concluded trading with a slight gain. The Sensex closed 143 points higher at 81,481, while the Nifty rose 34 points to reach 24,855. However, Trump's tariff announcement reversed these gains.
Rupee Weakens Against the Dollar
The rupee also experienced weakness on Thursday. The rupee opened 29 paise lower at 87.71 against the US dollar. The strengthening demand for the dollar and global uncertainty put pressure on the rupee.
Sectoral Performance Overview
Amidst the market decline, some sectors registered slight gains. Limited profits were observed in the Nifty IT, Pharma, and FMCG indices. Conversely, the Realty and Auto sectors fared the worst. The Nifty Realty index fell by approximately 1 percent, and the Auto index declined by 0.6 percent.
India VIX Also Declines
The India VIX, an index that measures market volatility, closed at 11.21, down by 2.77 percent. This indicates that investors are currently not gripped by fear, but uncertainty remains.
Corporate Activities of Companies
Amidst the market downturn, several companies made corporate announcements. Reliance Retail launched the Ayurveda brand Purveda, which will now be sold on the 'Tira' platform. BPCL announced the record date for dividends, providing some relief to investors.
Investors Eyeing Dividend and Bonus Stocks
Shares of several companies are trading ex-dividend and ex-bonus today. Investors are keeping a close watch on stocks of companies such as Balkrishna Industries, Coforge, Carborundum Universal, JK Tyre, and V-Guard. These companies have attempted to attract investors through dividends and bonuses.
Stocks to Watch
In today's trading session, attention will be focused on major stocks such as HUL, Vedanta, Coal India, and Tata Steel. Furthermore, the activities of companies like HEG, Aurobindo Pharma, Indraprastha Gas, and Navin Fluorine could also impact the market.
