💥 Market Bleeds on Tariff Shock: Nifty Below 24,600 as RBI Holds Rates & Global Tensions Rise 💣

📰Daily Market Wrap-Up by Stock Whisperers- August 6, 2025

Author

thestock whisperers
August 06, 2025

August 6, 2025

📈 Market Overview:

Market Overview

Summary of the Day's Market Performance

  • The Sensex fell 166.26 points (-0.21%) to close at 80,543.99, marking a second consecutive decline.

  • The Nifty dropped 75.35 points (-0.31%) to 24,574.20, falling below 24,600.

  • Midcap and Smallcap indices declined 1% each, reflecting broader weakness.

  • PSU Bank rose 0.6%, while IT, Media, Realty, Pharma, and FMCG fell 1-2%.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Sold ₹4,999.10 crore

  • Domestic Institutional Investors (DII): Bought ₹6,794.28 crore

DII inflows provided support, but failed to offset heavy FII outflows amid tariff fears.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Markets held near the 24,500 support level despite renewed US trade tensions, triggered by Trump’s executive order imposing an additional 25% tariff on Indian imports (effective in three weeks, atop the 25% tariff starting Thursday, totaling 50% barring exemptions). Domestic resilience was evident, bolstered by the RBI’s neutral stance, unchanged policy rates, and strong rural demand.

  • Pharma underperformed due to tariff warnings, while a favorable inflation outlook—supported by a good monsoon and healthy kharif sowing—signals a robust second half, driven by consumption, private investment, and government capex. Investors remain cautious, focusing on domestic-oriented stocks.

  • Analysts expect Nifty to consolidate around 24,500–24,800, with support at 24,400—monitor US tariff implementation and RBI’s next steps.

❓ DO YOU KNOW?

The new 50% US tariff on Indian goods (effective August 29) targets $20 billion in exports, a sharp escalation from the 25% rate imposed since May, excluding steel, aluminum, and pharmaceuticals for now.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: Asian Paints, HDFC Life, Trent, Adani Ports, and Bharat Electronics

  • Top Losers: Wipro, Sun Pharma, Jio Financial, IndusInd Bank, and Tech Mahindra

  • Bajaj Auto fell after a 5.4% YoY Q1 FY26 profit rise to ₹2,096 crore, with margins hitting a multi-quarter low due to input costs.

  • Hero MotoCorp gained as Q1 FY26 profit rose 10.9% YoY to ₹1,122 crore, driven by export growth.

  • Gland Pharma surged 6% after a 25.1% YoY Q1 FY26 profit increase to ₹194 crore, fueled by US demand.

  • Adani Ports fell 0.89% to ₹1,376.50 as Gautam Adani was re-designated Non-Executive Chairman, no longer key managerial personnel.

  • Bharti Airtel traded flat after a 43% YoY Q1 FY26 profit jump to ₹5,948 crore, missing estimates.

  • JSW Energy rose after commissioning the second 80 MW unit of its 240 MW Kutehr Hydro Plant.

  • Allied Digital gained after securing a ₹420+ crore contract from a European client.

  • Wanbury fell 1.73% to ₹261.25 after a Q1 FY26 profit of ₹13.49 crore, up from ₹1.04 crore YoY, due to profit-taking.

  • TCS fell 2%, dragging the IT index 1.74% lower amid workforce reduction and weak global demand concerns.

  • Sun Pharma dropped due to Trump’s warning of potential 250% tariffs on Indian pharma imports.

Your Weekly Stock Markets Rundown: Markets Brace for Volatility Amid Trade and Earnings Focus

August 4-8, 2025

  • Earnings Season: Over 128 companies, including DLF, Adani Ports, and Bharti Airtel, will report Q1 FY26 results, with analysts noting mixed performances. Trent and Titan are among those to watch for consumer demand trends.

  • Trade Tensions: The August 1 US tariff deadline saw Trump extend talks with the EU and Canada, with a 50-50 chance of an EU deal. India-US negotiations are postponed to mid-August, keeping tariff risks alive, though domestic demand may cushion the impact.

  • US Data Impact: Weak July jobs data (expected unemployment at 4.2%) and non-farm payrolls on August 8 could influence Fed rate cut expectations, with a 75% probability of a 25-bps cut in September per market pricing.

  • Monsoon and Economy: A strong monsoon (90% of normal rainfall so far) supports rural demand, potentially boosting auto and FMCG stocks, while industrial production data due later will clarify manufacturing trends.

  • Technical Outlook: Nifty’s support at 24,300 and resistance at 24,900 suggest consolidation, with a break below 24,300 risking further downside to 24,000, amid F&O expiry volatility.

👀Stocks to Focus:

  • Hero MotoCorp: Auto sector strength to monitor.

  • Sun Pharma: Tariff impact on pharma to watch.

  • Gland Pharma: US demand resilience to observe.

📝Summary:

Indian markets fell 0.31%, with Nifty at 24,574, as US tariff hikes and sectoral weakness hit, though PSU Banks gained. DII buying cushioned FII outflows, with domestic resilience and a favorable inflation outlook providing support—focus on tariff fallout and RBI policy!

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