Confluence Of Global, Domestic Concerns; Nifty shed over 200 points to slip below the 24,600 mark, while the Sensex lost more than 600 points intraday
Gaurav Garg,
Lemonn Markets Desk
Mumbai, 1 August, 2025: Markets ended the week on a sharply negative note as investor sentiment was rattled by a confluence of global and domestic concerns. The Nifty shed over 200 points to slip below the 24,600 mark, while the Sensex lost more than 600 points intraday. Pressure was evident across sectors, with pharma, metals, and energy stocks bearing the brunt of the selling. Notably, pharma stocks were hammered after US President Donald Trump wrote to global drugmakers, including Indian firms, urging price reductions. Sun Pharma, Cipla, and Dr. Reddy’s were among the worst-hit, each falling up to 5%.
The broader market weakness was amplified by continued FII selling, weak global cues, and a rise in volatility. The imposition of a 25% reciprocal tariff on Indian exports by the US further dented sentiment. Meanwhile, the India VIX edged higher, reflecting rising investor caution. Technical charts indicate that while the index remains vulnerable below 24,600, any stability above 24,675 may invite a short-term bounce. However, the next decisive move will likely hinge on global market stability and institutional flows.
According to Shrikant Chouhan, Head, Equity Research, Global equity markets were mostly weak over the past week, as the US tariff saga continued. The Indian equity market continued to underperform global equity markets in the past week and was down 0.8% over this period. Nifty Midcap and Small cap underperformed by declining 1.2% and 1.7% respectively. The US imposed 25% tariffs on Indian exports, while existing exemptions remained in place. USD-INR depreciated by 1.2% in the past week. FMCG (+3.0%) was the top gainer, while realty (-5.5%), IT (-2.5%), Telecom (-4.2%), Pharma (-2.9%) and metals (-3.1%) were the major losers. The market focused on earnings and management commentary during the 1QFY26 earnings season. While aggregate earnings were broadly in line with estimates, the outlook remained muted, resulting in continued cuts in earnings estimates. FIIs remain net sellers and DIIs remain net buyers.
In Global, in US, Trump announced 40% tariffs on transhipped goods and new rates for dozens of countries just before the August 1 deadline. The move follows a pattern of late-night shifts that have become a hallmark of Trump’s unpredictable trade strategy. In Europe, Annual euro zone inflation came in at 2% in July, unchanged from June. The reading was higher than the 1.9% expected by economists polled by Reuters. Asia-Pacific markets fell this week after U.S. President Donald Trump modified “reciprocal” tariff rates on several countries, ranging from 10% to 41%.
