BSE SENSEX tumbled 500 points, to act below 80,200, while the NSE Nifty throws more than 150 points to act below the level of 24,500.
Here are five important factors that float today:
1. Trump’s 50% rates
Export -oriented sectors carried the victim of the sale after the decision of US President Trump to increase rates on Indian export to 50%, a retaliation of the continuous oil trade in India with Russia. It marks one of the steepest tariff increases that once imposed an American trading partner and rattled the trust of investors in several sectors.
“The escalation of 25% to 50% rates will cause sector-specific pressure instead of broad market disruption for Indian shares. The Nifty 50’s limited 9% direct exposure to the US, mainly concentrated in IT services exempt from goods-based duties, offers substantial insulation, said nitantysis.”
Yet Darekar marked the pressure on precious stones, jewelry, clothing, textiles and chemical sectors that represent a vulnerable RS 8,000 crore export segment. “The most impact sectors are textiles (gokaldas/kitex), chemicals (Camlin, Aarti and Atul), and Auto ANCS (BHFC/Suprajit/Suprajit/Suprajit/Suprajit/Suprajit/Suprajit/Suprajit/Suprajit/Suprajit/Suprajit/Suprajit/Suprajit/Suprajit/Saying ‘, ” Emkay Global.organ Stanley warned that only the Indian export industry of seafood ‘is confronted with a potential loss of RS 24,000 crore due to the American doubling rates up to 50%.
“Indian textile and clothing exporters stop production of the American order due to President Trump’s rate to 50%, which seriously influences their competitiveness to countries such as Bangladesh and Vietnam,” said Morgan Stanley, who predicted the export loss and general uncertainty in the sector. “
Under the surface, exporters about textiles, seafood, gems and jewelry, chemicals and auto-annquaries struggle with stopped orders and evaporation margins, which means that the stage is for possible effects of the second order if the tariff regime continues to exist.
2) FII sales will continue
As an addition to downward pressure, foreign institutional investors (FIIs) remained in sales mode for the tenth straight session. On 7 August alone, they pulled RS 4,997.19 Crore from Indian shares, with a total of Augustus that now more than RS 15,950 Crore.
The $ 4 billion exodus since July indicates deeper discomfort. Worldwide investors seem to be repositioning in response to a shifting risk-release profile, now complicated by the rate escalation of President Trump. Although the domestic sentiment does not yet have to praise completely in the damage, FIIs are already acting on it.
“FIIs have so far sold on all trade days in August,” said Dr. VK Vijayakumar, main investment strategist, Geojit Financial Services. “These weak indicators, together with the relatively high ratings in India, cause persistent sale by the FIIs.”
According to Vijayakumar, the market remains both technically and fundamentally weak. “There are no indications of a sharp increase in income for FY26,” he said.
“In the current context of negative sentiments in the market caused by the tariff fencers between India and the US, FIIs will probably continue to sell on the greenhouse market,” he added. Vijayakumar, however, noted that “the only saving grace is the persistent DII purchasing that remains strong. The strong DII purchases assisted by persistent streams in investment funds can prevent a crash in the market.”
3. Q1 income provides little coverage
Operating results have not offered support in the light of the growing worldwide stress. The Nifty IT index has lost 10% in the past month and Nifty Bank has shown little Momentum.
An analysis of Economic Times showed that India’s top nine private banks only booked 2.7% on an annual basis of the profit growth of the first year in Q1, as a result of weak credit appetite and slow macro-momentum.
“The domestic stock market navigated a volatile week characterized by increased uncertainty about trading negotiations and modest income,” said Vinod Nair, head of research at Geojit Investments.
4. Dollar Surge connections Pain
The US dollar index collected 2.5% last week to violate the 100 Mark, the best weekly profit in almost three years, which increased the costs of foreign debt and intensify capital flows of emerging markets.
The index was traded at 98.188 on Friday, an increase of 0.2%, because the strength in the Greenback continued to weigh on EM currencies and stock flows.
5. Technical to signal fragile support
Despite the weakness, some technical indicators indicate possible support in the short term. “With 88% of the Nifty 500 shares that bounce at least 1% discount on the lows of the day, there is a broad recovery in sight,” said Anand James, main market strategist at Geojit Financial Services.
“The handy pause not far from the most important pivot point of 24,590 is a sign of a measured upward movement, which has the potential to evolve to a stronger push,” he said.
“But we will start with a limited top view of 24670–717, with the intention to play a bigger advantage at 24850-25000. Downside Marker can be placed near 24548,” said James.
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((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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