The headline equity benchmarks ended with significant losses today, as investors turned cautious following the U.S. imposition of steep tariffs on multiple trade partners and the reaffirmation of a 25% import duty on Indian goods. Investors were also monitoring the ongoing earnings season. The Nifty settled below the 24,600 level after hitting the day's high of 24,784.15 in mid-morning trade.
Barring the Nifty FMCG index, all the other sectoral indices on the NSE ended in red.
As per provisional closing data, the barometer index, the S&P BSE Sensex declined 585.67 points or 0.72% to 80,599.91. The Nifty 50 index lost 203 points or 0.82% to 24,565.35.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index slipped 1.37% and the S&P BSE Small-Cap index declined 1.59%.
The market breadth was weak. On the BSE, 1,307 shares rose and 2,711 shares fell. A total of 151 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 3.74% to 11.98.
Economy
India's manufacturing sector saw its strongest performance in four months in July, according to the HSBC India Manufacturing Purchasing Managers' Index (PMI). The index rose from 58.4 in June to 59.1 in July, indicating a solid improvement in business conditions. A score above 50 signals growth, while below 50 indicates contraction.
The rise was mainly driven by a sharp increase in new orders, as companies benefited from strong demand and effective marketing efforts. In fact, sales grew at their fastest pace in nearly five years, highlighting growing confidence in the manufacturing sector.
Trump Imposes 25% Tariff on Indian Imports:
US President Donald Trump signed an order yesterday imposing a fresh 25% import duty on Indian goods, which is set to take effect from August 7, along with an unspecified penalty, escalating trade tensions despite ongoing negotiations. The move, attributed to India's high tariffs on US goods and continued imports of Russian oil and military equipment, has surprised markets and triggered volatility. This new blanket duty will significantly raise the cost of Indian exports to the US, with some products like textiles potentially facing tariffs as high as 34%. The White House is also expected to detail further penalties through an executive order.
IPO Update:
The initial public offer (IPO) of National Securities Depository received bids for 90,21,02,436 shares as against 3,51,27,002 shares on offer, according to stock exchange data at 15:30 IST on Friday (01 August 2025). The issue was subscribed 25.68 times.
The initial public offer (IPO) of M&B Engineering received bids for 24,55,53,682 shares as against 97,98,309 shares on offer, according to stock exchange data at 15:30 IST on Friday (01 August 2025). The issue was subscribed 25.06 times.
The initial public offer (IPO) of Sri Lotus Developers and Realty received bids for 2,25,76,05,200 shares as against 3,96,58,730 shares on offer, according to stock exchange data at 15:30 IST on Friday (01 August 2025). The issue was subscribed 56.93 times.
New Listing:
Shares of Shanti Gold International were at Rs 229.20 on the BSE, representing a premium of 15.18% compared with the issue price of Rs 199.
The scrip was listed at Rs 229.10, exhibiting a premium of 15.13% to the issue price.
The stock has hit a high of Rs 238.40 and a low of Rs 227. On the BSE, over 27.90 lakh shares of the company were traded in the counter.
Buzzing Index:
The Nifty Pharma index slumped 3.33% to 22,011.70. The index tumbled 4.60% in two consecutive trading sessions.
Aurobindo Pharma (down 5.26%), Granules India (down 4.87%), Sun Pharmaceutical Industries (down 4.51%), Gland Pharma (down 4.18%), Dr Reddys Laboratories (down 3.91%), Divis Laboratories (down 3.55%), Cipla (down 3.33%), Lupin (down 3.2%), Glenmark Pharmaceuticals (down 3.11%) and Laurus Labs (down 2.86%) declined.
July Auto Sales Impact:
Eicher Motors added 1.03%. The company's unlisted subsidiary, VE Commercial Vehicles (VECV), reported a 7.4% year-on-year jumped in commercial vehicle (CV) sales to 7,115 units in July 2025.
Further, the company's monthly motorcycle sales in July 2025 stood at 88,045 units, which is higher by 31% compared with 67,265 units in the same month a year ago.
Separately, Eicher's consolidated net profit jumped 9.42% to Rs 1,205.22 crore in Q1 FY26 as against Rs 1,101.4 crore posted in Q1 FY25. Total revenue from operations rose 14.76% year on year to Rs 5,041.84 crore in the quarter ended 30 June 2025.
Mahindra & Mahindra (M&M) declined 1.22%. The company said that its overall auto sales grew by 25.95% to 83,691 vehicles sold in July 2025 as against 66,444 vehicles sold in July 2024.
Further, the company's Farm Equipment Sector (FES) announced that its total tractor sales (domestic + exports) during July 2025 were at 28,708 units, up 5.50% from 27,209 units sold during the same period last year.
TVS Motor Company advanced 2.14% after the company has registered sales of 456,350 units in July 2025, which is higher by 29% as comparesd with the 354,140 units sold in July 2024.
Bajaj Auto added 0.63%. The company has reported 3% rise in total auto sales for July 2025, selling 3.66 lakh units as against 3.54 lakh units sold in July 2024
SML Isuzu hit an upper circuit of 5% after the company said that it has sold 1,427 units in July 2025, registering a growth of 18.6% from 1,203 units sold in the same period last year.
Ashok Leyland shed 0.66%. The company reported an 8% rise in total commercial vehicle sales to 15,064 units in July 2025 from 13,928 units sold in July 2024.
Maruti Suzuki India declined 2.65%. The company reported total sales of 180,526 units in July 2025, marking a 3.13% increase compared to 175,041 units sold in the same month last year.
VST Tillers Tractors slipped 1.38%. The company's total sales surged 16.74% to 6,471 units in July 2025 from 5,543 units sold in July 2024.
Atul Auto shed 0.06%. The company reported 5.64% increase in total sales to 2,717 units in July 2025 as against 2,572 units sold in July 2024.
Steel Strips Wheels (SSWL) dropped 5%. The company reported a net turnover of Rs 378.87 crore for July 2025, up 4.47% YoY growth compared to Rs 362.64 crore posted in July 2024.
Escorts Kubota slipped 2.87%. The tractor manufacturer announced that its agri-machinery business division sales grew by 2.7% to 7,154 units in July 2025 as against 6,963 units sold in July 2024.
Stocks in Spotlight:
Procter & Gamble Health rallied 4.96% after the company's standalone net profit soared 294.4% to Rs 66.18 crore in Q1 FY26 compared with Rs 16.78 crore in Q1 FY25. Revenue from operations jumped 19.33% YoY to Rs 338.74 crore in Q1 FY26, driven by broad-based growth in domestic and exports business.
Larsen & Toubro (L&T) declined 1.06%. The company announced that its Minerals & Metals (M&M) business vertical has secured an order from Hindustan Zinc (HZL), a Vedanta Group company, for a large engineering, procurement and construction (EPC) opportunity.
PNB Housing Finance slumped 17.68% after the bank announced that MD & CEO Girish Kousgi resigned to pursue external career opportunities.
JSW Energy shed 0.29%. The company's consolidated net profit jumped 42.43% to Rs 743.12 crore on 78.62% increase in revenue from operations to Rs 5,143.37 crore in Q1 FY26 over Q1 FY25.
Chambal Fertilisers and Chemicals advanced 1.53% after the company's consolidated net profit surged 22.4% to Rs 548.89 crore on a 15.5% jump in revenue from operations to Rs 5,697.61 crore in Q1 FY26 over Q1 FY25.
Credo Brands Marketing (Mufti) was locked in 20% lower ciruit after the company's consolidated net profit tumbled 35.52% to Rs 6.30 crore on 3.19% decline in revenue from operations to Rs 119.93 crore in Q1 FY26 over Q1 FY25.
Coal India (CIL) shed 0.97%. The company has posted 20% fall in consolidated net profit to Rs 8,734 crore on a 4% fall in net sales to Rs 31,880 crore in Q1 FY26 as compared with Q1 FY25.
Barbeque-Nation Hospitality slipped 3.79% after the company's consolidated net loss widened to Rs 16.40 crore in Q1 FY26 compared with net loss of Rs 4.86 crore in Q1 FY25. Revenue from operations fell 2.85% YoY to Rs 296.98 crore in Q1 FY26, primarily due to softer sales in the India business.
Chalet Hotels declined 2.56%. The company's consolidated net profit zoomed 234.89% to Rs 203.15 crore on 147.79% increase in revenue from operations to Rs 894.55 crore in Q1 FY26 over Q1 FY25.
Netweb Technologies India rallied 5.39% after the company's standalone net profit surged 100.03% to Rs 30.47 crore on 101.73% jump in revenue from operations to Rs 301.21 crore in Q1 FY26 over Q1 FY25.
Global Markets:
The US Dow Jones index futures were currently down by 441 points, signaling a weak opening for US stocks today.
European market declined on Friday, as investors awaited key regional inflation data and the closely watched monthly U.S. jobs report.
Most Asian markets ended lower after U.S. President Donald Trump announced sweeping new tariffs on American trading partners, citing trade imbalances and national security concerns.
The decision, signed late Thursday, is set to go into effect on 7 August and covers a wide range of goods from 69 countries and the 27-member European Union.
Countries facing the highest rates include Syria at 41 percent, Switzerland at 39 percent, Laos and Myanmar at 40 percent, Iraq and Serbia at 35 percent, and Libya and Algeria at 30 percent. Others like Taiwan, India, and Vietnam fall in the 20 to 25 percent range.
The European Union reached a deal under which goods with existing duty rates above 15 percent are exempt, while others will see adjusted levies. For countries not listed, a default rate of 10 percent will apply.
Meanwhile, Japan's unemployment rate was unchanged at 2.5% in June, from the previous month, government data released Friday showed. There were 122 job openings for every 100 job seekers in June, lower than the 124 openings for every 100 job seekers in the previous month.
Stocks on Wall Street closed lower on Thursday, with the S&P 500 posting its third consecutive losing session.
The broad market index fell 0.37% to settle at 6,339.39, while the Nasdaq Composite edged down 0.03% to 21,122.45. The Dow Jones Industrial Average declined 330.30 points, or 0.74%, closing at 44,130.98.
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