The Indian stock market experienced significant declines on August 8, 2025, with the Nifty 50 falling by 168 points to close at 24,427.95. The broader Sensex index also dropped by 535 points to 80,087.67. Market participants reacted to heightened trade tensions following President Donald Trump‘s announcement of an additional 25% tariff on Indian exports, raising the total tariff rate to 50%. This development has intensified concerns about the impact on export-oriented sectors, particularly textiles and seafood.
Sectoral performance reflected this negative sentiment, with broad-based declines across major indices. The Nifty Bank index fell by 411.45 points, or 0.74%, ending the session at 55,109.70, while the Nifty IT sector dropped 246.30 points, or 0.71%, to settle at 34,480.50. The BSE SmallCap index also saw a decrease, losing 146.65 points, or 0.28%, to close at 51,989.68. Notably, the Nifty 50 is now 1,733.1 points below its record high of 26,277.35, highlighting a significant market correction.
Investor anxiety is largely attributed to the ongoing US-India trade conflict, which has emerged as a primary driver of market instability. According to CNBC TV 18, the textiles sector was particularly hard hit, with companies like Gokaldas Exports, KPR Mill, and Trident experiencing losses ranging from 0.7% to 3%. Seafood exporters faced sharp declines as well, with Avanti Feeds dropping 4% and Apex Frozen Foods falling nearly 3%. Port operators, including Adani Ports, continued to trend downward, losing 1.78% during the trading session.
Despite the overall market downturn, some stocks within the Nifty 50 managed to post gains. NTPC increased by 2.09% to Rs. 336.65, while Titan Company gained 1.53% to Rs. 3,468. Trent also saw a rise of 1.04%, closing at Rs. 5,358.50. Other gainers included HDFC Life, which rose by 0.67% to Rs. 760.80, and Tata Consumer Products, up 0.49% at Rs. 1,058. Nevertheless, declines far outnumbered gains, with Adani Enterprises falling 3.28% to Rs. 2,175.90 and Bharti Airtel down 2.71% to Rs. 1,870.50.
The current earnings season has delivered mixed results, contributing to the market’s uncertainty. For instance, Kalpataru Projects International reported a remarkable 154.4% increase in profit, reaching Rs. 213.6 crore, with revenue rising by 34.5% to Rs. 6,171.2 crore. Conversely, Crompton Greaves Consumer Electricals experienced a 19.4% decline in profit, amounting to Rs. 122.3 crore, alongside a 6.5% drop in revenue to Rs. 1,998.3 crore. Similarly, Sun TV Network reported weaker performance, with a profit decrease of 5.4% to Rs. 529.1 crore.
In light of these developments, institutional flows have played a crucial role in market dynamics. Foreign institutional investors (FIIs) continued to sell off shares, resulting in net outflows of Rs. 4,997.19 crore on August 7, following a previous outflow of Rs. 4,999.10 crore. In contrast, domestic institutional investors (DIIs) provided some support with net inflows of Rs. 10,864.04 crore, which helped cushion the market against greater losses.
From a technical perspective, the Nifty 50 faces a critical juncture. Analysts suggest that a close above 24,565 is necessary to avoid a sixth consecutive weekly loss, a pattern not observed since February-March 2020 when the index corrected for seven weeks. The Indian rupee remained stable, trading at 87.68 per dollar, slightly stronger than its previous close.
The session on August 8 underscored the challenges confronting Indian equities, as the Nifty 50 struggled to maintain levels above 24,450. While domestic institutional buying provided a glimmer of hope, the combination of trade war uncertainties and mixed earnings reports poses significant obstacles to market recovery. Investors are advised to adopt a cautious stance, focusing on fundamentally strong companies that are well-positioned to navigate these turbulent times.
The market outlook remains uncertain, with ongoing trade negotiations and corporate earnings trends set to significantly influence investor sentiment in the coming days.
