On August 1, 2025, the Indian stock market closed lower, extending losses in a volatile session as global uncertainties and profit-taking in key sectors weighed on sentiment. The Sensex and Nifty fell sharply, driven by weak Q1 earnings and concerns over US tariffs. Below is a precise summary of the day’s market performance, key drivers, and sectoral trends.
Market Performance
BSE Sensex: Dropped 585.67 points (0.72%) to close at 80,599.91, with an intraday high of 81,185.58 and a low of 80,599.91.
NSE Nifty 50: Fell 203.00 points (0.82%) to settle at 24,565.35, dipping below 24,600 intraday, with a range of 24,768.35 to 24,565.35.
Market Breadth: On the BSE, ~1,700 stocks advanced, 2,300 declined, and 150 were unchanged out of ~4,150 traded stocks. About 160 stocks hit the upper circuit, and 160 hit the lower circuit.
Volatility: The India VIX surged 7% to ~16.4, reflecting heightened uncertainty amid global trade concerns and earnings disappointments.
Key Drivers
Global Market Cues: Weak global markets, with the S&P 500 futures down 0.4% and Nikkei 225 (-0.6%), pressured sentiment. The US tariff deadline (August 1) and Federal Reserve’s unchanged rates at 4.25%–4.5% with a hawkish outlook fueled caution.
Earnings Season: Disappointing Q1 FY26 earnings, particularly in banking and IT, triggered profit-taking, overshadowing gains in select energy and pharma stocks.
FII and DII Activity: Foreign Institutional Investors (FIIs) sold ~₹3,000 crore, while Domestic Institutional Investors (DIIs) bought ~₹1,500 crore, mitigating losses.
Rupee Movement: The Indian rupee weakened 7 paise to 86.58 against the US dollar, impacted by FII outflows and a stronger dollar (DXY at 97.20).
Domestic Macros: Strong GST collections (₹2.01 lakh crore, May 2025) and an above-normal monsoon provided some support, but global trade concerns dominated.
Sectoral Highlights
Sectoral Trends: Nifty Energy (+0.5%) and Pharma (+0.4%) showed resilience, while Nifty Bank (-1.5%), IT (-1.8%), and Realty (-1.3%) led losses. Nifty Midcap 100 and Smallcap 100 fell 0.8% and 1%, respectively.
Broader Market: Selling was broad-based, with large-cap banking and IT dragging, while selective buying occurred in mid and small-caps.
Market Sentiment: The market opened lower and remained under pressure, with GIFT Nifty futures at ~24,550 signaling a bearish bias for the next session.
Corporate Developments
Adani Green: Q1 profit up 31% YoY to ₹824 crore, supporting energy gains.
Waaree Energies: Q1 net profit rose 89% to ₹745 crore, boosting renewables.
HDFC Bank: Q1 results missed estimates, contributing to banking sector weakness.
HDB Financial Services: Post-IPO listing stabilized, aiding financials.
Tata Consumer: Weak Q1 results continued to impact FMCG sentiment.
Market Outlook
Technical Levels: Nifty support at 24,500–24,400 (100-day EMA), resistance at 24,750–24,950. Sensex support at 80,500–80,000, resistance at 81,300–82,200. A break below 24,400 could target 24,200.
Volatility Expectations: VIX at ~16.4 suggests heightened volatility, driven by US tariff outcomes and earnings.
Upcoming Triggers: Federal Reserve comments, US Core PCE data, India’s Q1 FY26 earnings, and US tariff resolution will drive sentiment. Monsoon progress and oil prices remain critical.
Conclusion
On August 1, 2025, the Indian stock market closed lower, with the Sensex at 80,599.91 (down 0.72%) and Nifty at 24,565.35 (down 0.82%), driven by selling in banking and IT amid weak Q1 earnings and US tariff concerns. Energy and pharma sectors showed resilience, but FII selling and a rising VIX signaled caution. Investors should monitor Nifty’s 24,500 support and focus on energy and pharma while staying vigilant for US trade and Fed developments.
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