On August 5, 2025, the Indian stock market closed lower, with the Sensex and Nifty declining amid global market sell-offs and profit-taking in key sectors. Weak Q1 earnings and renewed US tariff concerns triggered the downturn. Below is a precise summary of the day’s market performance, key drivers, and sectoral trends.
Market Performance
BSE Sensex: Fell 308.47 points (0.38%) to close at 80,710.25, with an intraday high of 81,018.72 and a low of 80,599.91.
NSE Nifty 50: Dropped 73.20 points (0.30%) to settle at 24,649.55, trading between 24,722.75 and 24,565.35 intraday.
Market Breadth: On the BSE, ~1,600 stocks advanced, 2,400 declined, and 150 were unchanged out of ~4,150 traded stocks. About 160 stocks hit the upper circuit, and 170 hit the lower circuit.
Volatility: The India VIX surged 8% to ~17.0, reflecting heightened uncertainty due to global sell-offs and domestic earnings concerns.
Key Drivers
Global Market Cues: Sharp declines in global markets, with the S&P 500 futures down 0.6%, Nikkei 225 (-2%), and European indices falling, pressured sentiment. Renewed US tariff concerns and fears of a US economic slowdown added to the bearish mood.
Earnings Season: Disappointing Q1 FY26 earnings, particularly in IT and banking, fueled profit-taking, overshadowing gains in select energy stocks.
FII and DII Activity: Foreign Institutional Investors (FIIs) sold ~₹2,800 crore, while Domestic Institutional Investors (DIIs) bought ~₹1,200 crore, limiting losses.
Rupee Movement: The Indian rupee weakened 10 paise to 86.63 against the US dollar, impacted by FII outflows and a stronger dollar (DXY at 97.30).
Domestic Macros: Strong GST collections (₹2.01 lakh crore, May 2025) and an above-normal monsoon provided some support, but global concerns dominated.
Sectoral Highlights
Sectoral Trends: Nifty Energy (+0.6%) and Pharma (+0.4%) showed resilience, while Nifty Bank (-1.3%), IT (-1.7%), and Auto (-1%) led losses. Nifty Midcap 100 and Smallcap 100 fell 0.9% and 1.2%, respectively.
Broader Market: Selling was broad-based, with large-cap banking and IT dragging, and mid and small-caps amplifying losses.
Market Sentiment: The market opened lower and remained under pressure, with GIFT Nifty futures at ~24,600 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: Weak Q1 results continued to weigh on banking sentiment.
HDB Financial Services: Post-IPO listing performance stabilized, aiding financials.
Tata Consumer: Q1 earnings miss impacted 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 ~17.0 suggests elevated volatility, driven by global sell-offs and earnings.
Upcoming Triggers: US Federal Reserve comments, India’s CPI data, Q1 FY26 earnings, and global trade developments will guide sentiment. Monsoon progress and oil prices remain critical.
Conclusion
On August 5, 2025, the Indian stock market closed lower, with the Sensex at 80,710.25 (down 0.38%) and Nifty at 24,649.55 (down 0.30%), driven by global sell-offs, weak Q1 earnings in banking and IT, 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 global trade and CPI data.
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