On August 6, 2025, the Indian stock market closed lower, continuing its downward trend amid a global market rout triggered by US recession fears and weak domestic earnings. The Sensex and Nifty fell in a volatile session, with selling pressure in banking, IT, and auto sectors outweighing gains in select defensive stocks. Below is a precise summary of the day’s market performance, key drivers, and sectoral trends.
Market Performance
BSE Sensex: Dropped 166.26 points (0.21%) to close at 80,543.99, with an intraday high of 80,710.25 and a low of 80,499.91.
NSE Nifty 50: Fell 75.35 points (0.31%) to settle at 24,574.20, trading between 24,649.55 and 24,565.35 intraday.
Market Breadth: On the BSE, ~1,600 stocks advanced, 2,500 declined, and 150 were unchanged out of ~4,150 traded stocks. About 150 stocks hit the upper circuit, and 180 hit the lower circuit.
Volatility: The India VIX surged 10% to ~18.7, reflecting heightened uncertainty amid global and domestic concerns.
Key Drivers
Global Market Cues: A sharp global sell-off, with the S&P 500 futures down 0.8%, Nikkei 225 (-3%), and European indices falling, was driven by US recession fears following weak jobs data and rising unemployment concerns. Uncertainty over US tariffs added pressure.
Earnings Season: Disappointing Q1 FY26 earnings, particularly in banking, IT, and auto, fueled profit-taking, overshadowing gains in energy and pharma.
FII and DII Activity: Foreign Institutional Investors (FIIs) sold ~₹3,500 crore, while Domestic Institutional Investors (DIIs) bought ~₹1,800 crore, mitigating losses.
Rupee Movement: The Indian rupee weakened 12 paise to 86.75 against the US dollar, impacted by FII outflows and a stronger dollar (DXY at 97.50).
Domestic Macros: Strong GST collections (₹2.01 lakh crore, May 2025) and an above-normal monsoon provided some support, but global recession fears dominated.
Sectoral Highlights
Sectoral Trends: Nifty Pharma (+0.6%) and FMCG (+0.4%) showed resilience, while Nifty Bank (-1.5%), IT (-1.8%), and Auto (-1.2%) led losses. Nifty Midcap 100 and Smallcap 100 fell 1% and 1.3%, 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 ~24,550 signaling a bearish bias for the next session.
Corporate Developments
Sun Pharma: Reported a 40% YoY Q1 profit rise to ₹2,900 crore, boosting pharma sentiment.
Bajaj Finance: Q1 results missed estimates, dragging financials.
RVNL: Secured a ₹739 crore railway project, supporting infrastructure stocks.
L&T: Won a significant order in the Middle East, lifting engineering sentiment.
Zomato: Q1 profit doubled YoY, aiding consumer tech stocks.
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 ~18.7 suggests elevated volatility, driven by global recession fears and earnings.
Upcoming Triggers: US Federal Reserve comments, India’s CPI data (due soon), Q1 FY26 earnings, and global trade developments will guide sentiment. Monsoon progress and oil prices remain critical.
Conclusion
On August 6, 2025, the Indian stock market closed lower, with the Sensex at 80,543.99 (down 0.21%) and Nifty at 24,574.20 (down 0.31%), driven by a global sell-off, weak Q1 earnings in banking, IT, and auto, and US recession fears. Pharma and FMCG showed resilience, but FII selling and a rising VIX signaled caution. Investors should monitor Nifty’s 24,500 support and focus on defensive sectors like pharma and FMCG while staying vigilant for global economic and CPI data.
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