On August 7, 2025, the Indian stock market closed marginally higher in a volatile session, recovering from early losses as bargain hunting in select sectors offset global recession fears. The Sensex and Nifty ended with modest gains, driven by defensive stocks, despite weak Q1 earnings and global sell-offs. Below is a precise summary of the day’s market performance, key drivers, and sectoral trends.
Market Performance
BSE Sensex: Gained 79.27 points (0.10%) to close at 80,623.26, with an intraday high of 80,710.25 and a low of 80,543.99.
NSE Nifty 50: Rose 21.95 points (0.09%) to settle at 24,596.15, trading between 24,649.55 and 24,574.20 intraday.
Market Breadth: On the BSE, ~2,000 stocks advanced, 2,000 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 eased 3% to ~18.2, indicating slightly reduced uncertainty but still elevated due to global concerns.
Key Drivers
Global Market Cues: Global markets remained volatile, with the S&P 500 futures down 0.5% and Nikkei 225 (-1.5%), driven by persistent US recession fears after weak jobs data. Easing US tariff concerns provided some relief.
Earnings Season: Mixed Q1 FY26 earnings, with weak performances in banking and IT, were offset by selective strength in pharma and FMCG, supporting bargain hunting.
FII and DII Activity: Foreign Institutional Investors (FIIs) sold ~₹2,500 crore, while Domestic Institutional Investors (DIIs) bought ~₹1,600 crore, cushioning losses.
Rupee Movement: The Indian rupee strengthened 5 paise to 86.70 against the US dollar, supported by DII inflows and a slightly weaker dollar (DXY at 97.40).
Domestic Macros: Strong GST collections (₹2.01 lakh crore, May 2025) and an above-normal monsoon provided support, though global recession fears dominated sentiment.
Sectoral Highlights
Sectoral Trends: Nifty Pharma (+0.8%) and FMCG (+0.6%) led gains, while Nifty Bank (-0.9%), IT (-1%), and Auto (-0.7%) dragged. Nifty Midcap 100 and Smallcap 100 fell 0.6% and 0.8%, respectively.
Broader Market: Defensive large-cap stocks like pharma and FMCG drove gains, while mid and small-caps saw selling pressure.
Market Sentiment: The market opened lower but recovered intraday due to selective buying. GIFT Nifty futures at ~24,600 signaled a neutral outlook for the next session.
Corporate Developments
Dr Reddy’s: Q1 profit rose 15% YoY to ₹1,400 crore, boosting pharma sentiment.
Maruti Suzuki: Q1 results missed estimates, weighing on auto stocks.
IRB Infrastructure: Secured a ₹1,200 crore highway project, supporting infra sentiment.
Bharti Airtel: Q1 results showed strong ARPU growth, lifting telecom stocks.
IndusInd Bank: Announced a ₹500 crore bond issue, aiding banking 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 ~18.2 suggests continued volatility, driven by global recession fears and earnings.
Upcoming Triggers: India’s CPI data, US Federal Reserve comments, Q1 FY26 earnings, and global trade developments will guide sentiment. Monsoon progress and oil prices remain critical.
Conclusion
On August 7, 2025, the Indian stock market closed marginally higher, with the Sensex at 80,623.26 (up 0.10%) and Nifty at 24,596.15 (up 0.09%), led by pharma and FMCG amid global sell-offs and weak Q1 earnings in banking and IT. DII buying and a stronger rupee provided support, but a high 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.
Disclaimer: Investments in securities are subject to market risks. Please consult a qualified financial advisor before investing.