Indian stock markets witnessed a sharp decline on August 7, as global cues turned negative after US President Donald Trump announced a 25% increase in tariffs on Indian exports, particularly in response to India’s continued import of Russian oil. This fresh move led to a wave of profit-booking and weak investor sentiment, dragging down both Sensex and Nifty.
At 11:05 AM, the Sensex was down 510.52 points (0.63%) at 80,033.47, while the Nifty dropped 166.25 points (0.68%) to trade at 24,407.95. The broader market also reflected the pressure, with 1,152 shares advancing and 2,173 declining, showing widespread market weakness.
Tariff Shock: Trump’s Decision Weighs Heavily on Markets
One of the primary reasons behind today’s market fall was the announcement by former US President Donald Trump, doubling the tariff on Indian goods to 50%. The move has been seen as retaliation for India’s continued oil trade with Russia.
India sharply criticized the move, calling it “unfair, unjustified, and unreasonable.”
Export-driven sectors such as textiles, marine, and leather are likely to feel the heat of the tariff hike, raising concerns over earnings and outlook for companies within these industries.
Among the major losers in today’s trade were Adani Ports, Tata Motors, Kotak Mahindra Bank, Tata Steel, and NTPC, all reflecting the market’s nervousness.
Also Read: DLF Commits ₹10,000 Crore Capex to Fuel Rental Business Growth
Rising Crude Oil Prices Add to Pressure
Adding to the market jitters was a rise in global crude oil prices. Brent crude gained 1% to reach $67.56 per barrel, raising fears of a higher import bill and renewed inflationary pressure in India. Rising oil prices often lead to macroeconomic concerns, especially for a net oil importer like India, affecting market sentiment further.
Technical View: Caution Ahead
According to Anand James, Chief Market Strategist at Geojit Financial Services, the market is displaying signs of bearish momentum.
“The formation of lower highs indicates continued bearish dominance. Downside momentum could persist with targets around 24,080–23,560. However, a push above 24,590–24,670 would be needed for any confirmed recovery,” he said.
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