Sensex, Nifty Weak at Open; Tariff Overhang, IT and Smallcaps Fall | Aug 7, 2025
Sensex and Nifty open lower August 7, 2025, as Trump tariffs, FII selling, and IT, smallcap weaknesses weigh on markets. See key levels, trends, predictions.
Sensex, Nifty Open Weak; Trump Tariffs and IT, Smallcap Losses Weigh | August 7, 2025, 9:25 AM IST
Indian equities began Thursday on a negative note, as global trade tensions and sectoral weakness continued to pressure sentiment. Overnight, US President Donald Trump announced an additional 25% tariff on Indian exports, bringing the total to 50%, which hit markets amid an ongoing weak earnings season and persistent FII outflows.
Market Snapshot – 9:25 AM IST
| Index | LTP | Change | % Chg |
|---|---|---|---|
| SENSEX | 80,348.91 | -195.08 | -0.24% |
| NIFTY 50 | 24,513.50 | -60.70 | -0.25% |
| NIFTY BANK | 55,289.05 | -122.10 | -0.22% |
| NIFTY IT | 34,354.35 | -71.90 | -0.21% |
| India VIX | 11.90 | -0.06 | -0.50% |
| NIFTY Midcap 100 | 56,630.80 | -118.95 | -0.21% |
| NIFTY Smallcap 100 | 17,579.90 | -82.70 | -0.47% |
Market News, Trends, and Sentiment
- Tariff shock & global cues: Trump’s tariff hike triggered a risk-off open, weighing particularly on export-oriented sectors and sentiment across listed names. Asia-Pacific markets opened mixed, while US equities finished firm on earnings optimism, showing disconnect between local and global drivers.
- Broad-based sectoral decline: IT, banks, midcap, and smallcap indices all declined in early trade; sector rotation stays defensive as profit booking and macro caution persist.
- FII selling remains heavy: Foreign institutional investors have been net sellers this week, contributing to additional downward pressure.
- Volatility stable: India VIX cooled slightly, signaling no panic but warning that further shocks could spark bigger swings. Market is now watching Nifty key support at 24,500, with 24,400-24,450 as critical zones to watch for further selling.
What to Watch & Predictions
- Downside risks: Strong resistance seen near 24,600-24,650; immediate support at 24,500-24,450 (Nifty). If those levels break, a further slide toward 24,350 is possible.
- Sector focus: IT, smallcaps, and rate-sensitive sectors stay weakest amid policy, earnings, and FII headwinds; watch defensives like FMCG or pharma for any bid.
- Macro triggers: Reactions to Trump tariffs, further action on global trade, ongoing FII flows, and largecap earnings (including Trent, Bajaj Auto, BHEL) will shape post-open swings.
- Strategy: Caution is key on opening bounce—prefer quality largecaps and defensive groups; avoid chasing smallcap/IT until clearer signs of reversal and stabilization emerge.
Luwak Tech powers market participants with timely analytics, algo-driven trade signals, and actionable intelligence to navigate turbulence, manage sector risk, and exploit short-term dislocations across NSE and BSE.