Closing Bell: Sensex Down 296 Points, Nifty Below 24,800 Amid 25% US Tariffs on India

Indian stock market benchmarks, Nifty and Sensex, ended in red, halting gains from the previous two sessions on Thursday, July 31, as Investor sentiment ranged across the spectrum from optimism to fear. The drop came as a reaction to US President Donald Trump's announcement of a 25% tariff on Indian imports.

BSE Sensex closed at 81,185.58, down 296.28 points or 0.36 per cent, while the Nifty50 index ended at 24,768.35, down 86.70 points or 0.35 per cent. Markets ended in red, facing a volatile trading day on the monthly expiry.

Top Gainers And Losers:

HUL, Jio Finance, JSW Steel, Eternal, Kotak Mahindra Bank, ITC, and Power Grid are top Nifty gainers with HUL rising 3.55% in today's trading session.

While Adani Entertainment, Tata Steel, Sun Pharma, Dr Reddy, NTPC, Reliance, and Adani Ports were the top losers on the Nifty 50, with Adani Entertainment falling over 4%.

The Nifty Midcap index dropped nearly 1% for the day, mainly due to losses in Indus Towers and IPCA Labs. The Nifty Smallcap 250 also fell 1%, with Apar Industries and Aarti Industries leading the decline.

Among sector performers, FMCG gained 1.4%. However, sectors like IT, metals, oil & gas, PSU banks, pharma, real estate, and telecom saw declines ranging from 0.5% to 1.8%.

On the BSE, the MidCap index closed 0.7% lower, while the SmallCap index was down 0.85%. Market breadth remained negative, with 1602 shares advancing, 2415 shares declining, and 136 shares unchanged. However, benchmark indices slightly outperformed Broader Market Indices.

Why Did the Market Fall Today?

Indian Stock market ended in red, halting gains from the previous two sessions as a reaction to US President Donald Trump's announcement of a 25% tariff on Indian imports. Almost all sectors traded in the red, led by oil & gas, following Trump's signals of further penalties over India's energy ties with Russia. The Fed's decision to hold interest rates, which dimmed hopes of a policy easing in September, also pressured sentiment, according to tradingeconomics.com.

"Following a turbulent start driven by fresh tariff threats, the Indian market started on a pessimistic note. However, the domestic market attempted a strong recovery, but by the end of the day it closed with marginal losses, on a monthly expiry day," said Vinod Nair, Head of Research, Geojit Investments.

Market Outlook:

"Investors gravitated toward domestically oriented, non-discretionary players, especially FMCG, which offered attractive valuations, demand outlook and relative insulation from tariff risks.

In contrast, oil & gas stocks were the worst hit due to US warnings over Indian energy imports. Overall, the market reflected a cautious yet selective approach. Market continues to hold high hopes for a more favorable tariff outcome in the near-term," added Vinod Nair of Geojit Investments.

Rupee VS Dollar:

The Indian rupee ended the day 17 paise lower at 87.60 against the US dollar. In July 2025, the rupee fell by 2.15%, marking its third straight month of decline. This was also the rupee's worst monthly performance since September 2022.

"Rupee traded weak by 22 paise at 87.64, as a rise in the dollar index near 99.83 and the imposition of a 25% tariff on India by the U.S. added significant pressure. Sentiment was further dampened by weakness in the capital markets amid ongoing tariff-related concerns.

Going ahead, the rupee is expected to remain under pressure with a broader trading range seen between 87.25 and 88.00" said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

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