Markets closed marginally lower on Thursday following an extremely volatile trading session triggered by U.S. President Donald Trump’s announcement of a 25 per cent tariff on India, though benchmark indices recovered sharply from day’s lows to limit losses on the monthly expiry day.
The Sensex ended 296.28 points or 0.36 per cent lower at 81,185.58, while the Nifty 50 dropped 86.70 points or 0.35 per cent to close at 24,768.35. Despite the negative close, both indices demonstrated remarkable resilience after opening with significant gaps down – the Sensex opened at 80,695.50 against previous close of 81,481.86, while Nifty opened at 24,642.25 compared to previous close of 24,855.05.
“Markets witnessed volatile swings on the monthly expiry day and ended marginally lower amid mixed cues. The surprise tariff announcement by the US President on India initially triggered a knee-jerk reaction; however, a gradual recovery in heavyweight stocks across sectors helped the index briefly turn positive,” said Ajit Mishra, SVP Research, Religare Broking Ltd.
FMCG leads gains
The FMCG sector emerged as the clear outperformer, with the Nifty FMCG index gaining over 1 per cent as investors sought refuge in defensive, domestically-oriented stocks. Hindustan Unilever led the gainers on Nifty 50, surging 3.55 per cent to ₹2,524, followed by Reliance subsidiary Jio Financial Services which gained 2.72 per cent to ₹329. JSW Steel advanced 1.93 per cent to ₹1,057.90, while Kotak Mahindra Bank rose 1.04 per cent to ₹1,980.
On the losing side, Adani Enterprises suffered the steepest decline, falling 4.06 per cent to ₹2,430. Tata Steel dropped 2.52 per cent to ₹157.30, while pharmaceutical majors Sun Pharma and Dr Reddy’s declined 1.95 per cent and 1.93 per cent respectively to ₹1,700 and ₹1,267.10. NTPC rounded off the top losers, falling 1.51 per cent to ₹333.70.
“Following a turbulent start driven by fresh tariff threats, the Indian market started on a pessimistic note. However, domestic market attempted a strong recovery but by the end of the day it closed with marginal losses,” noted Vinod Nair, Head of Research, Geojit Investments Limited. “Investors gravitated toward domestically oriented, non-discretionary players, especially FMCG, which offered attractive valuations, demand outlook and relative insulation from tariff risks.”
The broader market breadth remained weak with 2,502 stocks declining against 1,525 advances on the BSE. However, 131 stocks hit 52-week highs compared to 91 touching 52-week lows, indicating underlying strength despite the day’s volatility. Six stocks hit lower circuit while none touched upper circuit.
Broader market weak
Sectoral performance was broadly negative except for FMCG and media. Banking indices showed resilience with Bank Nifty recovering nearly 413 points during the session, though it still closed 0.34 per cent lower at 55,961.95.
The rupee bore additional pressure from the tariff announcement, weakening 22 paise to 87.64 against the dollar. “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 per cent tariff on India by the U.S. added significant pressure,” said Jateen Trivedi, VP Research Analyst, LKP Securities.
Gold trades volatile amid hawkish Fed signals
Gold prices remained volatile, trading between ₹99,250-98,750 as hawkish Federal Reserve stance kept precious metals under pressure.
“From the day lowest point market rallied over 300 points. However, it failed to close above 24900/81600 levels. Nevertheless, on intraday charts it has formed higher bottom formation which is largely positive,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Looking ahead, analysts expect continued consolidation with the Nifty likely to trade in the 24,600-25,000 range as markets await clarity on the U.S.-India tariff situation and the upcoming RBI monetary policy decision.
Published on July 31, 2025