Sensex Drops Over 300 Points, Nifty Ends Below 24,650 Amid Tariff Concerns and FII Selling

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Indian stock markets closed lower on Monday as investor sentiment weakened due to renewed global tensions and foreign institutional investor (FII) outflows. The BSE Sensex fell by 308 points or 0.38 percent, settling at 80,710.25, while the NSE Nifty 50 declined 73 points or 0.30 percent to end at 24,649.55.

Market participants cited concerns over potential trade disruptions after former U.S. President Donald Trump reiterated his threat to impose 25 percent tariffs on Indian goods. The warning comes in response to India’s continued import of discounted crude oil from Russia. The geopolitical friction weighed heavily on investor mood throughout the session.

Adding to the cautious tone, traders remained on edge ahead of the Reserve Bank of India’s monetary policy announcement, expected on August 6. The uncertainty over interest rate guidance prompted profit booking in several sectors.

Among sectoral indices, oil and gas, banking, IT, FMCG, and pharma stocks recorded losses ranging from 0.5 to 0.8 percent. Major laggards on the Nifty included Adani Ports, Reliance Industries, Infosys, and ICICI Bank. On the other hand, IndusInd Bank surged nearly 4.7 percent following the appointment of Rajiv Anand as the new CEO. Other gainers included Titan, SBI Life, Maruti Suzuki, and Trent.

Market analysts noted that key resistance for the Nifty stands around the 24,850 to 24,950 level, with immediate support between 24,550 and 24,500. A break below the support range may trigger further downside pressure.

Corporate earnings also influenced market sentiment. Nifty 50 companies posted an average earnings growth of just 7.5 percent for the June quarter, marking the fifth consecutive quarter of modest performance. While banking and IT companies showed margin weakness, sectors like auto and cement offered some positive momentum.

Despite near-term caution, global investment firms maintain a moderately bullish outlook. Morgan Stanley recently projected the Sensex could reach 89,000 by June 2026, citing potential for long-term market re-rating.