Domestic equity benchmarks ended modestly lower on Monday, with the Nifty 50 settling just below the 24,650 mark. Energy, FMCG, and pharma stocks led the decline, dragging the index down as sentiment soured in the face of fresh geopolitical jitters.
The market mood deteriorated after U.S. President Donald Trump renewed his threat of imposing steep tariffs on India over its continued purchase of Russian oil. The sharp rhetoric revived concerns around global trade tensions, just as investors were already navigating through mixed Q1 earnings and persistent foreign portfolio outflows.
The S&P BSE Sensex dropped 308.47 points or 0.38% to 80,710.25. The Nifty 50 index declined 73.20 points or 0.30% to 24,649.55.
Reliance Industries (down 1.40%), ICICI Bank (down 1.19%) and HDFC Bank (down 0.79%) were major drags.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.14% and the S&P BSE Small-Cap index shed 0.27%.
The market breadth was negative. On the BSE, 1743 shares rose and 2299 shares fell. A total of 155 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 2.13% to 11.71.
All eyes are now on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, which began on 4 August 2025. The committee will announce its policy decision on 6 August. In May, the RBI surprised markets by cutting the repo rate by 50 basis points to 5.50%, while shifting its stance from accommodative to neutral. That brought total rate cuts since February to 100 basis points, pushing borrowing costs to their lowest since August 2022.
Trump Tariffs:
U.S. President Donald Trump has announced his plans to significantly raise tariffs on Indian exports to the country.
"India is not only buying massive amounts of Russian oil, but they are then, for much of the oil purchased, selling it on the open market for big profits," Trump reportedly wrote on a social media platform.
India said it was being 'targeted’ by the U.S. and the European Union over its imports of Russian oil after U.S. President Donald Trump, in an overnight social media post, threatened New Delhi with much steeper tariffs.
India began importing oil from Russia only after traditional supplies were diverted to Europe following the outbreak of the Russia-Ukraine war in 2022, the Indian foreign ministry reportedly said in a statement. It added that the very nations criticizing India, namely the EU and the U.S., were themselves engaging in trade with Russia.
The EU’s bilateral trade with Russia stood at 67.5 billion euros ($78.1 billion) in 2024, while its services trade in 2023 was at 17.2 billion euros, according to European Commission data. Citing that data, India said the bloc’s trade was “significantly more” than India’s total trade with Russia.
Economy:
The seasonally adjusted HSBC India Services PMI Business Activity Index edged up to 60.5 in July 2025 from 60.4 in June, indicating a sustained expansion in the country’s services sector.
Indian service providers reported a notable improvement in international demand, securing new business from Asia, Canada, Europe, the UAE, and the US. The pace of expansion in external sales was sharp, marking the second-fastest growth in a year, trailing only May’s performance.
The HSBC India Composite PMI Output Index was up fractionally from 61.0 in June to 61.1 in July, indicating a sharp rate of expansion that was the quickest since April 2024.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.27% to 6.330 from the previous close of 6.313.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.7300 compared with its close of 87.6600 during the previous trading session.
MCX Gold futures for 03 October 2025 settlement declined 0.57% to Rs 1,00,623.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.19% to 98.77.
The United States 10-year bond yield added 0.10% to 4.214.
In the commodities market, Brent crude for Oct 2025 settlement lost 65 cents or 0.95% to $68.11 a barrel.
Global Markets:
European indices traded higher on Tuesday as investors absorbed a fresh wave of corporate earnings ahead of the release of final regional activity data.
Asian shares ended higher, marking a second straight day of gains, as investor optimism grew that the Federal Reserve will take steps to support the world’s largest economy.
A few Bank of Japan board members said the central bank would consider resuming interest rate increases if trade friction de-escalates, minutes of its June policy meeting reportedly showed on Tuesday.
At the June 16-17 meeting, the BOJ kept interest rates steady at 0.5% and decided to decelerate the pace of its balance sheet drawdown next year, signaling its preference to move cautiously in removing remnants of its massive stimulus.
Meanwhile, South Korea's consumer prices rose 2.1% in July from a year earlier, slightly slower than the rise of 2.2% in June, government data showed on Tuesday.
On Wall Street, all three major averages soared into the green on Monday, with the Dow Jones Industrial Average recouping its losses from Friday’s session.
The blue-chip index climbed 585.06 points, or 1.34%, to finish the day at 44,173.64. Additionally, the broad market S&P 500 and the tech-heavy Nasdaq Composite rocketed higher by 1.47% and 1.95%, ending at 6,329.94 and 21,053.58, respectively.
New Listing:
Shares of Aditya Infotech were at Rs 1084.10 on the BSE, representing a premium of 60.61% compared with the issue price of Rs 675.
The scrip was listed at Rs 1,018, exhibiting a premium of 50.81% to the issue price. The stock has hit a high of Rs 1,104.20 and a low of Rs 1,014.65. On the BSE, 19.05 lakh shares of the company were traded in the counter.
Shares of Laxmi India Finance were at Rs 134 on the BSE, representing a discount of 15.19% compared with the issue price of Rs 158.
The scrip was listed at Rs 136, exhibiting a discount of 13.92% to the issue price. The stock has hit a high of Rs 146.70 and a low of Rs 133. On the BSE, 7.68 lakh shares of the company were traded in the counter.
Stocks in Spotlight:
Sanofi Consumer Healthcare India surged 10.88% after the company reported a 28% year-on-year rise in revenue to Rs 220.9 crore in Q2 2025, powered by export operations and successful product launches. On a sequential basis, the company’s revenue rose 27.5% from Rs 172.6 crore in Q1 2025. Profit after tax (PAT) for the quarter stood at Rs 60.7 crore, marking a 21% increase over Q1FY25 and a 109% surge from Rs 29 crore in Q2 2024. Profit before tax (PBT) came in at Rs 78.9 crore, up 102.83% YoY and 18.11% QoQ.
Triveni Turbine slumped 9.91% after the company posted a 19.9% year-on-year drop in consolidated profit after tax (PAT), which came in at Rs 64.4 crore in Q1 FY26, down from Rs 80.4 crore in the same quarter last year. Revenue from operations fell nearly 20% to Rs 371.3 crore from Rs 463.3 crore in Q1 FY25.
BLS International Services rallied 4.29% after the company’s consolidated net profit jumped 49.75% to Rs 170.99 crore on 44.23% increase in revenue from operations to Rs 710.56 crore in Q1 FY26 over Q1 FY25. The company said that growth was led by the existing business as well as due to consolidation of acquired businesses viz iDATA, Citizenship Invest and Aadifidelis Solutions during FY25.
Nimbus Projects hit an upper limit of 5% after the company announced a Rs 1,100 crore investment to revive and develop a premium residential project in Noida.
Godfrey Phillips India soared 10% after the company’s consolidated net profit climbed 55.89% to Rs 356.31 crore in Q1 FY26, compared with Rs 228.56 crore in Q1 FY25. Total revenue from operations (excluding excise duty) increased 36.54% year-on-year to Rs 1,486.2 crore in Q1 FY26.
Angel One shed 0.91%. The broker’s client base jumped 28.18% to 33.06 million in July 2025, compared with 25.79 million in the same month last year.
Aurobindo Pharma fell 1.04% after the company’s consolidated net profit tumbled 10.3% to Rs 824.75 crore despite of 4.5% increase in revenue from operations to Rs 7791.77 crore in Q1 FY26 over Q1 FY25.
Azad Engineering jumped 4.03% after the company’s consolidated net profit surged 73.59% to Rs 29.72 crore on 39.30% increase in revenue from operations to Rs 137.09 crore in Q1 FY26 over Q1 FY25.
GPT Infraprojects jumped 2.63% after the company’s consolidated net profit surged 39.84% to Rs 23.48 crore in Q1 FY26 as against Rs 23.48 crore posted in Q1 FY25. Revenue from operations jumped 29.33% YoY to Rs 312.63 crore in the quarter ended 30 June 2025.
The Anup Engineering declined 1.34% after the company’s consolidated net profit tanked 16.71% to Rs 26.26 crore in Q1 FY26 as against Rs 31.53 crore in Q4 FY25. Revenue from operations declined 20.96% to Rs 175.23 crore in Q1 FY26 over Q4 FY25.
Delta Corp dropped 2.39%. The company’s consolidated net profit jumped 35.89% to Rs 29.46 crore on 3.5% increase in revenue from operations to Rs 184.17 crore in Q1 FY26 over Q1 FY25.
Alembic Pharmaceuticals declined 2.30%. The company’s consolidated net profit jumped 14.18% to Rs 156.63 crore in Q1 FY26, compared with Rs 134.54 crore in Q1 FY25. Revenue from operations grew 9.54% year on year (YoY) to Rs 1,710.72 crore in the quarter ended 30 June 2025.
DLF fell 1.63%. The company reported an 18.13% rise in consolidated net profit to Rs 762.67 crore in Q1 FY26, compared with Rs 645.61 crore posted in Q1 FY25. Revenue from operations surged 99.41% year-on-year (YoY) to Rs 2,716.70 crore in the quarter ended 30 June 2025.
IPO Update:
The initial public offer (IPO) of Highway Infrastructure received bids for 42,47,87,099 shares as against 1,60,43,046 shares on offer, according to stock exchange data at 16:36 IST on Tuesday (5 August 2025). The issue was subscribed 26.48 times.