The domestic equity benchmarks ended the week with major losses, weighed down by renewed global trade tensions after President Trump announced a doubling of U.S. tariffs on Indian goods, sparking concerns over a potential export impact. The Reserve Bank of India’s decision to keep interest rates unchanged, along with its neutral policy stance, failed to boost investor sentiment amid persistent foreign portfolio outflows. Additionally, weak Q1 earnings from several major companies further dampened market morale. The overall tone remained cautious. Notably, the broader market underperformed, adding to the week’s bearish undertone.
In the week ended on Friday, 08 August 2025, the S&P BSE Sensex declined 742.12 points or 0.92% to settle at 79,857.79. The Nifty 50 index slipped 202.05 points or 0.82% to settle at 24,363.30. The BSE Mid-Cap index fell 1.29% to close at 44,570.89. The BSE Small-Cap index dropped 1.86% to end at 51,596.97.
Weekly Index Movement:
Domestic benchmark indices kicked off the week on a positive note, snapping a two-day losing streak on Monday. The S&P BSE Sensex advanced 418.81 points or 0.52% to 81,018.72. The Nifty 50 index gained 157.40 points or 0.64% to 24,722.75.
Domestic equity benchmarks ended modestly lower on Tuesday. 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.
The domestic equity benchmarks ended lower on Wednesday, marking a second consecutive day of losses. The Nifty 50 index fell 75.35 points or 0.31% to 24,574.20. In two consecutive sessions, the Sensex declined 0.59% and the Nifty shed 0.60%.
The domestic equity benchmarks staged a late rebound on Thursday. The S&P BSE Sensex added 79.27 points or 0.10% to 80,623.26. The Nifty 50 index rose 21.95 points or 0.09% to 24,596.15.
The headline equity benchmarks ended with significant losses on Friday. The S&P BSE Sensex, tanked 765.47 points or 0.95% to 79,857.79. The Nifty 50 index declined 232.85 points or 0.95% to 24,363.30.
RBI Monetary Policy Meeting Outcome:
Banking stocks edged lower after the Reserve Bank of India’s Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.5% in its latest review, concluding on 6 August 2025.
The committee maintained its stance amid global uncertainties and a resilient domestic economy, choosing to allow more time for the transmission of its earlier rate cuts. The RBI noted that the global environment remains uncertain, with muted growth and uneven disinflation, although financial volatility has eased somewhat.
The central bank retained its real GDP growth forecast for FY26 at 6.5%, with quarterly projections of 6.5% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4. For Q1 FY27, growth is projected at 6.6%, with risks broadly balanced.
On inflation, the RBI lowered its CPI forecast for FY26 to 3.1%, down from the earlier 3.7%. Quarterly inflation is now seen at 2.1% in Q2, 3.1% in Q3, and 4.4% in Q4. CPI inflation for Q1 FY27 is projected at 4.9%. The central bank noted that average inflation this year is expected to remain well below the target, largely due to easing food prices, although inflation may edge above the 4% mark from Q4 onwards.
The RBI highlighted that the full impact of the 100 basis points of rate cuts since February 2025 is still unfolding. Given the current macroeconomic conditions and external risks, the MPC decided to maintain the existing rate and continue with a neutral stance. It also signaled continued data monitoring to guide future policy moves.
The minutes of the meeting will be released on August 20, while the next MPC meeting is scheduled from September 29 to October 1.
Trump Tariffs:
United States President Donald Trump announced an additional 25% tariff on Indian goods on August 6. This effectively doubles the total import duties to 50%. The decision responds to India’s ongoing purchase of Russian oil, which the U.S. believes undermines its sanctions. The new tariffs will come into effect on August 27. The move is expected to severely impact key Indian export sectors, including leather, chemicals, footwear, gems and jewellery, textiles, and shrimp.
"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.
Stocks in Spotlight:
Bharti Airtel declined 1.40%. The company has reported a 103.3% rise in consolidated net profit to Rs 5,948 crore in Q1 FY26 from Rs 2,925 crore in Q1 FY25. Total revenues increased by 28.5% YoY to Rs 49,463 crore in the April–June 2025 quarter. The growth was driven by strong momentum in both India and Africa.
Divis Laboratories dropped 7.05%. The pharma major’s consolidated net profit declined 17.67% to Rs 545 crore in Q1 FY26 as against Rs 662 crore recorded in Q4 FY25. Revenue from operations also declined 6.79% quarter on quarter (QoQ) to Rs 2,410 crore for the quarter ended 30 June 2025.
Britannia Industries fell 7.25%. The company’s consolidated net profit increased 2.98% to Rs 520.72 crore on 8.75% jump in revenue from operations to Rs 4,622.22 crore in Q1 FY26 over Q1 FY25.
Hero Motocorp jumped 6.61%. The company’s standalone net profit rose 0.3% to Rs 1,125.70 crore despite of 5.6% decline in revenue from operations to Rs 9,578.86 crore in Q1 FY26 over Q1 FY25.
Trent advanced 2.56%. The company reported a 9.45% increase in consolidated net profit to Rs 429.69 crore in Q1 FY26 as against Rs 392.57 crore posted in Q1 FY25. Revenue from operations jumped 18.98% YoY to Rs 4,883.48 crore in the quarter ended 30 June 2025.
Bharat Heavy Electricals (BHEL) slipped 3.84%. The company’s consolidated net loss widened to Rs 445.50 crore in Q1 FY26 compared with a net loss of Rs 211.40 crore in Q1 FY25. Revenue from operations saw a marginal year-on-year (YoY) increase of 0.03%, reaching Rs 5,486.91 crore in the quarter ended 30 June 2025.
State Bank of India (SBI) added 1.33%. The bank reported a consolidated net profit of Rs 19,160 crore for Q1 FY26, up 12.48% from Q1 FY25 and 2.78% higher sequentially. Net interest income came in at Rs 41,072 crore, marginally lower by 0.13% YoY and down 3.98% QoQ.
Life Insurance Corporation of India rallied 3.15%. The company reported 5.02% jump in standalone net profit to Rs 10,986.51 crore on 5.66% rise in total income to Rs 2,22,863.61 crore in Q1 FY26 over Q1 FY25.
Titan Company jumped 4.38%. The company reported 52.5% jump in consolidated net profit to Rs 1,091 crore on a 20.4% rise in operating revenue to Rs 14,673 crore in Q1 FY26 as compared with Q1 FY25.
Biocon fell 10.34%. The company reported a 95.2% decline in consolidated net profit to Rs 31.40 crore despite a 15.8% jump in net sales to Rs 3,910.10 crore in Q1 FY26 over Q1 FY25.
Kalyan Jewellers India dropped 9.46%. The company’s consolidated net profit surged 48.55% to Rs 264.08 crore in Q1 FY26, supported by a 31.48% increase in revenue from operations to Rs 7,268.5 crore compared to the same period last year.
Pidilite Industries jumped 7.80%. The company's consolidated net profit jumped 18.60% to Rs 672.41 crore on a 10.53% rise in revenue from operations to Rs 3,753.10 crore in Q1 FY26 over Q1 FY25. The company's board approved a bonus issue in the ratio of 1:1 and a special dividend of Rs 10 per share.
Global Markets:
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.
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.
Meanwhile, South Korea posted a record-high current account surplus in June on strong demand for technology exports, central bank data showed on Thursday.
The country's current account stood at a surplus of $14.27 billion, up from $10.14 billion in May. It was reportedly the biggest monthly surplus in the data series dating back to January 1980.
South Korea's trade deal with the U.S. will take a huge burden off monetary policymakers at their upcoming meeting later this month, the country's central bank governor reportedly said on Thursday at his first meeting with the newly appointed finance minister.
The Bank of Korea kept its benchmark interest rate unchanged at 2.50% last month, but a majority of board members signaled another rate cut in the next three months and warned of "significant" economic uncertainty from the U.S. tariffs. The central bank next meets on August 28.
Data released by the Labor Department showed that the US nonfarm payrolls rose by 73,000 in July 2025, well below expectations of 110,000. The revised figures for May and June showed that employment was cumulatively lower by 258,000 than previously reported, suggesting the labor market may be cooling more rapidly than initially anticipated.
U.S. services sector activity unexpectedly flatlined in July, data showed on Tuesday. The Institute for Supply Management (ISM) said on Tuesday its nonmanufacturing purchasing managers index (PMI) slipped to 50.1 last month from 50.8 in June. The data indicated that the employment had weakened further and input costs climbed by the most in nearly three years, underscoring the impact from President Donald Trump's tariff policy