Market mood remained cautious, as investors closely tracked the ongoing earnings season and awaited further developments on the trade front. Domestic economic data took a back seat, with geopolitical tensions dominating investor focus.

In the week ended on Friday, 1 August 2025, the S&P BSE Sensex declined 863.18 points or 1.06% to settle at 80,599.91. The Nifty 50 index fell 271.65 points or 1.09% to settle at 24,565.35. The BSE Mid-Cap index dropped 1.79% to close at 45,155.79. The BSE Small-Cap index tumbled 2.47% to end at 52,575.33.

Weekly Index Movement:

Key equity benchmarks ended sharply lower on Monday, marking their third straight day of losses as investor sentiment remained fragile amid uncertainty over the US-India trade deal. The S&P BSE Sensex slipped 572.07 points or 0.70% to 80,891.02. The Nifty 50 index declined 156.10 points or 0.63% to 24,680.90. In three consecutive trading sessions, the Sensex declined 2.21% while the Nifty fell 2.13%.

The headline equity indices snapped a three-day losing streak to end higher on Tuesday, supported by value buying in blue-chip stocks. The S&P BSE Sensex advanced 446.93 points or 0.55% to 81,337.95. The Nifty 50 index gained 140.20 points or 0.57% to 24,821.10. This rally comes after three straight sessions of declines, during which the Sensex had dropped 2.21% and the Nifty had slipped 2.13%.

The headline equity benchmarks closed with modest gains on Wednesday, aided by strong Q1 earnings from Larsen & Toubro (L&T). The S&P BSE Sensex advanced 143.91 points or 0.18% to 81,481.86. The Nifty 50 index added 33.95 points or 0.14% to 24,855.05.

The headline equity indices ended slightly lower on Thursday, snapping a two-day winning run, as markets reacted sharply to an unexpected tariff announcement from the United States and volatility from the monthly derivatives expiry. The S&P BSE Sensex declined 296.28 points or 0.36% to 81,185.58. The Nifty 50 index lost 86.70 points or 0.35% to 24,768.35.

The headline equity benchmarks ended with significant losses Friday, as investors turned cautious following the U.S. imposition of steep tariffs on multiple trade partners and the reaffirmation of a 25% import duty on Indian goods. The barometer index, the S&P BSE Sensex declined 585.67 points or 0.72% to 80,599.91. The Nifty 50 index lost 203 points or 0.82% to 24,565.35.Over the past two trading session the Nifty and the Sensex declined 1.17% and 1.08%, respectively.

Economy:

The International Monetary Fund (IMF) has upgraded India's economic growth estimate to 6.4% in both 2025-26 and 2026-27 as compared to what it had predicted in April. The growth upgrade, of 0.2 percentage points and 0.1 percentage points, respectively, is in line with the upgrades for global growth. The upward revision is primarily due to the suspension of higher tariffs, strong consumption growth, and a steady push for public investment. Inflation projections are also revised down to 3.7% in 2025 and 4% in 2026, thanks to easing food prices.

India's manufacturing sector saw its strongest performance in four months in July, according to the HSBC India Manufacturing Purchasing Managers’ Index (PMI). The index rose from 58.4 in June to 59.1 in July, indicating a solid improvement in business conditions. A score above 50 signals growth, while below 50 indicates contraction.

The rise was mainly driven by a sharp increase in new orders, as companies benefited from strong demand and effective marketing efforts. In fact, sales grew at their fastest pace in nearly five years, highlighting growing confidence in the manufacturing sector.

Monthly Auto Sales:

Tata Motors declined 2.17% after the company’s total sales dropped 3.98% to 69,131 units in July 2025 compared with 71,996 units in July 2024.

Mahindra & Mahindra (M&M) dropped 2.66%. The company said that its overall auto sales grew by 25.95% to 83,691 vehicles sold in July 2025 as against 66,444 vehicles sold in July 2024.

Bajaj Auto fell 0.29%. The company has reported 3% rise in total auto sales for July 2025, selling 3.66 lakh units as against 3.54 lakh units sold in July 2024.

SML Isuzu declined 9.2%. The company said that it has sold 1,427 units in July 2025, registering a growth of 18.6% from 1,203 units sold in the same period last year.

Ashok Leyland dropped 1.92%. The company reported an 8% rise in total commercial vehicle sales to 15,064 units in July 2025 from 13,928 units sold in July 2024.

TVS Motor Company advanced 2.52%. The company has registered sales of 456,350 units in July 2025, which is higher by 29% as comparesd with the 354,140 units sold in July 2024.

Maruti Suzuki India shed 0.81%. The company reported total sales of 180,526 units in July 2025, marking a 3.13% increase compared to 175,041 units sold in the same month last year.

Stocks in Spotlight:

Kotak Mahindra Bank tumbled 6.07%. The bank reported 7% YoY drop in standalone net profit to Rs 3,282 crore in Q1 FY26. However, total income rose 7.91% YoY to Rs 16,916.52 crore in the quarter ended 30 June 2025.

Eicher Motors added 1.78%. The company’s consolidated net profit jumped 9.42% to Rs 1,205.22 crore in Q1 FY26 as against Rs 1,101.4 crore posted in Q1 FY25. Total revenue from operations rose 14.76% year on year to Rs 5,041.84 crore in the quarter ended 30 June 2025.

Meanwhile, the company’s unlisted subsidiary, VE Commercial Vehicles (VECV), reported a 7.4% year-on-year jumped in commercial vehicle (CV) sales to 7,115 units in July 2025.

Laurus Labs surged 1.62%. The company's consolidated net profit zoomed 1,154% to Rs 163 crore, driven by a 31% rise in net sales to Rs 1,570 crore compared to Q1 June 2024. Meanwhile, the Government of Andhra Pradesh has allotted 531.77 acres of land in IP Rambilli Phase-II, Anakapalli District, to the company for the establishment of Laurus Pharma Zone (LPZ), where it plans to set up manufacturing units for pharmaceutical products. Laurus Labs has earmarked an investment of Rs 5,630 crore for this project, which is expected to generate employment for 6,350 people in three phases over eight years.

Indusind Bank rallied 5.1%. The bank reported a 68.21% decline in standalone net profit to Rs 684.25 crore on 3.79% fall in total income to Rs 14,420.12 crore in Q1 FY26 over Q1 FY25. Net interest income (NII) tumbled 17.53% to Rs 4,460 in Q1 FY26 compared with Rs 5,408 crore posted in same quarter last year. Net interest margin (NIM) stood at Rs 3.46% in Q1 FY26 as against 4.25% in Q1 FY25.

Larsen & Toubro (L&T) jumped 4.25%. The company reported 30% jump in consolidated net profit to Rs 3,617.19 crore on a 16% rise in revenue to Rs 63,678.92 crore in Q1 FY26 as compared with Q1 FY25. The consolidated order book of the group as on 30 June 2025 was at Rs 612,761 crore, a growth of 6% over March 2025. The share of international orders is 46%.

Asian Paints rallied 4.02%. The company’s consolidated net profit jumped 58.9% to Rs 1,099.77 crore on 6.93% increase in revenue from operations to Rs 8,938.55 crore in Q1 FY26 over Q4 FY25.

Global Markets:

Annual euro zone inflation came in at 2% in July, unchanged from June, core inflation, which strips out more volatile food, energy, alcohol and tobacco prices, came in at 2.3% in July, the same level as during the previous two months, Friday’s data showed.

France's harmonised inflation rate, adjusted for comparison with other euro zone countries, was +0.9% year-on-year in July.

The Bank of Japan (BoJ) has decided to maintain its benchmark interest rate at 0.5% in July.

China's official NBS Manufacturing PMI dropped to 49.3 in July 2025 from June’s three-month high of 49.7, marking the fourth consecutive month of contraction in factory activity. It was the steepest decline since January, as output growth slowed, while both new orders and foreign sales saw their sharpest drops in three months.

Data from the American Petroleum Institute, released on Tuesday evening, showed U.S. oil inventories grew about 1.5 million barrels (mb) in the week to July 25.

The Federal Reserve's rate-setting committee voted 9-2 on Wednesday to hold interest rates steady for the fifth consecutive meeting, with two Fed governors dissenting for the first time in more than three decades.