Bull vs Bear: The Contest has been interesting as ever, with bears pulling the markets down towards the last week.
Indian equity markets saw an intriguing and eventful trading session on August 7, 2025, as they were guided by watchful sentiment due to geopolitical and economic factors. The primary benchmark indices pulled back due to apprehensions over fresh tariff levies and mixed sets of corporate earnings announcements.
The BSE Sensex ended in the green, gaining about 0.09%, with the index closing at 80,623.26 points. The Nifty 50 index also closed similarly with about 0.08% gains, at 24,596.15, just above the psychological levels of 24,500. The downward pressure was mainly due to new trade tensions as US President Donald Trump imposed higher tariffs on Indian imports, which caused concern regarding the economic outlook and flows of foreign investment. However, in last hour, the large caps, led by IT and Pharma, recovered to trade mostly flat.
The sell-off was present early in the mid-cap and small-cap categories too, with the Nifty Midcap 100 index gaining around 0.33% and the Nifty Smallcap 100 index gained 0.17%. All these actions indicated a broad-based market pullback-pushback, showing risk aversion among the investors earlier on, but later, pushed back to trade green.
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Sector-wise, almost every sector traded in the red initially, with the worst performers being pharmaceuticals, oil and gas, and metal. Auto stocks such as Tata Motors and commodities and industrial stocks a beating initially, exemplifying stalling sentiment across the board. Auto stocks performed green, such as Hero Moto that surged 4%, Bajaj Auto closed green by 0.61%. Other stocks dealt with losses, such as Adani Enterprises that dropped 2.19%, Prince Pipes fell 8.31%.
The Reserve Bank of India kept the repo rate unchanged at 5.5% and continued with a neutral stance on monetary policy yesterday, which did little to help equities. Investors also looked forward to quarterly results announcements by marquee names like Titan, Life Insurance Corporation (LIC), and Bharti Airtel, which were set to steer market direction.
Foreign Institutional Investors (FIIs) are guessed to remain net sellers for the consecutive session, while Domestic Institutional Investors (DIIs) continued to buy shares, extending their buying spree to 22 sessions. This divergence, combined with tariff fears and mixed earnings, contributed to the day’s cautious and somewhat thrilling market action.
Summing up, the Indian markets of August 7, 2025, reflected global uncertainties and domestic woes, with the leading indices falling under tariff-related concerns and muted corporate performance. Mid-cap and small-cap indices too reflected the risk-off mood, with the majority of the sectors closing lower. Despite this, selective stock-specific buying had some silver linings in an otherwise challenging trading session. Investors will probably be keeping a close eye on future earnings and geopolitical events before taking a fresh stance in the market.
