The bearish forces swing in full flow, bringing the forces down..
The Indian markets showed a mixed but strong performance on August 7, 2025, as traders struggled with new trade tensions but found support during the final trading hours. Sensex closed at 80,623, up marginally by 79 points (0.10%), recovering sharply from an intraday low of 79,811. Similarly, the Nifty50 ended slightly higher at 24,596, gaining 22 points (0.09%) after dropping to 24,344 during the day.
The recovery was largely driven by strong buying in IT and pharmaceutical sectors, with notable gains in stocks like Tech Mahindra, Eternal (Zomato), and HCL Technologies. Yet, sell pressure was witnessed in some of the heavyweight stocks like Adani Ports and Reliance. Sectorally, Nifty Pharma index gained 0.75%, Nifty IT gained 0.87%, and Media index almost 1%, while Realty and Oil & Gas insidious showed declines.
The GIFT Nifty futures, which mirror the mood in the early part of the day, also dipped marginally, declining 0.63% to a low of almost 24,696, showing that global investors were wary of taking a bet on the domestic market, which opens later in the day.
On the global side, ADRs registered a mixed response in the US markets. Infosys shares fell 0.8%, Wipro lost 1.68%, and Dr. Reddy's Laboratories dropped 2.5%. However, some money ADRs such as HDFC Bank and ICICI Bank held modest gains. Travel and IT-related ADRs demonstrated resilience with MakeMyTrip rising back to close 0.26% higher after a intra-day fall and Sify Technologies dramatically rallying more than 28%.
The US equity markets also experienced a mixed day. The Nasdaq Composite, which is tech-heavy, climbed 0.6%, supported by optimism that tariff carve-outs for imports of semiconductors may occur. The S&P 500 inched higher by 0.1%, while the Dow Jones Industrial Average declined 0.5%, reflecting concerns due to broader trade policy changes and mixed earnings from large-cap companies.
One of the major underlying factors that affected market sentiment was the weakening Indian Rupee. The USD-INR exchange rate remained around 87.6, indicating a weak rupee that puts additional burden on imports and foreign servicing of debt. The decline of the rupee can further aggravate inflation concerns, over and above the woes for equity markets.
Also Read- 7 August, 2025 : Indian Stock Market deals a Fightback to the Tariff-storm
Investor sentiment was volatile as US President Donald Trump's threat of another 25% tariff on Indian imports increased total tariffs to 50%, which came into effect on August 27. India has criticized the move as unfair and has vowed protectionist measures. Markets made a comeback late in the day despite the jitters prompted by tariffs, driven by hopes of continued trade talks and sector-specific resilience.
In brief, Indian markets tomorrow can open with caution on account of tariff worries and currency weakness but can get a boost from optimistic overseas signals in technology stocks and robust domestic segments such as IT and Pharma. Investors would keep a close eye on the GIFT Nifty futures for directional pointers, the attitude of international investors through ADRs, and the trend in the rupee while considering the changing trade tensions that characterize the macroeconomic environment. The interplay of mixed world markets, homegrown recovery efforts, and pressures from abroad will shape the short-term Indian market direction.
