Sensex Slips 585 Points, Nifty Settles Below 24600 Amid Broad-Based Selling, Pharma Bucks Trend

Equity benchmark indices extended losses for a second straight session on August 1, 2025, as investors digested a mixed set of corporate earnings, and the latest tariff measures by US President Donald Trump. After trading range-bound in early session, the benchmarks eventually gave up to the selling pressure, and closed in the red.

The Sensex fell 585. 67 points, or 0.72 per cent, to close at 80,599.91. Likewise, the Nifty 50 lost 203 points, or 0.82 per cent, to end at 24,565.35.

The sell-off was broad-based as the Nifty Midcap 100 tanked 1.33 per cent and Nifty Smallcap 100 declined 1.66 per cent. The Nifty 500, which represents more than 92 per cent of the total free-float market capitalisation of all the stocks listed on the National Stock Exchange (NSE), also ended 1.05 per cent lower. The Nifty Microcap 250, which tracks the performance of the top 250 most liquid and valuable companies beyond the Nifty 500 constituents, too, fell 1.59 per cent.

FMCG Bucks Trend

Barring FMCG, all sectoral indices closed in red. Nifty FMCG closed 0.69 per cent higher as investors shifted to defensives amid the tariff-led volatility. Attractive valuations, resilient demand, and the sector’s relative immunity to external trade disruptions supported FMCG stocks, said Vinod Nair, Head of Research, Geojit Investments.

Nifty Pharma fell 3.33 per cent, emerging as the top sectoral loser, after Trump sent letters to 17 global drugmakers urging them to lower drug prices in the US and align costs with what other countries pay for new medicines. This raised concerns of potential pricing pressures on the pharma companies.

Nifty Healthcare also fell 2.77 per cent, followed by Nifty Metal, Nifty IT, Nifty Realty, Nifty Oil & Gas, and Nifty Auto, all of which fell in the range 1-2 per cent each.

Sensex, Nifty 50: Top Gainers and Losers

Among Sensex's 30 stocks, Sun Pharma, Tata Steel, Maruti Suzuki India, Tata Motors, and Infosys were the biggest losers, falling between 2.5 per cent and 4.5 per cent. On the other hand, Trent, Asian Paints, Hindustan Unilever, ITC, Kotak Mahindra Bank, and Reliance Industries were the top gainers, helping the index cap losses.

From the Nifty 50 pack, Sun Pharma, Dr Reddy's Laboratories, Adani Enterprises, Cipla, Tata Steel, Infosys and Tata Motors were the top losers, while Trent, Eicher Motors, Asian Paints, Hindustan Unilever, Nestle India, ITC, and Hero MotoCorp were the top gainers.

Key Market Cues For Monday, August 4

Here are the key market cues that are likely to influence the action on the Dalal Street.

India-US Trade Deal

A day after announcing 25 per cent tariffs on Indian goods, plus a “penalty” for buying Russian oil and weapons, Trump chickend out. The tariffs, initially slated to take effect from August 1, have now been pushed to August 7. Trump said talks with India are still underway.

Notably, the proposed duties on India are steeper than those planned for other Asian economies including Indonesia, the Philippines, Vietnam, and Japan. Further announcements in this space will be closely watched by investors.

US PMI, Jobs Data for June 2025

Investors will be keeping a close eye on the latest ISM manufacturing PMI data, slated to be released later today, as it will provide fresh clues on the health of US manufacturing industry. Markets will also be watching to see if the investment commitments recently secured by Trump can help lift activity in the manufacturing sector.

The US will also be releasing unemployment data later today, which will provide insights into the strength of the labor market and could offer further cues on the Federal Reserve’s next steps on interest rates.

Q1 Results, August 2

As many as 55 companies listed on the Bombay Stock Exchange (BSE) are set to announce their quarterly results for the period ended June 30, 2025 (Q1 FY26).

Among some of the big names are Federal Bank, Finolex Industries, Balaji Amines, MedPlus Health Services, Utkarsh Small Finance Bank, and Stylam Industries. No BSE-listed companies are scheduled to report their earnings on August 3.

Further, investors will also be reacting to the results released post-market hours today.