CHENNAI: Indian equity markets opened sharply lower on Thursday, July 31, following the announcement of a 25 percent tariff on Indian exports by US President Donald Trump. The BSE Sensex fell 601.06 points or 0.74 percent to 80,880.80 as of 9:19 am, after opening at 80,695.50. The NSE Nifty 50 also declined significantly, shedding 175.25 points or 0.71 percent to 24,679.80, slipping below the key 24,700 mark in early trade.
The gap-down opening was largely anticipated after Trump's surprise tariff decision, which also included a warning of further penalties tied to India's continued oil trade with Russia. The announcement rattled investor sentiment and triggered a broad sell-off across sectors. Analysts noted that export-oriented industries such as textiles, pharmaceuticals, auto components, and gems and jewellery are likely to bear the brunt of the new trade barriers.
Within the first 15 minutes of trade, domestic markets lost over ₹5.5 lakh crore in market capitalisation. All 16 sectoral indices were trading in the red, with the small-cap and mid-cap segments each down by more than 1.25 percent. Among the major Nifty 50 laggards were Dr Reddy’s Laboratories, Reliance Industries, Bharti Airtel, Mahindra & Mahindra, and Titan Company. On the other hand, a few stocks such as Jio Financial, SBI Life, and Tata Steel managed to hold gains.
The Indian rupee also came under pressure, opening at around 87.69 against the US dollar—close to its all-time low—amid fears of a prolonged trade rift. Currency traders now expect the Reserve Bank of India to step in to prevent excessive volatility. Foreign institutional investors have already pulled out nearly $2 billion from Indian equities this month, including $425 million just two days earlier, exacerbating the rupee’s weakness.
Market experts believe the tariff move is part of a larger negotiation strategy, and many still expect a resolution to be worked out in view of the long-term strategic alignment between the US and India. However, the near-term market outlook remains cautious, with investors awaiting further clarity on trade developments and their possible impact on earnings.
Technical analysts see immediate support for the Nifty around 24,600–24,750, while resistance is expected near the 25,000–25,200 zone. The Sensex, similarly, may find support closer to the 80,000 mark. Broader sentiment remains fragile, and unless there is a swift diplomatic or policy response, markets may continue to trade with a negative bias in the short term.