CHENNAI: Indian equity markets ended lower on Thursday, July 31, weighed down by a sudden tariff announcement by former US President Donald Trump. The BSE Sensex closed at 81,185.58, falling 296.28 points or 0.36%, while the NSE Nifty 50 settled at 24,768.35, down 86.70 points or 0.35%.
Markets opened sharply in the red after Trump declared a 25% tariff on Indian imports, citing India’s energy and defense ties with Russia. The move sparked heavy selling across export-oriented sectors including pharmaceuticals, textiles, and auto components. Stocks such as Dr. Reddy’s and Sun Pharma fell up to 3%, while smaller exporters like Avanti Feeds and Apex Frozen Foods dropped over 6%.
Within the first 15 minutes of trade, the Sensex lost as much as 786 points and the Nifty slipped over 212 points, leading to a market capitalisation erosion of nearly ₹5 lakh crore. However, equities rebounded from the day’s lows by midday as investors bought into domestic-facing sectors like FMCG, banks, and media. Stocks like HUL, ITC, and Jio Financial Services helped cushion losses.
Despite the recovery, markets turned weak again in late afternoon trade as concerns over the long-term impact of the tariffs resurfaced. The rupee also weakened to around ₹87.74 per US dollar, nearing record lows, adding further pressure to the sentiment.
Analysts warned that the tariffs could shave off 0.25 to 0.4 percentage points from India’s GDP growth in FY26 by disrupting manufacturing and export chains. Foreign portfolio investors continued to offload Indian equities, extending their selling streak to over ₹25,000 crore in recent sessions.
Though the market's ability to recover from steep losses reflected underlying resilience, near-term volatility is likely to persist. Traders and investors are now looking for clarity on whether the proposed tariffs will be negotiated or fully enforced starting August 1.