Stock market selloff: Rs 5,46,000 crore gone! Sensex, Nifty take hit on Trump tariff
The BSE Sensex fell nearly 800 points (787 pts) and was later trading 571 points, or 0.70 per cent, at 80,910.24. Nifty was down 186 points, or 0.75 per cent, at 24,669.85.
- Jul 31, 2025,
- Updated Jul 31, 2025 9:33 AM IST
Benchmark stock indices the BSE Sensex and the NSE Nifty witnessed a gap-down start on Monday after the Trump administration imposed 25 per cent tariff on Indian exports to the US. Investors were uncertain as the US President Donald Trump also proposed an undisclosed penalty on India for buying Russian oil and arms. Major selling was seen in Apple distributor Redington Ltd and shrimp export Avanti Feeds.
Investor wealth as suggested by the BSE market capitalisation fell Rs 5.46 lakh crore to Rs 4,47,86,457 crore today compared with Rs 4,53,32,906 crore in the previous session. The BSE Sensex fell nearly 800 points (787 pts) and was later trading 571 points, or 0.70 per cent, at 80,910.24. Nifty was down 186 points, or 0.75 per cent, at 24,669.85.
"The 25 per cent tariff on India plus an unspecified penalty for energy and defence-related purchases from Russia is very bad news for Indian exports and thereby on the growth prospects of the Indian economy in the short run. Since trade negotiations with India are continuing, perhaps, the 25 per cent tariff may come down eventually. But certainly, there is a short-term hit to Indian exports and GDP growth. This short-term hit will reflect in the stock market, too, in the short-term," said VK Vijayakumar, Chief Investment Strategist, Geojit Investment.
Vijayakumar said Nifty is unlikely to go below the support level of 24500. Investors can buy the dip focusing on domestic consumption themes, particularly segments like leading private sector banking names, telecom, capital goods, cement, hotels and select autos which have done well in Q1, he said.
Avanti Feeds Ltd fell 5.41 per cent to Rs 653.40. Redington Ltd was down 3.82 per cent at Rs 255.25. Auto ancillary stocks such as Bharat Forge, Motherson Sumi and Balkrishna Industries fell 2-3 per cent.
Among Sensex stocks, Reliance Industries was the worst hit. The oil-to-telecom major fell 1.43 per cent to Rs 1,389.75. Bharti Airtel, Tata Motors, Titan Company and SBI declined up to 1.3 per cent.
Nomura said the higher tariffs should push the Indian team to accelerate its trade negotiations with the US and minimise the economic cost.
"The government may stick firm on its red-lines on opening up agriculture (cereals) and dairy products given their domestic political spillovers, though some compromise is feasible in other areas such as autos. Over the medium-term, we expect the government to accelerate its efforts to diversify its export markets. India recently signed a free trade agreement with the UK, and it is already actively negotiating trade deals with the EU, New Zealand, Chile, Peru, among others," it said.
Benchmark stock indices the BSE Sensex and the NSE Nifty witnessed a gap-down start on Monday after the Trump administration imposed 25 per cent tariff on Indian exports to the US. Investors were uncertain as the US President Donald Trump also proposed an undisclosed penalty on India for buying Russian oil and arms. Major selling was seen in Apple distributor Redington Ltd and shrimp export Avanti Feeds.
Investor wealth as suggested by the BSE market capitalisation fell Rs 5.46 lakh crore to Rs 4,47,86,457 crore today compared with Rs 4,53,32,906 crore in the previous session. The BSE Sensex fell nearly 800 points (787 pts) and was later trading 571 points, or 0.70 per cent, at 80,910.24. Nifty was down 186 points, or 0.75 per cent, at 24,669.85.
"The 25 per cent tariff on India plus an unspecified penalty for energy and defence-related purchases from Russia is very bad news for Indian exports and thereby on the growth prospects of the Indian economy in the short run. Since trade negotiations with India are continuing, perhaps, the 25 per cent tariff may come down eventually. But certainly, there is a short-term hit to Indian exports and GDP growth. This short-term hit will reflect in the stock market, too, in the short-term," said VK Vijayakumar, Chief Investment Strategist, Geojit Investment.
Vijayakumar said Nifty is unlikely to go below the support level of 24500. Investors can buy the dip focusing on domestic consumption themes, particularly segments like leading private sector banking names, telecom, capital goods, cement, hotels and select autos which have done well in Q1, he said.
Avanti Feeds Ltd fell 5.41 per cent to Rs 653.40. Redington Ltd was down 3.82 per cent at Rs 255.25. Auto ancillary stocks such as Bharat Forge, Motherson Sumi and Balkrishna Industries fell 2-3 per cent.
Among Sensex stocks, Reliance Industries was the worst hit. The oil-to-telecom major fell 1.43 per cent to Rs 1,389.75. Bharti Airtel, Tata Motors, Titan Company and SBI declined up to 1.3 per cent.
Nomura said the higher tariffs should push the Indian team to accelerate its trade negotiations with the US and minimise the economic cost.
"The government may stick firm on its red-lines on opening up agriculture (cereals) and dairy products given their domestic political spillovers, though some compromise is feasible in other areas such as autos. Over the medium-term, we expect the government to accelerate its efforts to diversify its export markets. India recently signed a free trade agreement with the UK, and it is already actively negotiating trade deals with the EU, New Zealand, Chile, Peru, among others," it said.