Nifty Slips Below 24,650 Mark; Market Reacts to Trump Tariff Threats and RBI MPC Meet
The Indian stock market is trading in negative territory on Tuesday, August 5, 2025, as investor sentiment turned cautious amid Donald Trump’s renewed tariff threats and the ongoing RBI Monetary Policy Committee (MPC) meeting. Both Sensex and Nifty 50 witnessed early declines, with Nifty slipping below the 24,650 level, and Sensex falling over 150 points.
Key Highlights: Stock Market Today
- Nifty 50 trades near 24,640, down by 40+ points
- Sensex drops over 150 points in early trade
- IndusInd Bank falls 6% on earnings reaction
- Rupee hits 6-month low
- Weekly expiry of Sensex contracts for August series
- Earnings reaction in stocks: Aurobindo, SPARC, DLF, Godfrey Phillips
- Eyes on Day 2 of RBI MPC meet and Bharti Airtel, Adani Ports results
Tariff Tensions Mount as Trump Escalates Trade Threats
Former U.S. President Donald Trump’s statement on extending tariffs on Indian goods has created jitters in global equity markets. His warning of imposing a new round of tariffs if re-elected in 2025 has added uncertainty, affecting Indian export-linked sectors and dragging market indices.
How Tariff Threats Impact Indian Markets
- Weaken investor confidence in international trade exposure
- Negative sentiment around automobile, IT, and pharma exports
- Possibility of capital outflows from foreign institutional investors (FIIs)
Sensex and Nifty Market Performance
The BSE Sensex opened lower and slipped more than 150 points, hovering around 81,850 levels. The Nifty 50, on the other hand, fell nearly 45 points, currently trading near 24,640, breaking the key psychological support of 24,700.
Nifty Key Support and Resistance Zones
- Support: 24,600 – 24,550 zone
- Resistance: 24,750 – 24,800 zone remains critical for bullish reversal
IndusInd Bank Crashes 6% on Disappointing Earnings
Shares of IndusInd Bank plunged over 6% after the company reported lower-than-expected Q1 FY26 earnings, with declining NIMs (Net Interest Margins) and higher provisioning. This weighed heavily on the Bank Nifty, pulling down other private banks as well.
Banking Sector Update
- IndusInd Bank down 6%
- HDFC Bank, ICICI Bank also trade in red
- Bank Nifty index under pressure due to earnings
Indian Rupee Slips to 6-Month Low
Adding to the woes, the Indian Rupee weakened further, hitting its lowest level in six months against the U.S. Dollar. The currency depreciation comes amid FII outflows, rising U.S. bond yields, and Trump’s global trade policy risks.
Currency Market Highlights
- Rupee at ₹84.95/USD
- FII net sellers in early trade
- Increased dollar demand from importers
Day 2 of RBI Monetary Policy Committee Meeting
Today marks the second day of the RBI MPC’s three-day meet, where interest rate decisions and inflation commentary are in focus. Analysts expect the RBI to maintain repo rate at 6.50%, but the tone on inflation and liquidity will be closely watched.
RBI Policy Watch: What to Expect
- No change expected in repo rate
- Commentary on inflation, especially food prices
- Update on liquidity normalization measures
Earnings Reactions Drive Stock-Specific Movements
Several major and midcap stocks are reacting sharply to their Q1 FY26 results, both positively and negatively. The market is particularly tracking pharma, real estate, and paint sectors today.
Top Stocks Reacting to Earnings:
- Aurobindo Pharma: Trades flat after muted growth
- SPARC: Slight gain on operational efficiency
- DLF: Gains 2% after strong real estate bookings
- Godfrey Phillips: Trades in green post profit beat
- Delta Corp: Volatile on mixed performance
Nifty Earnings Today: Bharti Airtel, Adani Ports in Focus
The earnings spotlight today is on large-cap names such as Bharti Airtel and Adani Ports, along with several broader market players. Their results are expected to influence telecom, logistics, and utility sectors.
Earnings Calendar – August 5, 2025
- Bharti Airtel
- Adani Ports
- Berger Paints
- Lupin
- Exide Industries
- Gujarat Gas
- Torrent Power
- MTAR Technologies
- NCC Ltd
Technical Outlook: What Nifty Levels to Watch Now?
Despite the current dip, analysts suggest the Nifty 50 continues to show resilience. The index has respected the 24,600–24,550 zone as immediate support and may see some bounce-back if 24,750–24,800 resistance is taken out.
Intraday Technical View:
- MACD shows weak momentum
- RSI near 42 indicates mild oversold conditions
- A move above 24,800 may lead to recovery toward 24,900+
Broader Market Update: Mixed Sentiment Prevails
The broader market showed mixed cues, with midcaps and smallcaps outperforming slightly. While large-cap indices fell, several midcap stocks like Gujarat Gas, NCC, and Berger Paints saw positive action.
Broader Market Performance
- Nifty Midcap 100: Up 0.3%
- Nifty Smallcap 100: Flat
- India VIX: Slightly higher, signaling rising volatility
Market Outlook Ahead
As we progress through the week, all eyes will remain on:
- RBI’s monetary policy decision
- Q1 results from remaining Nifty companies
- Global signals including U.S. job data and oil prices
- The India-U.S. trade relationship after Trump’s remarks
Key Triggers to Watch:
- RBI rate stance and inflation tone
- Bharti Airtel and Adani Ports earnings impact
- Further action in rupee and bond markets
Conclusion: Volatility Likely to Persist
The Indian stock market today reflects cautious sentiment amid global uncertainties, disappointing earnings from select sectors, and currency depreciation pressures. With the RBI decision and key earnings lined up, investors are advised to trade cautiously and keep an eye on support/resistance levels for intraday strategy.
