Weighed down by concerns that higher US tariffs could hurt the Indian economy, both benchmark indices posted another session of steep losses. The Nifty 50 broke its key support level, falling 0.85% to 24,509 points, while the S&P BSE Sensex slipped 0.87% to the 80,080 level.
The broader markets also ended with sharp losses, as the Nifty Midcap 100 and Nifty Smallcap 100 indices dropped over 1.3% each. All major sectoral indices closed lower, barring the Nifty Consumer Durables index. Among the worst hit were Nifty IT and Nifty Realty, which declined 1.60% and 1.50%, respectively.
The 50% tariffs on Indian goods imposed by the Donald Trump administration came into effect on Wednesday, following a notice issued by the US Customs and Border Protection (CBP).
According to the notice, the additional duties are being levied to implement the President’s Executive Order 14329 of August 6, 2025, titled “Addressing Threats to the United States by the Government of the Russian Federation.”
President Trump, who has frequently described India as a “tariff king,” cited the US trade deficit with India and New Delhi’s continued purchases of Russian oil and military equipment as reasons for the move.
The higher duties apply to all Indian products either entered for consumption in the US or withdrawn from bonded warehouses. With this, the 50% tariffs on Indian imports into the US are now in full force.
Earlier, on July 30, US President Donald Trump had announced an additional 25% tariff on Indian goods. In contrast, competitors such as Vietnam (20%), Bangladesh (18%), Indonesia, Malaysia, and the Philippines (19%), as well as Japan and South Korea (15%), enjoy significantly lower rates, according to reports.
Indian Prime Minister Narendra Modi remained firm, asserting that his government will find a way forward despite the economic pressure from Washington as the tariffs take effect.
An analysis by ICRIER estimates that nearly 70% of India’s exports, valued at USD 60.85 billion, are exposed to the elevated duties. Economists at SBI Research estimate that the impact of a 50% tariff on the economy will be significant in the long run. The tariffs will apply to $45 billion worth of major Indian exports.
Sectors such as textiles and gems & jewelry—both labor-intensive industries—are expected to face moderate pressure, SBI Research said, adding that it is also concerned India’s trade surplus with the US could dissipate in the worst possible scenario.
Over 20 Nifty 500 stocks closed with losses between 4% and 7%
Among the worst performers, Adani Total Gas led the pack, falling 7.2% to ₹589 apiece after being excluded from the F&O segment; the stock will now only be available for trading in the cash market starting next month. Aditya Birla Fashion closed 5.7% lower at ₹77.9, while Poonawalla Fincorp and Olectra Greentech ended with losses of 5.6% and 5.5%, respectively.
InterGlobe Aviation, the parent company of IndiGo, saw its shares decline 5.2% to ₹5,734 after reports emerged that the Rakesh Gangwal family had offloaded 1.2 crore shares, amounting to a 3.13% equity stake, via a block deal.
In May, Gangwal and the promoter group had already sold up to 3.4% stake. Since stepping down from InterGlobe’s board in February 2022, Gangwal has been steadily paring his holdings as part of a plan to fully exit the company following a governance dispute with co-founder Rahul Bhatia.
Extending its two-day losing streak, 360 One Wam slipped another 4% to ₹1,043, while CESC, eClerx Services, Sundaram Finance, Sai Life Sciences, and around 10 other index constituents closed with losses of over 4%. Overall, 100 stocks ended with cuts of more than 2%.
Vardhman, Ola Electric lead gainers as select stocks defy market sell-off
Despite the continued sell-off in the market, some stocks bucked the trend, with Vardhman Textiles emerging as the top performer, gaining 13% to ₹450, while Ola Electric extended its rally for the third straight session, rising another 8% to ₹54.8.
After being under sustained bearish pressure, shares of the electric two-wheeler (E2W) maker staged a strong comeback in August, gaining 23% so far this month. If the momentum continues through the end of August, it will mark the stock’s biggest monthly gain since its listing in August 2024.
The bullish streak was fueled after founder and chairman Bhavish Aggarwal, at the company’s annual Sankalp event, outlined growth plans to capture a 25–30% share of India’s two-wheeler EV market, backed by vertical integration and new product launches.
Meanwhile, Sundram Fasteners rallied 5.1% to ₹1,020, while Jaiprakash Power Ventures, Waaree Energies, RattanIndia Enterprises, AstraZeneca Pharma, Triveni Engineering, Caplin Point Laboratories, and 10 other stocks closed with gains between 2% and 5%.
Discalimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
