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Informist, Friday, Aug. 1, 2025

 

MUMBAI – The weakness in India's headline indices will continue next week as the current macroeconomic environment seems to be unfavourable, especially after the tariff imposed on the country's goods exports to the US, say analysts. Subdued corporate earnings, elevated crude oil prices, the falling rupee, persistent selling of Indian stocks by foreign investors, and expensive valuations continue to prevent the indices from rising, they said. The immediate trigger for the market will be the Reserve Bank of India's August policy meeting outcome and the governor's stance.

 

"As we move forward, the prevailing sentiment indicates a challenging environment, particularly considering the ongoing tariff uncertainty," Rajesh Bhosale, equity technical analyst at Angel One, said in a note. "Concurrently, the forthcoming MPC (Monetary Policy Committee) meeting and its outcomes are anticipated to function as significant catalysts in shaping domestic market trends." 

 

The Nifty 50 closed at 24565.35 points, down 203 points or 0.8%. The 50-stock index closed below its crucial support level of 24600 points. Analysts had said it was important for the index to remain above 24600 points and slipping below that level could pull the index down further. "In the interim, investors should exercise caution by refraining from making aggressive positions and instead focus on accumulating securities with strong fundamental attributes, considering their long-term investment potential," Bhosale said. He expects the Nifty 50 to now find support at 24500-24380 points and encounter resistance at 24800-24950 points. The BSE Sensex closed at 80599.91 points, down 585.67 points or 0.7%. All but seven stocks that are part of the 30-stock index closed lower.

 

Late Wednesday, US President Donald Trump had announced that Indian goods shipped to the US would face 25% tariff. He had also said New Delhi would face an additional penalty as it procures energy and military equipment from Russia, which continues with its war in Ukraine despite Trump's urgings. The tariffs will take effect Aug. 7. Most analysts had said the Indian equity market had discounted the negatives from the tariffs. However, some said there will be some weakness in the market till the tariff uncertainty settles, even if the fall is not sharp.

 

On the earnings front, no large-cap company is scheduled to report its June quarter earnings Monday. The market's focus will be on ITC, whose net profit missed the Street's expectations by a hair's breadth. The fast-moving consumer goods company's net profit of INR 49.12 billion for the latest quarter was largely unchanged from a year ago. Bosch, DLF, Shree Cement, Aditya Birla Capital, Aurobindo Pharma, Escorts Kubota, Marico, and Sona BLW Precision Forgings are the companies scheduled to report their results Monday.  End

 

Edited by Rajeev Pai

 

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