Mid‑Day Market Update 1 Aug 2025: Nifty Recovers After Tariff Shock, FMCG Leads, Financials Hold
By CapitalKeeper | Mid Day | Indian Equities | Market Moves That Matter
Indian markets rebound mid-day on August 1, 2025 after tariff-induced sell-off. Nifty trades near 24,670 and Bank Nifty holds 55,800 despite renewed weakness in IT and export-linked sectors. HUL and FMCG rally as global trade jitters weigh on sentiment.
📊 Index Update (Mid‑Day, August 1)
- Nifty 50: Opened at 24,642.25, now 24,668.50 (+26.25 pts; +0.11%)
- Bank Nifty: Opened at 55,897.15, now 55,824.45 (−72.70 pts; −0.13%)
- Fin Nifty: From 26,619.40 to 26,572.55 (−46.85 pts; −0.18%)
After a drop at the open on fresh U.S. tariff news, markets have staged a modest recovery.
🔍 Sector Snapshot & Key Movers
🛢️ Financials
- Financials have drifted lower, mirroring the drop in Bank Nifty and Fin Nifty. Early gains were short-lived after the tariff announcement overshadowed domestic earnings optimism.
🧑💻 IT & Export‑Linked Sectors
- IT, Pharma, and Auto components remain weak, pressured by the 25% U.S. tariff on Indian goods floating uncertainty over exports and margins. Nifty IT index down 0.4%—extending prior weakness.
🛒 FMCG & Defensive Names
- Hindustan Unilever (HUL) popped over 4% on strong Q1 volume-led growth and rising investor interest in defensive plays amid volatility.
- Broad FMCG index up 1%, offering a counterweight to export-heavy stress.
🏗️ Midcaps / Domestic Plays
- Infrastructure and domestic consumption names showing resilience as global trade fears limit broader market gains.
📈 Technical Outlook
- Nifty remains within the 24,650–24,700 range. Resistance near 24,700–24,730; support at 24,620.
- Bank Nifty holding around 55,800, with key support nearing 55,700.
- Fin Nifty is testing support at 26,550–26,570; resistance at 26,600.
🌍 Global & Macro Themes
- New U.S. Tariffs Trigger Volatility
US announces fresh 25% import tariff on India effective today, along with unspecified penalties. Indian markets opened sharply lower but recovered modestly as investors interpreted it as negotiation pressure rather than final rulings. FPIs sold ₹5,589 Cr ($638m) on Thursday, marking the ninth consecutive day of outflows. - Rupee Stabilization via RBI Intervention
INR rebounded 0.3% to ₹87.30/USD after slipping towards ₹87.74 amid aggressive forex intervention and short covering. - Trade‑Deal Uncertainty Persists
With the Aug 1 deadline here, India‑U.S. negotiations remain incomplete. Markets are cautious on sectors with high export exposure, awaiting clarity post-talks.
🔔 Intraday Strategy & Watchlist
Nifty
- Support: 24,620–24,650
- Resistance: 24,700–24,730
‑ A break above 24,730 could invite upside; otherwise risk remains skewed to support retests.
Bank & Fin Nifty
- Watch Bank Nifty near 55,700–55,800; break below may drag Fin Nifty toward 26,500 zone.
- A rebound should aim toward 55,900–56,000.
Sector Watch
- FMCG names (HUL, ITC) offer low-volatility trade setups.
- IT & Pharma names could extend weakness—Dr Reddy’s and Sun Pharma among key ones.
- Financial names will track SBI Life, HDFC/ICICI bank reactions post-tariff announcement.
✅ Mid‑Day Verdict
Markets began the session sharply lower in reaction to the U.S. tariff announcement but recovered marginally, led by defensive consumer segments. Banking and financials are flat under pressure, while traders remain cautious on export-linked sectors. Key support-resistance zones: Nifty at 24,650–24,700 / 24,730, Bank Nifty at 55,700–55,900.
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