Mid‑Day Market Update 7 Aug 2025: US Tariffs Trigger Sharp Sell-Off, Nifty Below 24.4K
By CapitalKeeper | Mid Day | Indian Equities | Market Moves That Matter
Indian markets slide mid-day on August 7, 2025 as U.S. imposes second 25% tariff on Indian exports. Nifty drops to 24,381, Bank Nifty down to 55,065. Financials and rate-sensitive sectors falter after RBI holds rates. Export-heavy IT and pharma bear the brunt. Key levels and sector cues explained.
Mid‑Day Market Blog – August 7, 2025
Index Snapshot
- Nifty 50: Opened at 24,464.20, now 24,381.65 (−82.55 pts; −0.34%)
- Bank Nifty: From 55,215.65 to 55,065.75 (−149.90 pts; −0.27%)
- Sensex: Opened 80,262.98, now 79,875.54 (−387.44 pts; −0.48%)
- Fin Nifty: From 26,265.50 to 26,213.65 (−51.85 pts; −0.20%)
The markets turned sharply weaker mid‑session, reflecting growing macro concerns and negative global cues.
Sector-Wise Breakdown & Notable Movers
Financials & Fin Nifty
Financials came under pressure with both Bank Nifty and Fin Nifty sliding. With RBI maintaining neutral rates and global uncertainty mounting, risk appetite has dropped, impacting financial counters.
IT & Export-Oriented Sectors
IT, pharma, and auto components remain under pressure as the U.S. imposed an additional 25% tariff on Indian exports dropping markets to their lowest levels in three months. Analysts are now planning for potential delays to trade dialogue, intensifying risk-offs in export-led sectors.
Real Estate & Consumer
Rate-sensitive realty, auto, and consumer stocks trended lower after the RBI held interest rates steady, disappointing expectations of further easing that would’ve provided growth legroom.
Defensive Plays
There was limited plus side; defensive sectors like FMCG and utilities held ground moderately better, but gains were modest at best.
Technical Overview
- Nifty: Broke below support at 24,400; vital near-term support is now 24,350–24,380. Resistance lies overhead at 24,450–24,500.
- Bank Nifty: Holding between 55,000–55,100. A fall below 55,000 could open a slide toward 54,800.
- Fin Nifty: Tactical support between 26,150–26,200; resistance around 26,250–26,300.
Key Drivers and Global Cues
RBI Holds Rates; Neutral Stance
The RBI maintained the repo rate at 5.5%, and extended a neutral policy stance with no immediate rate cuts in sight. Though inflation estimates were trimmed to 3.1%, markets interpreted the move as cautious, not accommodative.
Escalating U.S. Tariffs
A second 25% levy on Indian goods has ignited fears of prolonged trade shocks. Analysts worry India’s GDP growth could fall below 6% if exports continue to suffer.
Continued FII Outflows
August is already seeing sustained foreign investor outflows ($900m so far), compounding pressure from July’s $2bn exodus.
Rupee Holds—For Now
Despite tariffs and weak sentiment, the rupee stabilized after early volatility. Persistent interventions by RBI are likely supporting levels near ₹87–88/USD.
Mid‑Day Strategy & Trade Watch
| Index | Support Levels | Resistance Zones | Intraday Trade Idea |
|---|---|---|---|
| Nifty | 24,350–24,380 | 24,450–24,500 | Sell rallies around 24,450; target down to 24,350 |
| Bank Nifty | 55,000–55,050 | 55,150–55,200 | Short near 55,100 with stop above 55,200 |
| Fin Nifty | 26,150–26,200 | 26,300–26,350 | Trade breakdown; stop above resistance |
| Defensive picks | FMCG, Utilities | — | Rotate into names like HUL for safety amid volatility |
| Watchlist | Realty & Auto | — | Vulnerable to continued policy caution |
Mid‑Day Summary
The market is under mounting pressure as RBI holds rates, even as U.S. tariffs escalate, and exporters feel the heat. Financials and sensitive sectors are giving up ground. Key technical levels now pivot around Nifty 24,350–24,450 and Bank Nifty 55,000–55,200. Defensive anchors like FMCG may offer cushion, but overall sentiment remains fragile.
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