- Sensex: Closed at 80,623.26, up 79.27 points or 0.10%, after recovering from a low of 79,811.29.
- Nifty50: Closed at 24,596.15, up 21.95 points or 0.09%, recovering from a low of 24,344.15.
The initial decline came after the US announced an additional 25% tariff on Indian goods, raising the total tariff to 50%. However, the market managed to recover through the session as key stocks and sectors rebounded.
Broader indices performance:
- Nifty Midcap 100: Closed 0.33% higher, indicating some recovery in mid-sized stocks.
- Nifty SmallCap: Ended 0.17% higher, showing stability in smaller companies.
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Impact on the stock market
The market’s recovery was led by the IT and Pharma sectors, which showed strong performances across both the Sensex and Nifty indices:
- Nifty IT: Closed 0.87% higher, driven by strong earnings from major IT companies.
- Nifty Pharma: Ended 0.75% higher, reflecting investor optimism around healthcare and pharmaceutical stocks.
- Nifty Media: Also saw a good rise, up by 0.99%, supported by positive market sentiment.
- Nifty Auto: Up by 0.25%, with Hero MotoCorp among the top gainers.
On the other hand, sectors like Nifty Realty and Oil and Gas faced declines, down 0.13% and 0.19%, respectively, showing that not all sectors could maintain the bullish momentum.
| Sector/Index | Performance |
| IT & BPM sector | 0.87% |
| Healthcare sector | 0.61% |
| Oil & Gas sector | -0.19% |
| Real estate sector | -0.13% |
| PSU Bank in India | 0.29% |
Top gainers today
| Company | Price (in ₹) | Change % |
| Hero Motocorp Share Price | 4,660.70 | 4.15 |
| Tech Mahindra Share Price | 1,482.00 | 1.58 |
| JSW Steel Share Price | 1,064.80 | 1.16 |
| Wipro Share Price | 242.32 | 0.98 |
| Eternal Share Price | 301.75 | 0.97 |
Top losers today
| Company | Price (in ₹) | Change % |
| Adani Enterpris Share Price | 2,249.80 | -2.20 |
| Adani Ports Share Price | 1,345.40 | -1.59 |
| Trent Share Price | 5,303.50 | -0.99 |
| Tata Motors Share Price | 646.50 | -0.97 |
| Grasim Share Price | 2,743.70 | -0.80 |
Market aftermath: Impact on stocks
Hero MotoCorp: A steady performer despite mixed results
Hero MotoCorp shares rose by 2% after the company reported its Q1FY26 earnings. While the company faced a 5.5% decline in revenue, posting ₹9,579 crore (compared to ₹10,144 crore in Q1FY25), it managed to deliver a flat net profit of ₹1,126 crore, ahead of analysts’ expectations.
- Despite the decline in revenue, Hero MotoCorp’s stable margins and a consistent demand outlook have driven optimism. The company’s share price has risen 18% in the last three months, signaling that investors still have confidence in its long-term prospects.
The company’s management is optimistic about maintaining strong demand, even in the face of challenges, which could support further stock growth as the year progresses.
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Textile and shrimp stocks hit by tariff hike
Stocks in the textile and shrimp sectors took a hit following the announcement of additional tariffs by the US on Indian goods. The new tariffs are expected to weigh heavily on exports in these industries, as they will raise the cost of doing business in one of India’s largest export markets.
- Gokaldas Exports and KPR Mill fell by up to 4%.
- Avanti Feeds, a major shrimp exporter, saw its shares fall by 4% as well.
This tariff increase has intensified concerns about the economic impact of deteriorating trade relations between the US and India, especially in industries that are heavily reliant on exports.
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Bajaj Electricals: A steep drop in profits
Bajaj Electricals reported a 97% drop in net profit, falling to ₹91 lakh for Q1FY26, compared to ₹28.11 crore in the same period last year. The decline was largely attributed to lower sales in the consumer products segment and an ex gratia payment related to its Nashik factory.
- The company’s total revenue for the quarter was ₹1,064.59 crore, down from ₹1,154.91 crore in Q1FY25.
- Despite a solid performance in its lighting solutions segment, the downturn in the consumer products division has raised concerns about the company’s ability to maintain strong growth in the short term.
Investors will be closely monitoring the company’s strategies to recover from this slump, especially in the wake of declining profits.
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Crude oil prices fluctuate amid tariff uncertainty
Crude oil futures showed mixed movements today, with Brent crude trading at $67.46, up 0.85%, while WTI futures were at $64.95, up 0.93%. However, domestic crude oil prices were slightly down due to the ongoing uncertainty surrounding the tariffs and their potential effect on the global supply chain.
- August crude oil futures on the Multi-Commodity Exchange (MCX) traded at ₹5,705, slightly down by 0.14%.
- The EIA (Energy Information Administration) reported a 3 million barrel decline in US crude inventories for the week ending August 1, which helped push prices slightly higher.
Despite the recovery in oil prices, Trump’s tariff on Indian imports continues to cause ripples in the market. This is adding to concerns about the long-term impact of the tariffs, as well as the shifting dynamics of the global oil trade, particularly with Russia and the US.
Conclusion
Today, Indian markets managed to recover after a rocky start, with both Sensex and Nifty posting modest gains by the end of the trading session. While the IT and Pharma sectors led the charge, textile and shrimp stocks were hit hard by the US’s tariff hike.
The impact of the additional tariffs on the textile and shrimp industries is a clear reminder of the global economic uncertainties that are currently affecting trade relations between India and the US. On the other hand, the resilience shown by companies like Hero MotoCorp and the recovery in broader indices is encouraging for long-term investors.
As global tensions continue to influence market movements, traders and investors will need to stay vigilant in navigating the complexities of trade policies, oil price fluctuations, and sector-specific performance. The outlook remains cautiously optimistic as sectors like IT and Pharma continue to support market growth, despite the challenges ahead.
For more stock market insights, check out the StockGro blog.
