Sensex Drops 296 Points in Choppy Trading; Nifty Slips Below 24,800;

TATASTEEL

l Falls 3%,

SUNPHARMA

Sheds 2%

Indian stock markets closed lower on Thursday after a turbulent session, though they managed to recoup a portion of their sharper early declines. Investors largely viewed the U.S.'s proposed 25% tariff and vague punitive measures, expected to come into effect on August 1, as a bargaining tactic rather than a concrete shift in trade policy. The BSE Sensex declined by 296.28 points (0.36%) to finish at 81,185.58, while the NSE Nifty dipped 86.70 points (0.35%) to end at 24,768.35. Both benchmarks had earlier plunged close to 0.9% during intraday trade. Markets initially tumbled following the announcement by U.S. President Donald Trump regarding the imposition of a 25% tariff on Indian imports and other unspecified sanctions. He noted that discussions with India were still underway. Mid- and small-cap indices each declined by roughly 1%. The textile sector was among the worst affected, with stocks like Welspun Living, Vardhman Textiles, KPR Mills, and Gokaldas Exports retreating between 3.2% and 5.1%. On a monthly basis, both indices—Sensex and Nifty—lost around 3%, as broader market performance lagged due to persistent foreign institutional investor (FII) outflows and disappointing earnings from key IT and financial sector firms. Key Market Pressures: Trump’s proposed 25% import duty and penalties Federal Reserve signals reduced chances of a rate cut Climbing crude oil prices Ongoing FII withdrawals exert downward pressure Disclaimer: This is not investment advice. The information is provided solely for informational purposes. Please consult a financial advisor before making any investment decision.