Sensex Crashes About 600 Points, Nifty Drops Below 24,600 - Here's Why the Market Ended the Week In Red

Indian stock market closed the week witnessing a fall of Around 1% on August 1, 2025 extending losses from the previous session and hitting its lowest level since mid-June. The Nifty 50 and Sensex have fallen for five straight weeks, marking their longest losing streak since August 21, 2023. The decline was dragged by the poor performance in the pharma sector.

The Sensex dropped 585.67 points or 0.72% to close at 80,599.91, while the Nifty 50 declined 203 points or 0.82% to 24,565.35. The market experienced a broad sell-off, with mid-cap and small-cap stocks losing even more.

Top Gainers And Losers:

Trent, Eicher Motors, Asain Paints, Hindustan Unilever, Nestle India, ITC, Hero Motocorp, and Kotak Mahindra Bank were the top Nifty gainers. On the other hand, Sun Pharma, Dr Reddy's, Adani Entertainment, Cipla, Tata Steel, Infosys, and Tata Motors were the top losers for the day on the nifty 50.

Among sectors, only Nifty FMCG ended the week in green, gaining almost 3%, led by Varun Beverages and HUL. Nifty Realty was the worst-performing sector, falling 6%, with Godrej Properties and Brigade Enterprises seeing the biggest declines.

On the BSE, the Midcap index was down 1.37% and the Smallcap index dropped 1.59%.
The Nifty Midcap 150 index dropped nearly 2% for the week, falling for the second week in a row, mainly due to losses in Indus Tower and MRPL. The Nifty Smallcap 250 also fell by 3%, dragged down by PNB Housing and Home First Finance.

Why Did the Market Fell Today?

Today's decline followed US President Trump's executive order on Thursday imposing new tariff rates ranging from 10% to 41%, effective August 1, which includes India. Disappointing economic data from India's top trading partner, China, also weighed on sentiment.

"The Indian equity market extended its decline for a second day, pressured by renewed tariff threats and punitive duties that could undermine India's global trade competitiveness. Investor sentiment weakened further as FIIs now hold the second-highest net short position in derivatives, reflecting elevated caution.

Globally, markets turned negative amid rising U.S. inflation and trade tensions. While the sell-off was broad-based, FMCG stocks emerged as a defensive play, supported by attractive valuations, resilient demand, and relative immunity to external trade disruptions," said Vinod Nair, Head of Research, Geojit Investments.

Nifty Outlook

Nifty is currently placed near the crucial support of around 24500 levels (multiple swing lows of May-June 25), but the sustainable recovery has not emerged from near the supports so far. Bearish lower highs and lower lows pattern is intact on the daily chart.

Nifty on the weekly chart formed a reasonable negative candle this week, which is for the fifth consecutive bearish candle formation on the trot.

The underlying trend of Nifty remains weak. A decisive move below the support of 24500, Nifty could slide down towards the next lower area of 24100-24000 levels in the near term. Immediate resistance is placed at 24950 levels," noted Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

"Sentiment remains weak, with the potential for the correction to extend towards 24,400-24,450. A further decline is likely if it slips below 24,400; otherwise, a recovery can be expected. On the higher side, resistance is seen at 24,600-24,650 and 24,850," Rupak De, Senior Technical Analyst at LKP Securities.

Rupee VS Dollar

The rupee closed 6 paise stronger at 87.54 against the US dollar on Friday, compared to 87.60 on Thursday.

"Rupee traded positive by 10 paise at 87.53, though overall sentiment remained under pressure as the dollar index approached the 100 mark and the U.S. imposed a 25% tariff on India. Persistent weakness in the capital markets amid ongoing tariff concerns continues to weigh on the rupee.

Additionally, market participants are closely watching today's key U.S. data releases-Non-Farm Payrolls and Unemployment Rate-which could significantly influence the dollar's direction. The rupee is expected to remain volatile within a range of 87.25 to 88.00," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

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