Markets Hit 3-Month Low: Sensex Slips Below 80,000, Nifty Near 24,350; Know Factors Behind The Fall

Last Updated:August 08, 2025, 16:02 IST

The BSE Sensex declines by 765.47 points to close at 79,857.79, while the NSE Nifty slips by 232.85 points to 24,363.3.

Sensex Today.

The domestic equity markets on Friday saw a massive selloff to hit a three-month low, due to tariff-related concerns and persistent foreign fund outflows. The BSE Sensex declined by 765.47 points to close at 79,857.79, while the NSE Nifty slipped by 232.85 points to 24,363.3.

Bharti Airtel was the top loser on the BSE Sensex, which traded lower by 3.41% at Rs 1,858.8 apiece after Indian Continent Investment Ltd, a shareholding entity led by billionaire Sunil Mittal, launched a block deal to sell a portion of its stake in Bharti Airtel worth over Rs 12,500.

Among the 30 Sensex shares, 25 ended the day in the red. Among the top losers were Bharti Airtel, Tata Motors, Mahindra & Mahindra, Kotak Mahindra Bank, and Reliance falling by up to 3.41%.

On the flip side, five stocks managed to close in green. NTPC, Titan, Trent, ITC, and Bajaj Finserv rose by up to 1.58%.

All sectors posted losses. On the sectoral front, Nifty Realty (-2.11%), Nifty Consumer Durables (-1.91%), Nifty Auto (-1.40%), Nifty Pharma (-1.30%), Nifty IT (-0.95%), Nifty FMCG (-0.72%), and Nifty Financial Services (0.94%) showed most weakness.

In the broader market, the BSE Midcap and the BSE Smallcap indices declined by 1.56% and 1.03%, respectively.

Why Did Markets Fall Today? Experts Highlight Factors

US President Donald Trump’s decision to double tariffs on Indian goods has raised uncertainty over trade negotiations, weighing on investor sentiment. His administration has imposed an additional 25 per cent tariffs on Indian imports, taking the total to 50 percent, citing India’s continued oil imports from Russia. Also, Trump has said there will be no trade talks with India until a tariff dispute is resolved.

“The Indian equity market exhibited downward movement, closing at a three-month low amid growing concerns over the impact of US tariffs on Indian exports. FIIs remained net sellers, intensifying the pressure on domestic indices. The pessimism was broad-based, with realty and metals bearing the biggest brunt,” said V K Vijayakumar, chief investment strategist of Geojit Investments Ltd.

Additionally, global financial institutions have begun revising India’s economic outlook downward, citing the adverse effects of the ongoing tariff concern. Growth projections for 2025 and 2026 have been lowered, reflecting heightened uncertainty surrounding India’s trade and macroeconomic environment, he added.

Yesterday’s sharp 250-point recovery from the low level in the Nifty was caused by short covering triggered by the strong buying by DIIs of Rs 10,864 crore, he added.

“In the present context of negative sentiments in the market caused by the tariff skirmishes between India and the US, FIIs are likely to continue selling in the cash market. The only saving grace is the sustained DII buying which remains strong. The strong DII buying assisted by sustained flows into mutual funds can prevent a crash in the market. Investors may wait and watch for the developments on the tariff front to unfold,” Vijayakumar said.

Among the 4,173 stocks traded on the BSE, a total of 1,526 advanced, whereas 2,501 stocks declined. A total of 146 shares unchanged.

A total of 119 stocks hit 52-week highs, while 110 stocks hit 52-week lows.

Prashanth Tapse, senior vice-president (research) of Mehta Equities Ltd, said, “Selling intensified further with the Sensex ending below the psychological 80k mark as analysts believe that once the stiff tariff penalty on Indian goods by the Trump administration comes into effect, India’s growth could be hit going ahead. While inflation is likely to go up next year, the likely impact on growth due to increased tariff penalty by the US government would hit investors’ sentiment badly and fuel fund outflows further.”

Nifty Technical Analysis

The Nifty’s put-call ratio stood at 0.48, indicating a strong build-up of bearish sentiment in the market, as significantly more put options were being traded compared to call options.

“The bears resumed their downward move after a brief pause in the previous session. Nifty extended its losing streak to the sixth consecutive week, slipping below its 100-DMA at 24500, which is now expected to act as an immediate hurdle. The 200-DMA, placed at 24050, is likely to offer near-term support. The overall trend remains weak as long as the index trades below 24800, with any pullbacks likely to face selling pressure,” Nilesh Jain, head–technical and derivatives research analyst (equity research) of Centrum Broking Ltd.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

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