Benchmark indices Nifty and Sensex slipped for a third session in a row on August 7 after US President Donald Trump announced plans to double tariffs on Indian goods to 50 percent. However, markets may find some temporary relief as the fresh 25 percent levy comes with a 21-day window, giving India a brief opportunity to negotiate a trade deal.
At about 9:25 am, the Sensex was down 209.33 points or 0.26 percent at 80,334.66, and the Nifty was down 64.15 points or 0.26 percent at 24,510.05. About 910 shares advanced, 1793 shares declined, and 122 shares were unchanged.
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"The 21-day window before the additional 25 percent US tariff takes effect offers India a chance to negotiate and potentially strike a deal. However, the broader trade outlook remains clouded by uncertainty, with little clarity on how far either side is willing to compromise. President Trump, buoyed by recent trade wins with other partners like the EU, is unlikely to back down from his hardline — and arguably unjustified — stance." V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said.
"For India, the challenge is greater, as the US holds the upper hand in negotiations. So far, India’s response has been measured and pragmatic. While markets are unlikely to panic immediately, sentiment is expected to remain weak in the near term amid lingering trade tensions." he added.
Among individual stocks, Bajaj Auto slipped as much as 4 percent on August 7 after the company reported a 14 percent year-on-year rise in consolidated net profit to Rs 2,210.44 crore for the fiscal first quarter of FY26. Revenue from operations climbed to Rs 13,133.35 crore in Q1 FY26, marking a 10 percent increase from the same quarter last year. Bernstein and CLSA have given outperform rating on the counter.
Shares of lifestyle retailer Trent rose 1 percent after the company reported a 9 percent year-on-year (YoY) increase in consolidated net profit to Rs 425 crore for Q1FY26, compared to Rs 391 crore in the same quarter last year. Revenue rose 19 percent YoY to Rs 4,883 crore from Rs 4,104 crore. Domestic brokerages Motilal Oswal and Avendus Spark have given buy ratings.
Two-wheeler major Hero MotoCorp rose nearly 2 percent after it reported a flat net profit at Rs 1,126 crore for the quarter ended June 30, 2025 as against Rs 1,123 crore a year ago. However, the firm beat estimates as a Moneycontrol poll of eight brokerage firms pegged the net profit at Rs 1,054 crore. Hero's revenue declined 5.5 percent to Rs 9,579 crore in Q1FY26 as against Rs 10,144 crore in Q1FY25.
Technical View
The Nifty continues to trade within a tightly knit consolidation range of 24,500–24,750, as evidenced by successive small-bodied candles on the daily chart. A directional breakout from this band will likely dictate the next phase of market momentum. Until then, the Nifty may continue its sideways to choppy trajectory. The 100-day exponential moving average (100-DEMA), currently near 24,595, has consistently acted as a support threshold. However, a decisive breakdown below the 24,535–24,500 zone could trigger further downside toward 24,300–24,250. On the upside, immediate resistance is seen around 24,760, coinciding with the 10-DEMA. Unless the index convincingly reclaims this level, any rebound is expected to encounter selling pressure.
Hero MotoCorp, Trent, Cipla, Bajaj Finserv, and Tech Mahindra were the top gainers on the Nifty. Laggards on the index included Tata Motors, Kotak Mahindra, Jio Financial Services, Coal India, and Tata Steel.
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