Sensex slips 450 pts, Nifty below 24,600 as Trump threatens substantial tariffs; IndusInd Bank up 5%

The broader market witnessed steeper cuts and edged lower by up to 0.7 percent.

Benchmark indices Nifty and Sensex were off to a weak start on the bourses on August 5 after fresh tariff threats by U.S. President Donald Trump. On Monday, Trump warned of a “substantial” hike in duties on Indian exports, citing continued purchases of Russian oil. IndusInd Bank grabbed headlines, rising over 5 percent despite overall weakness.

The broader market witnessed steeper cuts and edged lower by up to 0.7 percent. At about 10 am,  the Sensex was down 435.93 points or 0.54 percent at 80,582.79, and the Nifty was down 123.75 points or 0.50 percent at 24,599.00. About 1477 shares advanced, 1672 shares declined, and 145 shares were unchanged.

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Experts say that in the near term, the market remains in uncharted territory, with clarity likely to emerge only after the next round of US-India trade negotiations. A trade deal that caps tariffs at 20 percent or lower would be seen as a positive trigger. However, if the 25 percent tariff stays, markets could face further downside, as such a move may weigh on India’s growth prospects and corporate earnings, making current high valuations harder to justify.

As markets continue to trade, sectoral indices are showing a mixed trend. The India VIX is up 1.5 percent at 12.15, indicating a slight uptick in market volatility. Among the gainers, Nifty Energy is up 0.21 percent, PSU Bank has added 0.13 percent, and Realty is marginally higher by 0.12 percent. On the flip side, Nifty Oil & Gas is the biggest laggard, down 1.29 percent, followed by Nifty IT, which has slipped 0.93 percent. The Nifty Midcap 100 and Smallcap 100 are down 0.70 percent and 0.38 percent, respectively, reflecting broader market weakness. Other key sectors like Auto, Bank, FMCG, Infra, and Pharma are also trading in the red, albeit with modest losses.

Among individual stocks, IndusInd Bank shares were in focus, rising by over 5 percent after the Reserve Bank of India approved the appointment of Rajiv Anand as the new managing director and CEO. Domestic brokerage Emkay Global noted, "We believe Anand brings on board an extensive experience across wholesale/retail banking, digital transformation, and capital markets, having worked across global financial institutions."

Shares of FMCG major Marico slipped over a percent on August 5 after the company reported an 8.2 percent year-on-year rise in consolidated net profit to Rs 513 crore for the April–June quarter of FY26. The FMCG major’s revenue from operations rose 23.3 percent to Rs 3,259 crore, driven by broad-based growth across its product portfolio.

Shares of Sona BLW Precision Forgings gained over 2 percent after the company reported a 12.2 percent decline in net profit to Rs 124.7 crore in the first quarter of the current fiscal year. The company reported that its total revenue from operations reduced 4.2 percent at Rs 854 crore. After the earnings, CLSA has retained an outperform rating on Sona BLW with a target price of Rs 566 per share. This implies an upside potential of 28 percent from the last close.

Technical View

An inside bar candle pattern suggests that bulls are actively defending key support levels. The 24,600–24,500 zone has consistently acted as a strong floor since May, holding firm through several pullbacks. As long as this support remains intact, bulls are likely to attempt a rebound. However, the market remains under pressure, with resistance expected to cap upside moves. In the short term, the 24,850–24,950 range poses immediate resistance. With this setup, Nifty is expected to trade within a range, making a buy-on-dips and sell-on-rise strategy appropriate—accumulate near support and consider booking profits around resistance.

IndusInd Bank, UltraTech Cement, Grasim, Axis Bank, and Maruti Suzuki were the top gainers on the Nifty. Laggards on the Nifty included Bharat Electronics, Infosys, Reliance Industries, HDFC Bank, and Tata Consumer Products.