Stock Market Closing Bell: US Tariff Shock Drags Indian Markets; Sensex Falls 849 Points, Nifty Below 24,750

Stock Market Closing Bell: Domestic equities closed sharply lower on Tuesday after the United States Customs Department confirmed its decision to impose 50 per cent tariffs on Indian goods. The draft notification was published, making the steep levies effective from August 27, 2025.

Though investors had largely anticipated such a move, there was still some expectation of a delay or back-channel relief. With the announcement now turning the tariffs into a reality, investor sentiment weakened and selling pressure emerged across sectors.

Benchmarks Slide Over 1%

The BSE Sensex ended the day at 80,786.54, down 849.37 points or 1.04 per cent. The index opened at 81,377.39 and touched an intraday low of 80,685.98, before closing weak. The broader Nifty 50 also came under pressure and closed at 24,712.05, falling 255.70 points or 1.02 per cent.

Market breadth was weak as 2,280 stocks declined on the NSE compared to 728 that advanced, while 90 stocks were locked in lower circuits against only 57 in upper circuits.

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Sectoral Impact

Selling pressure was seen across most sectors. Banking, financial services, metals, real estate, and energy stocks witnessed the sharpest declines. Heavyweights such as Reliance, ICICI Bank, Axis Bank, L&T and Bajaj Finance dragged the indices lower.

Sun Pharma fell 3.40 per cent, Tata Steel slipped 2.88 per cent, Bajaj Finance was down 2.67 per cent and M&M lost 2.02 per cent.

On the positive side, select stocks managed to hold their ground.

Hindustan Unilever gained 2.35 per cent, Maruti added 1.85 per cent, ITC rose 0.93 per cent and TCS was up 0.49 per cent. As a result, the FMCG index emerged as the only sectoral gainer, rising 0.91 per cent, while most other sectoral indices closed in the red.

Trade Tensions and Global Risks

Investor worries deepened after Washington confirmed that it would double duties on a wide range of Indian goods, raising tariffs from 25 per cent to 50 per cent.

The move, seen as a penalty for India’s continued imports of Russian crude oil and military equipment, threatens to hit export-heavy industries including textiles, apparel, gems and jewellery, auto components, IT services, and leather goods.

At the same time, global risks are adding to market nervousness. Ukraine’s strike on a major Russian nuclear facility, which sparked a fire at the Ust-Luga fuel export terminal, has already pushed crude oil prices higher.

For India, which imports most of its oil, the rise in crude poses risks to inflation, the current account balance, and overall economic stability.

Expert View

Commenting on the market weakness, Sugandha Sachdeva, Founder of SS WealthStreet, said, “Domestic equity markets are witnessing a sharp decline as escalating trade tensions between the U.S. and India weigh heavily on investor sentiment."

"With the new tariff measures set to take effect from August 27, 2025, risk appetite has deteriorated significantly,” she said.

She added that while export-oriented sectors face a direct hit to margins and competitiveness, domestically driven sectors such as FMCG, banking and cement could provide relative stability in the coming months.