Weekly Market Wrap: US Tariffs lead to another week of selling

4 Aug 2025 , 04:42 PM

In another disappointing week for Indian markets, most large-cap indices fell, and mid-caps fared worse. In a 5^th consecutive week of losses, NIFTY lost 1.1% last week. In what was perceived negatively by market participants, the US announced a 25% tariff on exports from India. This led to widespread selling in many export sectors. Also, FII outflows continued to impact sectors with high FII holdings. Only FMCG stocks bucked the trend as they benefited from sector rotation trades.

NIFTY 50 – A black July as NIFTY falls in all of the weeks

Weekly Performance: -1.1%

date	open	high	low	close
2025-08-01	24734.9	24784.2	24535.1	24565.3
2025-07-31	24642.2	24956.5	24635.0	24768.3
2025-07-30	24890.4	24902.3	24771.9	24855.1
2025-07-29	24609.7	24847.2	24598.6	24821.1
2025-07-28	24782.4	24889.2	24646.6	24680.9
2025-07-25	25010.3	25010.3	24806.3	24837.0

Source: NSE

The NIFTY 50 index fell by 1.09% and posted its fifth consecutive weekly loss. Since June 27, the index has seen a total decline of 4.25%. Infosys, Kotak Mahindra Bank, Tata Consultancy Services, Bharti Airtel and Bajaj Finance have been the top drags on the index with their combined losses causing a significant chunk of the index falls. On the other hand, select financials and consumer stocks bucked the trend. Larsen & Toubro, Hindustan Unilever, ITC, HDFC Bank and Asian Paints witnessed gains for the week.

The market breadth was poor, as 36 declined while only 14 advanced. US tariffs on India were among the key issues for the market last week. FIIs continued to pull out and some of the heavyweight stocks continue to witness pressure from a lackluster earnings season.

NIFTY MIDCAP SELECT – Another sharp fall

Weekly Performance: -2.0%

date	open	high	low	close
2025-08-01	12865.5	12871.8	12645.0	12668.2
2025-07-31	12826.8	12978.5	12761.9	12867.1
2025-07-30	13043.3	13044.2	12932.1	13009.7
2025-07-29	12876.1	13048.7	12870.3	13033.7
2025-07-28	12933.0	13103.4	12827.8	12899.0
2025-07-25	13071.2	13110.5	12889.6	12925.9

Source: NSE

NIFTY MIDCAP SELECT index ended the week with another loss of 1.99%, extending last week’s losses. There was significant weakness in select stocks. Indus Towers fell 12% on lackluster earnings. Idea and Godrej Properties were the other top declines, falling 8%+ each. On the other hand, Mphasis, Colgate Palmolive, PI Industries, HDFC AMC and AU Bank gained more than 1%. Mphasis was the best performing stock with gains of 5.04%. On the flip side, Indus towers, Federal Bank, Godrej Properties, Lupin and Idea were bottom contributors with Indus Towers being the laggard in the index down nearly 12.31%.

The index has been under pressure in recent weeks, with three of the past five weeks witnessing a decline. There were 16 declines and only 9 advances, suggesting a bearish market breadth. Also, the midcap index underperformed the large-cap NIFTY 50 index significantly in the past two weeks.

 

NIFTY IT — Underperformance continues

Weekly Performance: -2.7%

date	open	high	low	close
2025-08-01	35118.6	35166.4	34586.9	34649.6
2025-07-31	35218.9	35589.0	34999.2	35301.6
2025-07-30	35453.1	35531.6	35258.0	35481.7
2025-07-29	35270.9	35438.8	35101.5	35373.2
2025-07-28	35521.7	35566.6	35049.9	35370.1
2025-07-25	35998.0	36271.1	35531.6	35623.8

Source: NSE

NIFTY MIDCAP SELECT index ended the week with another loss of 1.99%, extending last week’s losses. There was significant weakness in select stocks. Indus Towers fell 12% on lackluster earnings. Idea and Godrej Properties were the other top declines, falling 8%+ each. On the other hand, Mphasis, Colgate Palmolive, PI Industries, HDFC AMC and AU Bank gained more than 1%. Mphasis was the best performing stock with gains of 5.04%. On the flip side, Indus towers, Federal Bank, Godrej Properties, Lupin and Idea were bottom contributors with Indus Towers being the laggard in the index down nearly 12.31%.

The index has been under pressure in recent weeks, with three of the past five weeks witnessing a decline. There were 16 declines and only 9 advances, suggesting a bearish market breadth. Also, the midcap index underperformed the large-cap NIFTY 50 index significantly in the past two weeks.

 

NIFTY IT — Underperformance continues

Weekly Performance: -2.7%

date	open	high	low	close
2025-08-01	35118.6	35166.4	34586.9	34649.6
2025-07-31	35218.9	35589.0	34999.2	35301.6
2025-07-30	35453.1	35531.6	35258.0	35481.7
2025-07-29	35270.9	35438.8	35101.5	35373.2
2025-07-28	35521.7	35566.6	35049.9	35370.1
2025-07-25	35998.0	36271.1	35531.6	35623.8

Source: NSE

BANK NIFTY fell 1.61% for the week on broad-based losses across constituents. Kotak Bank was the major drag on weak earnings. It fell more than 6% and contributed to 60bps of drag on the index. Only HDFC Bank bucked the trend among the heavyweights and gained 0.4% for the week. In addition to Kotak Mahindra Bank, IndusInd Bank and Federal Bank accounted for most of the losses on the index with their stocks falling 4.8% to 5.8%.

That is the fourth decline in five weeks with only one week of marginal gains. While banking stocks have been among the top performers YTD, the persistent FII outflows coupled with weak earnings from some of the heavyweights (Axis and Kotak) have impacted the recent performance.

NIFTY ENERGY – Falls inline with the broader market

Weekly Performance: -1.0%

date	open	high	low	close
2025-08-01	35183.3	35283.2	34826.3	34889.0
2025-07-31	35062.9	35321.2	35010.7	35116.1
2025-07-30	35541.8	35619.9	35333.4	35422.1
2025-07-29	34940.4	35447.6	34901.8	35410.7
2025-07-28	35244.1	35515.6	34986.2	35021.6
2025-07-25	35967.8	36009.7	35214.8	35250.5

Source: NSE

The NIFTY ENERGY index ended the week -1.03% on broad-based selling pressure. Many of the stocks witnessed significant selling pressure as more than 10 stocks were down 4%+. Power equipment stocks, however, bucked the trend and witnessed significant gains. GE T&D, Power India and Suzlon were the top performers. GE T&D was up 17%+.

The breadth of the overall market was also tilted in favor of the declines as 32 components declined, against 7 advances. Over the last five weeks, the index fell in four, indicating continued selling pressure.

 

NIFTY FMCG – Benefits from sector rotation

Weekly Performance: 3.0%

date	open	high	low	close
2025-08-01	55982.0	57032.9	55974.8	56197.1
2025-07-31	54695.8	56120.4	54694.9	55812.1
2025-07-30	54906.7	55105.2	54730.6	55020.4
2025-07-29	54733.0	54943.6	54473.3	54891.1
2025-07-28	54593.8	55050.2	54510.6	54732.9
2025-07-25	55046.0	55046.0	54463.3	54579.9

Source: NSE

The NIFTY FMCG index gained by 2.96% for the week ended on 2^nd August and bounced back from the 3.41% fall during the previous week. Leading the charge on the index were stocks like Hindustan Unilever — up 5.73%, ITC, up 1.72% and VBL which ended with gains of 7.28%. Balrampur Chini and UBL were notable losers as they lost 4% to 5%.

The advance-decline ratio shows a broad-based rally in FMCG space as 13 stocks gained while 2 lost. FMCG stocks have performed well of late. A likely reason has been the relative preference for domestic themes, recent history of underperformance and a better earnings season.

NIFTY AUTO – Extends losses on broad-based selling

Weekly Performance: -1.6%

date	open	high	low	close
2025-08-01	23684.8	23737.2	23378.9	23410.9
2025-07-31	23593.2	23794.1	23397.9	23655.8
2025-07-30	23855.8	23867.0	23580.3	23745.8
2025-07-29	23663.0	23936.9	23620.9	23888.3
2025-07-28	23777.7	23981.6	23670.9	23693.0
2025-07-25	24064.7	24078.0	23675.9	23781.6

Source: NSE

NIFTY AUTO index lost 1.56% for the week ending in a 2nd consecutive week of losses. Tata Motors, M&M, Bhart Forge and Motherson Sumi were some of the largest contributors towards the index’s fall. On the other hand, Bosch and 2-wheeler stocks – TVS Motor, Hero Motor and Eicher Motors were among the top contributors that helped in limiting further declines.

This is the third time in the past five weeks that the index has slipped into red. Among the key headwinds in the past week was US tariffs on India which impacts stocks exposed to US exports. While 2-wheeler stocks bucked the trend, there was broad-based selling as evidenced in the advance decline ratio (11 losers to 4 gainers).

NIFTY PHARMA — Tariff concerns sour appetite for Pharma stocks

Weekly Performance: -2.9%

date	open	high	low	close
2025-08-01	22696.2	22705.9	21972.7	22011.7
2025-07-31	22772.9	22993.8	22701.8	22771.1
2025-07-30	23102.1	23162.4	22996.6	23073.9
2025-07-29	22741.5	23115.1	22732.6	23072.4
2025-07-28	22690.5	22908.4	22662.8	22761.2
2025-07-25	22525.6	22715.9	22440.1	22662.7

Source: NSE

NIFTY PHARMA index recorded a loss of 2.87% for the week. Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories and Divi’s Laboratories were the top drag on the index by shedding 4.08%, 4.48% and 3.85%, respectively. On the other hand, Torrent Pharmaceuticals, Laurus Labs and JB Chemicals bucked the trend and were the top gainers

The fall was driven by broad-based selling pressure. Only 3 advanced while 17 stocks fell. While Pharma stocks have been notable outperformers in the recent past, concerns over US-India tariffs likely led to profit booking.

 

NIFTY REALTY – Another heavy loss

Weekly Performance: -5.7%

date	open	high	low	close
2025-08-01	912.2	918.0	893.5	896.2
2025-07-31	905.8	915.2	903.0	912.3
2025-07-30	926.2	928.9	915.9	917.7
2025-07-29	910.8	929.3	910.4	926.5
2025-07-28	945.1	946.0	909.0	911.9
2025-07-25	957.0	966.7	947.9	950.6

Source: NSE

NIFTY REALTY index was among the worst performing indices and ended the week 5.73% lower. With respect to market breadth, none of the stocks gained as all 10 of the stocks fell. Godrej Properties, DLF & Lodha fell 5-8% and contributed to more than 40% to the index decline.

An analysis of recent performance shows that the index fell in four of the past five weeks with intense selling pressure in the past two weeks.