Markets Open in the Red: Nifty 50 Slides as Trade Tensions Rise

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Key highlights

Nifty 50 opened lower and fell 0.45 percent in early trade on August 7, with the index drifting below 24,550 amid wider market weakness

Selling pressure was triggered by escalating US–India trade tensions and global market volatility; sectoral losses spanned IT, pharma, FMCG, and real estate

Select blue chips like Asian Paints and Trent offered pockets of resilience, but broader sentiment remained cautious

Market participants tracked global cues and fresh tariff news, while technical analysts signaled important support zones ahead

Opening Bell: What Drove the Dip

Indian equity markets started on a softer note Thursday morning, with the Nifty 50 dropping around 0.45 percent soon after the opening bell. The index slipped beneath the 24,550 mark, following negative cues from global peers and renewed investor anxiety over international trade relations. The Sensex mirrored this downtrend, falling by about 150 points at open, as overall market breadth skewed bearish.

Tariffs Take Center Stage

The opening losses come in the backdrop of US President Donald Trump’s latest move to impose an additional 25 percent tariff on Indian exports, especially those linked to continued Russian crude oil purchases. This decision has spooked investors, worsening uncertainty for companies exporting goods and technology components to the US. India’s government officially objected to the move, labeling it as a challenge to bilateral trade, but for markets, the immediate effect was a rush to risk-off positions.

Sector Winners and Losers

Financials and banking stocks weathered the early storm better than most, with Bank Nifty even edging marginally higher yesterday, suggesting stability in core lenders

IT, pharma, FMCG, and realty sectors led the sectoral decline, each falling between 1–2 percent as negative global cues and risk aversion set in

Blue chip standouts: Asian Paints, HDFC Life, Trent, Adani Ports, and Bharat Electronics resisted the slide, showing gains or relative strength

Losers included Wipro, Sun Pharma, Jio Financial, IndusInd Bank, and Tech Mahindra, which tumbled to fresh short-term lows

Technical View: Key Levels and Trends

Recent sessions have featured sideways action, with Nifty oscillating inside a tight 2 percent range before this morning’s breakdown. Analysts note that after breaching support near 24,830, the index is now poised to test the 24,400 zone—a critical threshold watched for a sustained close or sharp reversal.

Weak volume yesterday indicated sellers lacked conviction, but today’s fast decline signals a potential uptick in bearish momentum as uncertainty lingers

If the index closes below 24,400–24,300, technical watchers forecast a downside target closer to 24,200

Upside relief could emerge on any strong recovery above 24,785, but short-term sentiment is likely to remain cautious until stability returns

Global and Economic Cues

Asia-Pacific equity markets presented a mixed picture: Japan’s Nikkei and Hong Kong’s Hang Seng both opened in the green, but regional sentiment was muted by the ongoing tariff dispute and global monetary tightening prospects

Overnight, US equity benchmarks closed higher with the Nasdaq rallying on tech optimism, but Indian markets decoupled due to the domestic impact of US trade policy

What’s Next for Investors

The market is expected to remain volatile as traders closely monitor US–India trade negotiations and global geopolitical signals. Domestic triggers could come from upcoming Q1 earnings reports and future monetary policy outlooks. Many analysts are advising caution and suggest sticking to quality blue chips or defensive sectors until clearer trends emerge.

Conclusion

In summary, Thursday’s session kicked off on a somber note for Indian equities, with Nifty 50 down 0.45 percent amid heightened tariff tensions and a global risk-off mood. While certain stocks bucked the trend, aggressive selling in tech and consumer shares kept indices under pressure. For investors, the day’s theme is caution—with a watchful eye on key supports, macro-policy headlines, and corporate earnings.

Source: Business Standard, Times of India, The Hindu Business Line, CNBC TV18, Moneycontrol