Market News Roundup

Market News Roundup

1. Indian Markets Tumble Amid Global Pressures

Sensex plunged 765 points (≈0.95%) to settle at 79,857.79, while Nifty 50 dropped 233 points (≈0.95%) to close at 24,363.30—a three-month low.

This marks the sixth consecutive weekly loss, driven by export-crushing U.S. tariffs, persistent overseas selling, and underwhelming Q1 corporate earnings.

2. India–U.S. Trade Tensions Escalate

President Trump has imposed 50% tariffs on Indian imports, citing India’s continued purchases of Russian oil, and has halted further trade negotiations until the issue is resolved.

The Indian government unveiled a three-pronged mitigation strategy: extending support to affected exporters, diversifying trade routes, and strengthening domestic consumption.

3. MSCI Index Shuffle to Attract Inflows

Starting August 26, MSCI will add Swiggy, Vishal Mega Mart, Hitachi Energy India, and Waaree Energies to its Global Standard Index, removing Sona BLW Precision and Thermax.

Passive fund inflows are expected to favor these inclusions, potentially steering about $1 billion into the newly added names (e.g., Swiggy ≈ $289 million).

4. RBI Intervenes to Support the Rupee

India’s foreign exchange reserves took their steepest dip in 2025, as the RBI sold dollars to wick off depreciation pressure on the rupee amid intensifying trade-induced volatility.

5. Global Markets Mixed—Cautious Optimism Amid Volatility

Global equities registered gains as hopes grew for further Fed rate cuts, while gold prices surged to record highs, underscoring investor hedging behavior.

Market Implications & Themes

Investor Sentiment: Tremors from tariffs and earnings murk are dragging down Indian equities, with cautious investor mood dominating.

Policy & Currency: Aggressive stimulus (via the RBI and exporter support packages) hints at government determination to stabilize markets.

Passive Fund Flows: MSCI’s index shake-up spells opportunity for select Indian companies amid portfolio reallocations.

Global Trends: With macroeconomic friction intensifying globally, markets remain sensitive to policy and geopolitical shifts.