India’s financial markets wrapped up a turbulent week on August 1, 2025, with benchmark indices posting their fifth consecutive weekly decline—the longest losing streak since August 2023. The downturn was fueled by a combination of weak earnings, foreign investor outflows, and escalating trade tensions, particularly with the United States. Meanwhile, the Indian rupee weakened sharply, closing at its lowest level this fiscal year.
Market Snapshot
| Index | Weekly Change | Closing Value |
|---|---|---|
| Sensex | -1.05% | 80,599.91 |
| Nifty 50 | -1.09% | 24,565.35 |
| Nifty Bank | -2.0% | 55,618 |
| Nifty Midcap | -2.0% | 56,637 |
| BSE Smallcap | -2.47% | — |
More than 35 Nifty constituents ended the week in the red, with Adani Enterprises, Kotak Mahindra Bank, Wipro, Tata Motors, and Tata Steel among the top losers.
Rupee Under Pressure
The Indian rupee fell 100 paise to close at ₹87.52 per US dollar, marking its fourth straight weekly decline. The drop was driven by:
- Strengthening US dollar
- Month-end importer demand
- Uncertainty over India-US trade negotiations
- Limited RBI intervention
What’s Driving the Decline?
- Foreign Institutional Investors (FIIs) sold equities worth ₹20,524 crore, continuing their exit for the fifth straight week
- Domestic Institutional Investors (DIIs) tried to counterbalance, buying ₹24,300 crore worth of equities
- Tariff concerns resurfaced after the US reaffirmed steep import duties on Indian goods
- Weak Q1 earnings from key sectors like IT and pharma added to investor anxiety
Sectoral Breakdown
| Sector | Weekly Performance |
|---|---|
| FMCG | +3.0% |
| Realty | -5.7% |
| Metals | -3.4% |
| PSU Banks | -3.2% |
| Media | -3.0% |
| Pharma & IT | -3% to -4.5% |
FMCG was the only sector in the green, buoyed by strong earnings from Hindustan Unilever and Varun Beverages.
Expert Take
“The market is holding a lower top formation on daily charts and a bearish candle on weekly charts. Trading below key moving averages signals continued weakness.” — Amol Athawale, VP – Technical Research, Kotak Securities
“Persistent FII outflows and tariff uncertainty have created a defensive mood among investors. Recovery hinges on RBI’s rate decision and clarity on trade talks.” — Vinod Nair, Head of Research, Geojit Financial Services
What’s Next?
Investors are now eyeing:
- RBI’s monetary policy announcement next week
- US-India trade developments
- Inflation data and earnings reports
With sentiment fragile and technical indicators flashing red, markets may remain volatile in the near term.
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