Sensex Crashes Over 600 Points: The Indian stock market continued its downward slide on August 8, with the Sensex plunging over 600 points intraday to hit 79,989.50, while the Nifty 50 dropped nearly 0.80 per cent to 24,402, marking its sixth consecutive week of losses. The selling pressure was broad-based, with the BSE Midcap index falling 1 per cent and the Smallcap index slipping around 0.5 per cent. By late morning, the Sensex was still down 516 points at 80,108, and the Nifty was lower by 153 points at 24,443, signaling persistent weakness in market sentiment.
Several factors have contributed to this sustained decline. One of the primary reasons is the uncertainty triggered by US President Donald Trump’s imposition of a steep 50 per cent tariff on Indian imports. While analysts initially believed the impact would be limited to export-focused sectors like textiles and gems and jewellery, concerns over Trump’s unpredictable policy stance have dampened market confidence. Hopes of tariff cuts after negotiations have faded, as Trump has made it clear that talks will remain stalled until the dispute is resolved, raising fears of prolonged trade tensions.
Investors are also worried that Trump’s aggressive stance could puncture India’s growth story. If India retaliates with its own measures, the chances of securing a favorable trade agreement with the world’s largest economy may diminish further. Compared to rivals such as Bangladesh and Vietnam, which face lower tariffs, India now appears less competitive. Bloomberg Economics estimates that the cumulative impact of tariffs could slash exports to the US by up to 60 per cent and reduce GDP growth by about 1 per cent, with brokerage firm JM Financial noting that such high tariffs make exports to the US economically unviable.
Adding to the pressure is a lackluster corporate earnings season. Q1 FY26 results have been underwhelming, failing to provide the boost investors were hoping for. Expectations of a strong earnings recovery in the second half of the year have weakened, as the tariff shock could delay any meaningful revival. Technical indicators also reflect weakness, with Nifty continuing to make lower lows and trading below the crucial 24,500 support level, signaling the potential for further downside.
Heavy foreign portfolio investor (FPI) outflows are another major drag. After dumping ₹47,667 crore worth of stocks in July, FPIs have already sold over ₹15,950 crore in August. This relentless selling, driven by high valuations and weak sentiment, has weighed heavily on the market. While domestic institutional investors (DIIs) are stepping in with strong buying, supported by robust mutual fund inflows, their efforts are only preventing a steeper crash rather than reversing the trend.
With global uncertainty, trade tensions, muted earnings, and persistent FPI selling combining to keep the market under pressure, traders and investors remain cautious. Technical analysts warn that unless the Nifty can reclaim levels above 24,525, further corrections toward 24,415 or even 24,125 remain possible. Until there is clarity on trade negotiations and earnings momentum, the Indian stock market may struggle to find solid footing, and volatility could remain high in the coming weeks