Indian equity benchmarks Nifty and Sensex opened lower on August 1, 2025, as fresh tariff hikes by the U.S. under Donald Trump dampened global investor sentiment. The Sensex slipped 156 points to 81,029.50, while the Nifty dropped 48 points to 24,720.05, reflecting a cautious start to the new month.

Market anxiety intensified after Trump unexpectedly hiked import duties on Canadian goods to 35% from 25%, with reports suggesting modified reciprocal tariffs will now apply to 70 nations. This surprise geopolitical move has injected fresh volatility into global equity markets.

Hindustan Unilever (HUL) led the gainers, jumping 4% on the back of strong Q1 FY26 earnings, helping lift the FMCG index by 1.36%, making it the day’s top-performing sector. Other notable gainers included Maruti Suzuki, Tata Consumer Products, Eicher Motors, and Hero MotoCorp.

Sectoral performance was mixed, with a clear bearish tilt. Nifty Metal dropped 1.02%, followed by losses in IT (-0.77%), PSU Bank (-0.53%), and Oil & Gas (-0.44%). Broader indices like Auto, Bank, Consumer Durables, Private Bank, Midcap 100, and Smallcap 100 also edged lower. Nifty Media managed to gain 0.40%, while Energy, Infra, Realty, and Pharma indices stayed flat.

Among individual stocks:

Maruti Suzuki rose over 1% after posting an 8% YoY revenue growth to ₹38,414 crore and a 2% increase in net profit to ₹3,712 crore in Q1 FY26. Jefferies raised its target to ₹14,750, maintaining a Buy rating.

Swiggy shares fell 3% despite brokerage upgrades, as its Q1 FY26 net loss widened 96% YoY to ₹1,197 crore.

Eicher Motors gained over 2% following a 9% rise in consolidated profit to ₹1,205 crore. However, Morgan Stanley remained cautious, maintaining an Underweight rating, citing margin risks.

India VIX rose 2% to 11.77, indicating a slight uptick in market volatility.

Technical View:
The 24,500–24,550 zone remains crucial support for the Nifty. A sustained breakout above 24,900–25,000 is needed to trigger meaningful upside. Currently, the index faces heavy resistance near the psychological 25,000 mark, and any rally without volume support could attract fresh short positions. However, with the long-short ratio near 14%, the market is in oversold territory—raising the probability of a short-covering rally if key levels are breached convincingly.

Top Nifty Gainers:
HUL, Tata Consumer, Maruti Suzuki, Eicher Motors, Hero MotoCorp

Top Nifty Losers:
Dr Reddy's, ONGC, Cipla, Tata Steel, JSW Steel