India’s benchmark indices fell for a second straight session, dragged down by heavy losses in pharma, IT, and metal sectors after the US imposed unexpected tariffs on Canadian imports. The Nifty dropped below 24,650, and the Sensex shed over 300 points amid broad-based selling pressure, with smallcaps particularly under strain.
India’s stock markets faced sharp losses on Friday, July 31, as investor sentiment was shaken by sudden US tariff escalations. The BSE Sensex dropped by 324.56 points, or 0.40%, to 80,861.02, while the NSE Nifty 50 declined by 124.25 points, or 0.50%, to 24,644.10.
This decline marked the second consecutive session of losses, primarily triggered by a steep fall in pharma, IT, and metal stocks, as well as ongoing concerns about global trade policies. Market breadth remained weak with over 2,000 stocks declining against 1,399 advancing.
The slide followed a new directive from the United States, where President Donald Trump unexpectedly hiked import duties on Canadian goods to 35% from 25%, intensifying global trade tensions. Analysts warn that these tariffs could potentially disrupt investor risk appetite worldwide.
Sectoral Pressure
The Nifty Pharma index led the losses, falling by 2.84%, followed by Nifty IT (-1.26%), Oil & Gas (-1.05%), and Metal (-0.93%). Meanwhile, Nifty FMCG (+0.86%) and Media (+1.03%) were the only gainers. Other indices like Auto, Infra, Realty, and Midcap 100 also witnessed notable selling.
The India VIX, a volatility gauge, rose 1.65% to 11.73, reflecting increased nervousness in the market.
Top Movers
Among the top losers on the Nifty were Dr. Reddy’s Laboratories, Sun Pharma, Cipla, Tata Steel, and ONGC.
On the other hand, Hindustan Unilever (HUL) surged nearly 8%, driven by positive analyst outlooks after its Q1 FY26 results showed a 6% YoY rise in net profit to ₹2,768 crore, with revenue up 5% to ₹16,323 crore. This rally pushed HUL’s two-day gains to over 12%.
Other Notable Stocks
- PNB Housing Finance plunged over 15% after the company accepted the resignation of its MD & CEO Girish Kousgi, raising concerns about continuity in strategic leadership.
- Swiggy dropped 4%, as its Q1 FY26 net loss widened 96% YoY to ₹1,197 crore, from ₹611 crore a year ago, despite positive sentiment from international brokerages.
Also Read: Mahindra Grabs 54.2% LCV Market Share: Full Q1 FY26 Breakdown
Technical View
Nifty faced resistance near the 50-EMA around 24,950 before slipping. The index closed around 24,750, with immediate support at 24,500 and resistance at 25,000. A move above 25,000 could shift market bias to bullish, while a breach below 24,500 may intensify selling.
The Sensex, meanwhile, remained volatile and needs a decisive close above 82,050 to regain upward momentum.
Top Gainers
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