Sensex and Nifty News: Market Rebounds from Day’s Low Despite Trump’s Tariff Shock

Market Performance

The Indian stock market staged a remarkable rebound on Thursday, July 31, following a sharp decline in early trading hours.

• Sensex closed at 81,185.58, down 296 points or 0.36%
• Nifty 50 settled at 24,768.35, lower by 87 points or 0.35%
• Intraday low for Sensex: 80,695.15 (down 786.71 points)
• Nifty recovered to reclaim the 24,750 level
• BSE Midcap Index: declined 0.70%
• BSE Smallcap Index: dropped 0.85%

Despite the negative closing, both indices bounced back nearly 500 points from their day’s lows, reflecting improving market sentiment.

Main News: Trump’s Tariff Impact and Market Sentiment

The rebound followed the announcement of a 25% tariff by U.S. President Donald Trump on select Indian exports. These tariffs, set to take effect from August 1, are expected to impact:

• Textiles
• Auto components
• Leather goods
• Gems and jewellery
• Select food items

However, the broader Indian market appears unfazed. Market participants believe that India’s exports to the U.S. account for only 2% of GDP, limiting the overall macroeconomic impact.

The sentiment turned positive on hopes that the tariffs are part of a negotiation strategy, and final duties may be lower.

Company Details: Top Gainers Support Market Recovery

A few heavyweight stocks led the market rebound:

• Hindustan Unilever: rose up to 4% intraday
• Jio Financial Services: among key gainers
• ETERNAL, Kotak Mahindra Bank, and JSW Steel: also supported the rally

These stocks helped the indices pull back from steep losses witnessed during morning trading.

Key Drivers Behind the Recovery

1. Ongoing Trade Dialogue Between India and U.S.

Investor optimism improved as Trump left the door open for trade negotiations, despite announcing the penalty.

2. Global Crude Oil Price Dip

• Brent Crude dropped 0.19% to $73.10 per barrel
• Lower crude prices benefit India, reducing import costs and inflation pressure

3. Positive Global Market Cues

• Japan’s Nikkei 225 gained nearly 1.5%
• U.S. equity futures stayed positive during Indian trading hours, boosting confidence

4. Rupee Recovery

• The rupee appreciated by 14 paise, ending at 87.66 per USD
• This came after a steep intraday drop of 89 paise, the largest in over three years

5. Hope for U.S. Fed Rate Cuts

• Although the U.S. Fed held rates steady, internal divisions hint at potential rate easing
• Speculation of a September rate cut added to global risk-on sentiment

Summary of the Article

In today’s Sensex and Nifty News, the Indian equity market showed resilience amid geopolitical tensions and trade uncertainties. While the indices closed marginally lower, a 500-point intraday rebound highlighted investors' belief in the economy’s strength.

Multiple factors such as decline in crude oil, recovery in the rupee, and continuing trade discussions between India and the U.S. contributed to easing fears and reviving buying interest.

As the focus gradually shifts back to corporate earnings and macro growth, the market's sharp bounce from the lows underscores a cautious but optimistic outlook in the near term.