Indian Developments
During the week ending August 1st, 2025, Indian equity markets recorded their fifth consecutive weekly decline, primarily driven by sustained foreign investor withdrawals, imposition of 25% duty on Indian exports by US, Depreciation of the Indian Rupee, which weakened by 1.2% against the U.S. Dollar Index (DXY).
The week reflected the external trade pressures, currency volatility, concerns over trade competitiveness , Export and GDP growth.
Foreign Institutional Investors (FIIs) remained the persistent net sellers offloading over ?12000 crore worth of equities during the week. On contrast , Domestic Institutional Investors (DIIs) continued to provide support through sustained capital inflows.
The rupee weakened to ?86.39/USD due to global uncertainty and strength in the dollar index.
The Nifty 50 , Nifty Midcap 150 and Nifty Small Cap 250 significantly dropped by 1.09%, 1.92% and 2.97% respectively.
Sectoral Developments
During the week ending July 25, 2025, Nifty FMCG rallied up by 2.9% reflecting the strong Q1 FY25 results with the signs of recovery in both urban and rural markets and stable demand.
On the Downside, Major laggards were- Nifty Realty that sharply declined by 5.73% vis-a-vis previous week, followed by Nifty defence ( 4.76%), Nifty Metal (3.42%), Nifty Capital Markets(3.29%) Nifty Pharma ( 2.87%), and Nifty IT ( 2.73%).
Global Developments
Tariffs and rate uncertainty dominated headlines globally. Major Indices downsurged from previous week.
U.S. stock indices—Dow Jones Industrial Average , S&P 500 —experienced notable declines of 0.74%, and 0.37% respectively driven by Mixed Fed signals on rate cuts.
In Europe, the FTSE 100 and Germany’s DAX slipped by 0.50% and 1.80% respectively amid concerns over slowing economic growth and lingering trade uncertainties across the Eurozone.
Asian indices, South Korea’s KOSPI experienced a major setback of 3.88% , Hong Kong’s Hang Seng and Shanghai Composite slipped by 0.88% and 0.37% respectively amid tariff tensions between US and China , concerns over slowing economic growth
Other Markets:
Source: www.nseindices.com; google finance, MCX Gold Prices; www.rbi.org.in; Morningstar and tradingeconomics.com, ccilindia.com, Economic times
Data for week ended on August 1st , 2025.
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