What is the impact of the U.S. tariff hike on Indian stocks?

The U.S. decision to double tariffs on Indian goods has intensified selling pressure across sectors, leading to a decline of over 0.6% in the Sensex and Nifty indices on Friday.

How have foreign investors reacted to the market turmoil in India?

Foreign institutional investors have accelerated their selling spree, offloading nearly ₹15,900 crore in August so far, though domestic buying has provided partial support.

What is the outlook for the Indian economy amid the sustained trade tensions?

Analysts warn that prolonged tariff disputes could significantly affect India's GDP expansion in the coming quarters, as market participants remain concerned about the potential impact on the country's economic growth trajectory.

Home / Business and Economy / Indian Stocks Plunge Amid U.S. Tariff Hike and Foreign Investor Exodus

Indian Stocks Plunge Amid U.S. Tariff Hike and Foreign Investor Exodus

8 Aug

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Summary

Sensex and Nifty indices drop over 0.6% on Friday
Trump doubles tariffs on Indian goods, adding to selling pressure
Foreign investors offload ₹15,900 crore in August so far

Indian Stocks Plunge Amid U.S. Tariff Hike and Foreign Investor Exodus

On Friday, August 8th, 2025, Indian stock markets continued their downward trajectory, with the benchmark Sensex index dropping 492.69 points to 80,130.57 and the Nifty falling 146.55 points to 24,449.60 as of 1.16 PM. The indices lost 0.61% and 0.60% respectively, extending the negative momentum triggered by fresh U.S. tariff threats and persistent foreign institutional investor (FII) outflows.

President Trump's decision last week to double tariffs on Indian goods to 50%, with an additional 25% levy effective August 27th, has intensified selling pressure across sectors. FIIs have accelerated their selling spree, offloading nearly ₹5,000 crore on Thursday alone and over ₹15,900 crore in August so far, though domestic institutional investor buying has provided partial support.

The broader market has also underperformed, with the Nifty Midcap 100 index falling 0.99% to 56,374.40. Sectoral indices showed a mixed performance, with the Nifty Bank index declining 0.75% and the Nifty Financial Services index dropping 0.69%.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.