Stock Market 31 July: Indices Fall Amid Global Trade Tensions, Smallcaps Lead the Decline

Table of Contents

Introduction: Key Highlights from the Stock Market 31 July

The Indian stock market ended on a cautious note on 31 July 2025, as benchmark indices reversed gains from the previous session. Investor sentiment took a hit following global trade tensions triggered by the U.S. decision to impose fresh tariffs on select Indian exports. The announcement sparked broad-based selling across sectors, especially in IT, metals, and midcaps.

Meanwhile, select stocks with strong earnings like Kaynes Technology and Emami bucked the trend and closed with strong gains. However, profit booking in overvalued smallcaps and a risk-off mood among foreign institutional investors added downward pressure. With global headwinds now surfacing after a strong July rally, market participants are becoming more selective in their trades.

Let’s break down the key market movements from 31 July.

How the Stock Market Moved on 31 July

The market opened in the red and extended losses throughout the day, as global cues remained weak and domestic sentiment turned risk-averse. News of tariffs imposed by the U.S. on Indian goods triggered concerns over the outlook for export-oriented companies. Defensive sectors like FMCG and healthcare showed resilience, but the broader market remained under selling pressure.

Major Index Performance

Index	Closing Level	Change	% Change
NIFTY 50	24,753.55	–101.50	–0.41%
SENSEX	81,202.52	–279.34	–0.34%
Nifty Bank	55,998.05	–152.65	–0.27%
Nifty IT	35,281.65	–200.05	–0.56%
BSE SmallCap	53,417.57	–463.91	–0.86%

Smallcap and IT indices witnessed the steepest falls, indicating a rotation away from high-beta sectors into safety.

Top Gainer Stocks – 31 July

Sagility India Ltd.

Sagility India jumped 9.98% to ₹46.62, driven by a technical breakout and high delivery volumes. Market buzz around upcoming business restructuring may have contributed to investor optimism.

Kaynes Technology

Kaynes Technology gained 9.47% to ₹6,172 after reporting better-than-expected Q1 earnings. Strong demand in the electronics manufacturing sector and upbeat guidance supported the rally.

HEG

HEG surged 7.27% to ₹573.10 after reporting margin expansion and volume growth in graphite electrodes. The company also saw improved demand from global steelmakers.

Emami

Emami rose 6.25% to ₹600.65 post strong earnings and a pick-up in rural demand. Its Q1 numbers beat street expectations on revenue and profit growth.

Schneider Electric

Schneider Electric gained 5.00% to ₹1,002.90, marking a 10-year high. Strong institutional buying and bullish technicals helped the stock outperform.

Top Loser Stocks – 31 July

Apar Industries

Apar Industries fell 7.88% to ₹8,907.50 despite reporting good results. Heavy profit booking followed a multi-week rally, leading to a sharp decline.

Hindustan Copper

Hindustan Copper declined 5.81% to ₹243.35 amid weakness in global copper prices. Export-oriented metals were particularly hit by tariff fears.

Redington

Redington dropped 5.74% to ₹250.20 as margins contracted and the company offered a weak forward outlook. IT hardware slowdown weighed on sentiment.

Aarti Industries

Aarti Industries slid 5.71% to ₹420.05 following disappointing quarterly numbers and reduced volume growth across specialty chemicals.

Birlasoft

Birlasoft fell 5.61% to ₹391.50 after management downgraded FY25 revenue guidance. Analysts expressed concerns about project delays and pricing pressure.

Gainers and Losers Summary Table

Top Gainers	%	Price (₹)	Top Losers	%	Price (₹)
1. Sagility India Ltd.	+9.98%	46.62	1. Apar Industries	–7.88%	8,907.50
2. Kaynes Technology	+9.47%	6,172	2. Hindustan Copper	–5.81%	243.35
3. HEG	+7.27%	573.10	3. Redington	–5.74%	250.20
4. Emami	+6.25%	600.65	4. Aarti Industries	–5.71%	420.05
5. Schneider Electric	+5.00%	1,002.90	5. Birlasoft	–5.61%	391.50

This table highlights the sharp divergence between earnings-driven gains and tariff-related or profit-booking-led losses.

Why Did the Stock Market Fall on 31 July?

U.S. Trade Tariff Announcement

According to multiple financial news sources, including Reuters, the United States has imposed a 25% tariff on select Indian goods like APIs (pharmaceutical ingredients), electronics, and specialty chemicals. This unexpected move spooked investors, particularly in export-heavy industries.

Weak Global Cues

Broader global markets remained under pressure as traders awaited key interest rate decisions from the U.S. Federal Reserve and the European Central Bank. Risk-off sentiment impacted investor appetite for equities.

Profit Booking in Overbought Smallcaps

After a sharp July rally, investors booked profits in smallcap and midcap stocks, which had been trading at rich valuations. This led to a broader sell-off in the broader market indices.

Earnings Disappointments

Some stocks like Redington, Birlasoft, and Aarti Industries reported weak Q1 results, dragging down their respective sectors. Investors turned cautious amid mixed earnings sentiment.

Conclusion

The Stock Market on 31 July reflected a cautious and defensive stance by investors amid global trade uncertainty and domestic valuation concerns. While select stocks outperformed on strong quarterly earnings, the broader trend leaned negative due to the surprise tariff announcement and global risk-off sentiment.

Looking ahead, markets are likely to remain volatile as they digest the impact of these trade developments. Investors should stay selective, focus on earnings quality, and maintain a balanced approach until clarity emerges on international trade policies and monetary direction from global central banks.