Stock Market 8 August: Markets Slide Over 1% Amid Tariff Shock and Relentless FII Sell-Off

Table of Contents

Introduction: A Rough Day for Dalal Street

The Stock Market 8 August session brought heavy selling pressure across the board, with global developments dictating investor sentiment. Benchmarks faced a steep sell-off as the Nifty 50 slipped by 250.30 points (-1.02%) to close at 24,345.85, while the Sensex lost 787.65 points (-0.98%), ending the day at 79,835.61.

This sharp fall was triggered by an unexpected geopolitical jolt — U.S. President Trump’s announcement of a 50% tariff on Indian exports. Combined with ongoing foreign institutional investor (FII) selling, lacklustre corporate earnings, and a strengthening U.S. dollar, the day’s trade reflected heightened caution among both institutional and retail participants.

What stood out was the broad-based nature of the decline. Key sectors like banking, IT, auto ancillaries, and chemicals took a hit, while select midcaps and defensives showed resilience. The market mood was further dampened by global cues as Asian and European markets also traded in the red.

Major Index Performance – 8 August 2025

Index	Closing Level	Change	% Change
Nifty 50	24,345.85	-250.30	-1.02%
Sensex	79,835.61	-787.65	-0.98%
Nifty Bank	54,925.45	-595.70	-1.07%
Nifty IT	34,395.60	-331.20	-0.95%
BSE SmallCap	51,501.81	-634.52	-1.22%

The decline was pronounced in the Bank Nifty, which fell by nearly 600 points, and in SmallCaps, which slipped 1.22% amid broad profit booking. Nifty IT also suffered as global tech sentiment weakened.

Top Gainer Stocks – 8 August

Despite the market weakness, a few stocks bucked the trend and delivered strong gains:

Global Health (+7.25%) – Surged after an earnings beat, touching a fresh 52-week high. Strong revenue growth and margin expansion boosted investor confidence.
Kalpataru Projects (+6.35%) – Rose on the back of robust margin growth in Q1, supported by strong order inflows.
Sai Life Sciences (+4.59%) – Extended gains after posting a 10-year high revenue performance.
General Insurance Corporation (+4.14%) – Climbed after reporting better-than-expected Q1 results.
Bank of Maharashtra (+3.9%) – Gained as quarterly updates reflected steady loan growth and asset quality stability.

Top Loser Stocks – 8 August

On the flip side, several counters saw heavy sell-offs:

PG Electroplast (-20.09%) – Plunged after a sharp earnings miss and weaker-than-expected forward guidance.
Kalyan Jewellers (-10.64%) – Despite an earnings beat, profit booking and sector-wide pressure on jewellery exporters weighed heavily.
Titagarh Rail Systems (-5.97%) – Slipped post-results as order book commentary disappointed the market.
The Ramco Cements (-5.73%) – Declined on weak quarterly numbers and margin compression.
Biocon (-5.72%) – Dropped after missing market expectations in Q1 earnings.

Gainers and Losers Summary Table

Top Gainers	% Change	Top Losers	% Change
Global Health	+7.25%	PG Electroplast	-20.09%
Kalpataru Projects	+6.35%	Kalyan Jewellers	-10.64%
Sai Life Sciences	+4.59%	Titagarh Rail Systems	-5.97%
General Insurance Corp	+4.14%	The Ramco Cements	-5.73%
Bank of Maharashtra	+3.9%	Biocon	-5.72%

Why Did the Stock Market Fall on 8 August?

1. Trump’s 50% Tariff Shock

The biggest trigger for today’s decline was U.S. President Trump’s move to double tariffs on Indian exports from 25% to 50%. This unprecedented escalation targeted sectors such as textiles, gems and jewellery, chemicals, seafood, and auto ancillaries. Analysts warned that India’s seafood industry alone could face a ₹24,000 crore revenue loss. Textile exporters are already halting production for U.S. orders, citing severe competitiveness issues against Bangladesh and Vietnam.

2. Relentless FII Selling

FIIs continued their 10-day selling streak, pulling ₹4,997 crore from Indian equities on August 7. With August outflows already exceeding ₹15,950 crore, market watchers see sustained selling ahead, especially given global risk-off sentiment.

3. Weak Q1 Earnings

Q1 results have failed to provide a cushion. The Nifty IT index is down 10% over the past month, and banking earnings have been muted. The top nine private banks reported just 2.7% YoY profit growth in Q1, signalling slow credit demand.

4. Rising U.S. Dollar Pressure

The U.S. dollar index breached the 100 mark last week — its sharpest gain in three years — increasing foreign debt costs and accelerating capital outflows from emerging markets like India.

5. Technical Fragility

While Nifty found some support near 24,590, technical analysts warn that any sustained break below 24,548 could open doors to deeper corrections. Short-term recoveries are possible, but sentiment remains cautious.

Conclusion: Turbulence Ahead for Indian Equities

The Stock Market 8 August serves as a reminder that global geopolitical shocks can ripple quickly through domestic markets. With U.S. tariffs now threatening multiple Indian export sectors, FIIs on a selling spree, and corporate earnings under pressure, the short-term trend remains fragile.

Domestic institutional inflows may continue to act as a buffer against a full-blown crash, but volatility is likely to stay elevated. Investors may consider a cautious, stock-specific approach, focusing on fundamentally strong companies and avoiding overexposure to tariff-sensitive sectors until there’s more clarity on trade relations.