Share Market Today Update: Sensex Falls, RBI Holds Rate

The Indian stock market witnessed significant turmoil on Thursday, following the announcement of an additional 25% tariff on Indian goods by former US President Donald Trump. This new move has now brought the total US-imposed tariff on Indian exports to a steep 50%, triggering sharp reactions across financial markets.

Stock Market Reaction

The Sensex opened over 200 points lower, indicating investor concerns over the escalating trade tensions. Similarly, the Nifty also dropped more than 50 points at the opening bell. As a direct consequence of this dip, the market capitalization of companies listed on the Bombay Stock Exchange (BSE) shrank by a staggering ₹1.61 lakh crore.

The negative momentum began a day earlier when the markets closed in the red. On Wednesday, the Sensex ended at 80,543.99, down by 166.26 points or 0.21%, while the Nifty closed at 24,574.20, registering a fall of 75.35 points or 0.31%. One of the key reasons behind Wednesday’s fall was the Reserve Bank of India’s (RBI) decision to keep the repo rate unchanged.

Today’s Share Market Update (August 7, 2025)

Despite early losses, today’s market (Thursday) attempted a minor recovery in mid-session trading. As of the latest update:

Sensex hovered around 80,400, down nearly 150 points from the previous close.
Nifty remained under pressure, trading near 24,500, showing signs of volatility.

Sectors like IT, pharma, and FMCG showed some resilience, while banking and auto stocks remained under heavy selling pressure. The overall sentiment remains cautious due to global trade uncertainty and high foreign outflows.

RBI’s Monetary Policy Decision

The RBI maintained the repo rate, which is the rate at which it lends money to commercial banks, citing inflationary concerns and the need to ensure financial stability. While some market participants were hoping for a rate cut to stimulate growth amid external challenges like global trade tensions, the central bank chose caution over aggression.