Overview

• On August 7, Foreign Institutional Investors sold ₹4,997 crore of equities after the tariff escalation, then reversed 14 sessions of net selling with ₹7,437.4 crore of purchases on August 8.
• Domestic Institutional Investors invested ₹108.6 billion on August 8, their largest single-day inflow since April, helping to limit broader losses.
• The Sensex slipped below 80,000 and the Nifty fell to 24,363.30, marking three-month lows and the longest weekly losing streak since April 2020.
• July’s foreign outflows were led by $2.3 billion pulled from the IT sector and significant selling in BFSI, realty, auto and oil & gas, highlighting exporters’ exposure to US duties.
• Analysts expect range-bound trading to persist with a rotation toward domestically oriented stocks and potential tariff exemptions for pharmaceuticals.