Weekly Market Recap: What Happened in the Week of July 28 – August 1, 2025?

Indian equity markets fell sharply on Friday, August 1, 2025, amid renewed global trade tensions and steep US tariffs. The BSE Sensex tumbled 585.67 points to close at 80,599.91, while the NSE Nifty 50 slipped 203.00 points to end at 24,565.35. The sharp decline followed the US reaffirming a 25% duty on Indian goods, triggering concerns across export-driven sectors like pharma and auto. Overall, rising trade barriers and global policy uncertainties dented investor sentiment.

Roundup of Major News of the Week

• India-UK Free Trade Agreement: India signed a landmark free trade deal with the UK aiming to double bilateral trade to $120 billion by 2030. This news, however, was offset by global uncertainties, including stalled progress in India-US trade discussions and the impending imposition of 25% US tariffs on Indian imports starting August 1, impacting near-term sentiment.
• Auto Sales: Strong auto sector sales were reported, with Maruti Suzuki's July total sales up 3.1% YoY to 181,000 units, including a 32.3% rise in exports, and SML Isuzu’s July auto sales increased 18.6% YoY, highlighting continued recovery in automotive demand.
• Developments in the IT sector: Infosys stated plans to hire 20,000 fresh graduates in 2025, bucking the trend among Indian IT majors. In contrast, Tata Consultancy Services (TCS) announced a 2% global workforce reduction (about 12,000 jobs) and HCL Technologies flagged further "workforce restructuring," signaling shifting dynamics in Indian tech employment.

Major Earnings Announcements

A flurry of Q1 (FY26) earnings announcements from major companies shaped market sentiment:

• IndusInd Bank reported a 72% year-on-year decline in net profit to ₹604 crore, down from ₹2,171 crore in Q1 FY25. Its net interest income also fell by 14% to ₹4,640 crore from ₹5,408 crore.
• Bharat Electronics Ltd (BEL) experienced a net profit increase of 23 to 25% year-on-year, reaching ₹969–970 crore compared to ₹791 crore last year. Its revenue rose by 4.6 to 5% to ₹4,439.74 crore.
• Larsen & Toubro (L&T) posted a strong 30% year-on-year increase in net profit to ₹3,617 crore, accompanied by a 16% rise in revenue to ₹63,679 crore. NTPC recorded a 9.8% rise in net profit to ₹6,010.6 crore despite a 3.02% decline in revenue to ₹47,065.36 crore.

Read more: TCS Layoffs History: From Small Exits to 12,000 Job Cuts.

Conclusion

The week ending August 1, 2025, was marked by global trade tensions, strong auto sales, mixed IT sector signals, and significant earnings results. Despite positive domestic developments like the India-UK trade deal, investor sentiment weakened due to US tariff moves and export concerns. Market volatility is expected to continue as global uncertainties and earnings trends evolve.

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