TLDR
Market Recap: August 7, 2025
Indian equities extended losses as U.S. tariff escalation and sustained foreign selling pressured sentiment. The BSE Sensex fell 765.31 points to close at 79,857.79 (–0.95%), while the NSE Nifty 50 declined 233.40 points to 24,363.30 (–0.95%). Selling was broad-based, with IT, pharma, and telecom among the worst hit.
Midcaps and smallcaps underperformed, with the Nifty Midcap 100 down 1.1% and the Nifty Smallcap 100 lower by 0.9%. The India VIX rose 3.2% to 12.12, indicating heightened risk aversion. FIIs were net sellers for the 14th consecutive session, partially offset by strong DII buying. Weak Q1 results in key sectors compounded the bearish tone, while tariff-sensitive stocks saw heavy liquidation.
Key Drivers :
Tariff escalation fears: President Trump’s move to raise U.S. tariffs on Indian goods to 50% rattled export-linked sectors.
Persistent FII outflows: Foreign investors sold ₹4,997 crore in equities, continuing the selling streak.
Sectoral drag: IT, pharma, and telecom led losses, while metals and FMCG showed relative resilience.
Midcap & smallcap pressure: Broader markets underperformed amid increased risk-off sentiment.
Volatility spike: India VIX climbed above 12, signaling a shift toward caution.
Today’s Top Stories:
Aditya Infotech surges ~50%: Biggest IPO listing gain of 2025.
Kalyan Jewellers drops 9.4%: Revenue growth offset by margin contraction.
Bharti Airtel falls ~4.2%: Promoter block deal worth ₹11,227 crore hits sentiment.
Gland Pharma jumps 6.4%: Brokerage upgrades drive rally.
Container Corp declines 3.8%: Heavy selling pressure in midcap logistics.
TOP STORIES
1. Aditya Infotech surges ~50%: Biggest IPO listing gain of 2025
DALL-E
Record debut performance: The stock closed nearly 50% higher than its issue price, marking the strongest listing of 2025 so far. Robust subscription demand and bullish sentiment around the company’s sector positioning fuelled the debut rally.
Analysts highlight growth potential: Brokerages cite the company’s scalable model and sector tailwinds as drivers of sustained interest. Strong fundamentals could help it maintain momentum beyond the initial listing euphoria.
IPO market benchmark: This performance raises the bar for other IPOs in the pipeline for the rest of the year. It also reinforces the view that quality companies can still attract premium valuations despite market volatility.
What’s your outlook on Aditya Infotech after its record debut?
2. Kalyan Jewellers drops 9.4% despite 31% YoY revenue growth
DALL-E
Strong sales, weaker margins: The jeweller reported a 31% YoY revenue jump in Q1, boosted by festive demand and store network growth. Gross margins, however, contracted by 60 basis points to 13.6% due to a higher mix of lower-margin franchised outlets.
Analysts remain optimistic: Brokerages such as Citi and Motilal Oswal retained their buy ratings with targets up to ₹700. They believe robust demand trends will eventually offset short-term profitability concerns.
Short-term sentiment hit: The steep one-day decline highlights market sensitivity to margin pressures in consumer-facing sectors. Investors will be watching for margin improvement in the coming quarters.
Is Kalyan Jewellers’ margin squeeze a temporary setback?
3. Bharti Airtel falls ~4.2% after ₹11,227 crore promoter block deal
DALL-E
Large stake sale at discount: Promoter entity Bharti Telecom sold a 2.5% stake via block deals at ₹1,390 per share, raising ₹11,227 crore. The sale price represented a discount to the prior day’s close, sparking immediate selling pressure.
Heavy trading volumes: The stock fell over 5% intraday before recovering slightly, closing down 4.2%. Institutional participation was high as the block deal was absorbed by a mix of domestic and global funds.
Promoter statement: Management described the sale as “portfolio rebalancing” with no change in long-term business outlook. Analysts will monitor for any follow-up stake actions in the months ahead.
Does the Bharti Airtel block deal change your outlook?
4. Gland Pharma jumps 6.4% on brokerage upgrades
DALL-E
Ratings and targets raised: Multiple brokerages upgraded the stock and lifted target prices after improved operating margins and stronger performance from its European subsidiary, Cenexi. This positive reassessment reflects growing confidence in management’s turnaround plan.
Share price reaction: The stock surged 6.4% to ₹2,090.20, closing near the session’s high. Heavy buying interest came from institutional investors, signaling conviction in the recovery story.
Outlook improving: Analysts expect earnings momentum to pick up in the second half of FY25, aided by new product launches and efficiency gains. The company’s focus on complex injectables is seen as a long-term growth driver.
Is Gland Pharma’s rally justified after the upgrades?
5. Container Corp declines 3.8% on heavy selling
DALL-E
Sharp midcap decline: Shares fell 3.8% to ₹557, ranking among the day’s top midcap losers. The drop was accompanied by a spike in trading volumes, indicating institutional liquidation.
Sectoral headwinds: Weak freight growth and rising competition in the logistics sector have weighed on sentiment. Market participants remain concerned about pricing pressures and capacity utilization rates.
Investor watchpoints: While the company retains a strong market position, near-term performance may be volatile. Analysts suggest watching for upcoming volume data to gauge the impact on earnings.
Is Container Corp’s weakness a buying opportunity?
GYAANI HOT TAKES
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