MARKET ANALYSIS (NIFTY 50) AS ON 01 AUGUST' 2025

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 Market Analysis as on 01 August 2025

Foreign Portfolio Investors (FPI)/Foreign Institutional Investors (FII) remained net sellers in the Indian equity market during July 2025, with total outflows of approximately ₹17,700 crore. This sustained selling pressure indicates a clear preference for the "sell-on-rise" strategy, where any upward movement in the market is being used as an exit opportunity rather than a sign of strength.

📉 Bearish Sentiment Prevails:

The broader market continues to reflect bearish undertones. The Nifty 50 is currently trading near a critical support zone, and any decisive breakdown below this level could trigger panic selling. The lack of strong institutional support combined with weak global cues is increasing downside vulnerability.

🌏 FPI Shift Toward China:

Interestingly, FPIs have been observed to be more active in the Chinese equity markets recently. Rising valuations, domestic political uncertainties, and delayed trade agreements have likely contributed to their reduced appetite for Indian equities.

🇮🇳🇺🇸 India–US Trade Tariff Deal Pending:

The much-anticipated India–US trade tariff negotiations remain unresolved. The uncertainty surrounding tariff decisions continues to hang over market sentiment, especially for sectors directly exposed to international trade such as pharma, auto, and IT services.

🔍 Key Insights:

- FPI net outflows (July): ₹17,700 crore
- Sentiment: Bearish with risk of deeper correction if support breaks
- FPIs more active in: China vs India
- Risk Factors: Global equity volatility, US Fed commentary, geopolitical developments
- Domestic Trigger: Awaited outcome of India–US tariff deal

📌 Disclaimer:

This analysis is for educational purposes only and should not be considered as investment advice. Please consult your financial advisor before making any trading or investment decisions.

Location: Ludhiana, Punjab, India

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