MARKET ANALYSIS (NIFTY 50) AS ON 06 AUGUST'2025

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 Market Analysis – 06 August 2025

India–US Trade Tensions Escalate

In a major geopolitical development, former U.S. President Donald Trump has imposed an additional 25% tariff on Indian goods, citing India’s continued import of Russian oil. This move has significantly escalated trade tensions between the two nations, adding pressure on India’s export-driven sectors and overall investor sentiment. The development has injected fresh volatility into the market and raised concerns about potential retaliatory measures.

Monetary Policy Outcome – No Change in Repo Rate

The Monetary Policy Committee (MPC) has announced its decision to keep the repo rate unchanged, signaling a cautious stance amid global and domestic uncertainties. The decision reflects the RBI’s concern over weak economic indicators and persistent inflationary pressures. The unchanged rate also indicates a continuation of the current bearish trend, as the market had no fresh positive cues from the policy.

FIIs Maintain Bearish Outlook

Foreign Institutional Investors (FIIs) continue to be net sellers, particularly in the derivatives segment, where participation remains notably low. The persistent outflows from FIIs reflect their risk-averse approach and lack of confidence in near-term Indian equity performance, possibly due to geopolitical and macroeconomic headwinds.

Technical Outlook – Nifty 50 at Crucial Support Zone

The Nifty 50 index is currently trading near a very strong technical support level. Any decisive breakdown below this zone could trigger panic selling and lead to increased volatility across broader indices. Market participants are advised to exercise caution and closely monitor key support levels and institutional behavior for confirmation of trend direction.

Disclaimer

This market analysis is for informational and educational purposes only and should not be considered as investment advice. Readers are advised to conduct their own research or consult a certified financial advisor before making any investment decisions. The author is not responsible for any financial losses or decisions made based on the content of this document.

Location: Ludhiana, Punjab, India

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