US Sanctions Slam Indian Markets; FMCG Sector Bucks Trend
Indian stock markets concluded trading slightly in the red on Thursday, July 31, 2025, succumbing to pressure from newly imposed US tariffs on Indian goods and penalties levied for the purchase of Russian oil. The twin blows dealt a significant setback to investor sentiment.
Despite an initial attempt at recovery mid-session, the indices ultimately failed to hold gains. Concerns over the escalating trade conflict with the US overshadowed positive developments in other sectors.
The Fast-Moving Consumer Goods (FMCG) sector emerged as a bright spot, exhibiting resilience amidst the overall market downturn. Shares in this sector registered notable gains.
In contrast, the oil & gas and telecom sectors bore the brunt of the negative sentiment, witnessing a decline in their respective share prices. These sectors are particularly vulnerable to geopolitical shifts.
The day’s trading highlights the increasing interconnectedness of the global economy and the vulnerability of emerging markets to shifts in US trade policy. The impact of these sanctions on everyday Indian consumers, particularly through increased prices, remains a key concern going forward.
