Stock Market Highlights: Sensex, Nifty Log First Monthly Loss Since February Over Trump Tariff Tensions

Indian stock markets snapped a four-month rally to end July in losses as simmering trade tensions with the US triggered a risk-off sentiment and caused a flight of foreign capital. Both the Nifty 50 and BSE Sensex shed 2.9% this month.

The Nifty settled 86.7 points or 0.35% lower at 24,768.35 on Thursday, when monthly futures contracts expired. The BSE Sensex lost 296.28 points or 0.36% to close at 81,185.58.

Of the 50 stocks on the blue-chip Nifty, 37 declined. The market capitalisation fell by nearly Rs 81,000 crore.

Foreign investors have pulled Rs 17,578 crore out of Indian equities in July, as per NSDL data.

Thursday saw high volatility for the large-cap indices with the Sensex swinging as much as 1,000 points between session's high and low.

A day earlier, Trump announced a 25% minimum tariff on Indian exports as the two countries failed to reach a trade deal by the Aug. 1 deadline. That rate is far higher than Asian peers like Vietnam, Indonesia and South Korea.