India's BSE Sensex trimmed steep early losses to close about 0.4% down at 81,185.6 on the last trading day of July, following US President Donald Trump's surprise announcement of a 25% tariff on Indian exports plus an unspecified penalty for buying Russian crude oil and military equipment. India now faces one of the steepest US tariff regimes, representing a significant setback in bilateral relations, particularly after earlier signs pointed to an imminent trade deal. All major sectors, except FMCG, came under pressure, with pharma, metal, and energy emerging as the top losers. The Fed's cautious tone, which dimmed hopes of policy easing in September, also pressured sentiment. Among single stocks, Tata Steel, Sun Pharma, NTPC, Adani Ports, Reliance and Asian Paints were the biggest laggards, shedding between 1% and nearly 3%. For the month, the index posted a 2.9% decline, marking the first loss in five weeks.