After staging a modest recovery in early trade, Indian benchmark indices succumbed to selling pressure and closed lower. Persistent concerns over the 50 % U.S. tariffs on Indian goods and continued foreign institutional investor (FII) shorting activity kept sentiment fragile. Domestic institutional investors (DIIs) remained net buyers, but their support was insufficient to offset foreign selling. Mid- and small‑cap stocks underperformed amid risk aversion. FMCG stocks were the standout performers thanks to expectations of GST rate rationalisation and resilient consumer demand, while auto and IT counters dragged.
Top indices
| Index | 29 Aug 2025 Close | Change (pts) | Change (%) |
|---|---|---|---|
| Nifty 50 | 24 426.85 | –74.05 | –0.30 % |
| S&P BSE Sensex | 79 809.65 | –270.92 | –0.34 % |
| Nifty Bank | ~53 655* | approx –0.3 % | –0.3 % |
*approximate closing level from available data
Sectoral performance
| Nifty sector index | Direction | Notes/Change |
|---|---|---|
| FMCG | ↑ up 0.8 % | Benefited from GST‑rate rationalisation hopes |
| Private Bank | ↑ up ~0.8 % | Largest sectoral gainer; some buying in select banks |
| Media | ↑ up ~0.35 % | Minor gains |
| Metal | ↑ up ~0.3 % | Rebounded marginally |
| Pharma | ↑ | Mild gains |
| Realty | ↓ down ~1.0 % | Worst performer amid rate‑sensitive concerns |
| IT | ↓ down ~0.5 % | Weak global tech cues |
| Auto | ↓ down ~2 % | Hit by tariff worries and profit taking |
| Mid‑ & Small‑Cap | ↓ down ~1 % | Broader market under pressure |
Key statistics
| Indicator | Data / Trend |
|---|---|
| FII flows | Net sellers (~₹3 856 cr); increased short positions on concerns over U.S. tariffs |
| DII flows | Net buyers (~₹6 920 cr), helping cushion declines |
| India VIX (volatility index) | Down roughly 4 %, reflecting lower near‑term volatility expectations |
| Nifty OI (derivatives) | Highest call open interest at 24 800; highest put OI at 24 500, signalling key resistance/support levels |
| Rupee | Hovered near ₹88.2 per dollar with mild weakness |
Top Gainers (Nifty 50)
| Top gainers | Approx. % gain | Rationale |
|---|---|---|
| Shriram Finance | +2.3 % | Continued buying momentum; benefitted from stable credit outlook |
| ITC | +2.1 % | Hopes of GST rationalisation; defensive demand |
| Trent | +1.5 % | GST cut on footwear and garments expected to boost demand |
| Bharat Electronics | +1.3 % | Strong order book expectations |
| Larsen & Toubro / Asian Paints | +1 % | Infrastructure spending optimism (L&T); consumer demand strength (AP) |
Top Losers (Nifty 50 )
| Top losers | Approx. % loss | Rationale |
| Mahindra & Mahindra (M&M) | –3.0 % | Auto index weakness; tariff fears |
| Infosys | –2 % | Soft outlook for IT spending in U.S. and Europe |
| Apollo Hospitals | –1.5 % | Profit‑taking after recent rally |
| Adani Enterprises / JSW Steel | –1 % | Tariff‐related jitters (AE) and soft commodity prices (JSW) |
| Reliance Industries | –1.2 % | Shares dipped as investors digested AGM announcements |
What moved the market
- US tariffs and FII short positions – The market remained wary of the 50 % tariff on Indian goods announced by the U.S., fueling fears of reduced export competitiveness. This triggered heavy FII selling and kept risk appetite in check despite supportive domestic flows.
- Corporate news and earnings – Reliance Industries’ AGM announcements (detailed below) kept the stock volatile. Auto stocks came under pressure on concerns that tariffs could hurt exports. FMCG stocks rallied on expectations of tax rationalisation.
- Technical factors – Both Nifty and Sensex formed bearish candles in prior sessions, indicating continued selling pressure. Nifty broke key supports around 24 670 and hovered near 24 426; Bank Nifty traded below major moving averages, adding to caution.
- Macro and policy cues – Despite DIIs providing liquidity support, investors remained sceptical due to high valuations and global headwinds. Supportive measures in the domestic Budget, potential rate cuts and upcoming GST rationalisation offered a cushion but were insufficient to turn sentiment decisively positive.
Global cues
- US markets closed at record highs (S&P 500 and Dow) after results from major tech firms confirmed robust spending on AI infrastructure. However, caution emerged ahead of the Federal Reserve’s preferred inflation gauge release.
- Asian markets were mixed: Hong Kong’s Hang Seng and Taiwan indices gained, while Japan’s Nikkei and South Korea’s KOSPI weakened. Concerns over the US–India tariff spat and Chinese economic data kept traders on edge.
- Commodities – Gold prices held near a month‑high on expectations of a U.S. rate cut in September; oil prices drifted lower amid worries about demand and inventories.
- Currencies – The dollar index weakened slightly, supporting emerging‑market currencies. The rupee still depreciated mildly due to trade deficit concerns.
Stocks to watch
| Stock | Why watch? |
|---|---|
| Reliance Industries (RIL) | AGM revealed plans to list Jio Platforms by the first half of 2026, a new cloud partnership with Google, an AI joint venture with Meta to provide enterprise AI solutions, and a ₹75 000 cr investment in clean energy and chemicals. The stock may see volatility as investors assess the growth vs. capital‑expenditure trade‑off. |
| Shriram Finance | Top gainer; continued momentum could attract short‑term traders. Watch for any announcements on asset quality or lending rates. |
| ITC | Beneficiary of possible GST cuts; considered a defensive bet when markets are choppy. |
| Trent | Benefit from lower GST on apparel and footwear; momentum may continue if consumption picks up. |
| M&M | A major laggard; further weakness in the auto index could drag the stock, but oversold conditions may attract bargain hunters. |
| Infosys / TCS / HCL Tech | IT stocks under pressure; global tech spending and currency movements will influence direction. |
| Yes Bank | Gained after Japanese giant Sumitomo Mitsui announced a ₹16 000 cr capital infusion through debt/equity; may see follow‑through buying. |
| Vikran Engineering | IPO subscribed over 5×; listing expected next week—watch for volatility on debut. |
Corporate updates
- Reliance Industries AGM – Chairman Mukesh Ambani announced that Jio Platforms will seek an IPO by the first half of 2026, with the telecom arm already surpassing 500 million users. Partnerships were unveiled with Google (a Jamnagar cloud region powered by green energy) and Meta (enterprise AI solutions using open‑source models). Reliance Retail aims to maintain over 20 % CAGR in revenues for the next three years. The group will invest ₹75 000 cr in new oil‑to‑chemicals projects and expand green‑energy initiatives.
- GST rationalisation – Expectations of reduced GST rates on FMCG products buoyed stocks like ITC and Trent.
- Yes Bank capital infusion – Japanese lender Sumitomo Mitsui Banking Corp announced plans to pump ₹16 000 cr into Yes Bank via a mix of equity and debt, boosting the stock.
- Vikran Engineering IPO – Final day of subscription saw the issue subscribed over 5×; listing next week is likely to be keenly watched.
- Miscellaneous – Several U.S. tech firms’ results (notably Nvidia) confirmed robust AI‑linked spending, influencing global tech sentiment.
Outlook for the next trading day
Tone: The broader tone is likely to remain cautious to range‑bound. Markets are oversold on the short‑term charts, so a technical pullback cannot be ruled out, especially if global cues turn supportive. However, persistent FII selling, concerns over U.S. tariffs, and high valuations may cap upside.
Technical levels
- Nifty 50:
- Support: 24 300–24 250 (previous swing lows and 200‑day EMA).
- Resistance/Pivot: 24 700 (break above could trigger short‑covering), next at 24 800 (highest call OI) and 25 000.
- S&P BSE Sensex:
- Support: 79 900–79 700.
- Resistance: 80 600 (key level for bulls); above this, 81 000 and 81 300 are the next hurdles.
- Nifty Bank:
- Support: 53 600–53 500 (confluence of 200‑day EMA and prior lows). Below this, 52 900 and 52 400 could be tested.
- Resistance: 54 500–54 600; a decisive move above 55 000 is required to confirm recovery.
Expected market tone
- Volatility likely to persist – With India VIX near multi‑week lows, any surprise on tariffs or global data could trigger swings.
- Watch global cues – U.S. inflation data and Federal Reserve commentary will influence risk appetite. Asian market momentum will provide early direction.
- Sector rotation – Defensive sectors like FMCG may continue to outperform, while rate‑sensitive sectors (auto, realty) might lag. Traders should maintain strict stop‑losses and avoid aggressive positions until indices reclaim critical resistance levels.
Bottom line: The market remains in a short‑term downtrend, but oversold conditions could lead to a brief relief rally. Sustainable upside will depend on easing of trade tensions, stabilisation of FII flows and confirmation that domestic earnings momentum remains intact.
