Top indices
| Index | Close | Change | % change | Notes |
|---|---|---|---|---|
| BSE Sensex | 80 ,786.54 | −849.37 pts | −1.04 % | worst day in ~3 months as US tariff news hit sentiment |
| Nifty 50 | 24 ,712.05 | −255.70 pts | −1.02 % | slid below 24,750; turned negative for August |
| Nifty Bank* | ≈55 ,150 | ↓ ~1 % | — | heavyweights HDFC Bank & ICICI Bank fell ~1 %; index closed near 55.1k |
*Bank Nifty closing value approximated from intraday quotes.
Sectoral performance
| Sector | Performance* | Comments |
|---|---|---|
| FMCG | +0.9 % | only sector in the green; expectations of GST cuts on staples drove HUL, Nestlé & Britannia |
| Realty | −2.24 % | top loser as risk‑off sentiment hit cyclical sectors |
| PSU Bank | −1.87 % | selling pressure in state‑run lenders |
| Pharma | −1.67 % | Sun Pharma dragged the index lower |
| Metal | −1.66 % | profit‑taking and worries about tariffs hurt Tata Steel, JSW Steel |
| Auto | ~flat to −1 % | Maruti Suzuki and Hero MotoCorp limited the fall |
| IT | slight decline | TCS marginally higher; others trimmed gains |
*Percentage change denotes change in corresponding Nifty sectoral indices versus the previous close.
Key statistics
- Market breadth: on the BSE, ~4,241 stocks traded; 1,219 advanced, 2,885 declined and 137 were unchanged.
- 52‑week extremes: 101 stocks hit new 52‑week highs while 103 stocks hit new 52‑week lows.
- Investors’ wealth: market capitalisation of BSE‑listed firms fell from ₹455.02 lakh crore to ₹451.63 lakh crore—an erosion of roughly ₹3.39 lakh crore.
- Volatility: India VIX gained ~3.69 % as traders sought protection against sudden swings.
- Foreign flows: foreign institutional investors (FIIs) continued their selling spree; cumulative August outflows ~₹28,000 crore (about US$2.5 billion)—highest monthly outflow since February.
- Currency: the rupee weakened for a fifth straight session, closing near ₹87.75/US$.
Top gainers & losers
| Top gainers (Nifty 50/large‑caps) | Price (₹) | % chg | Why it moved |
|---|---|---|---|
| Eicher Motors | 6,144.00 | +2.56 % | continued momentum in auto stocks; upbeat premium motorcycle sales |
| Hindustan Unilever (HUL) | 2,693.80 | +2.36 % | FMCG theme rallied on hopes of GST cuts on biscuits and personal‑care items |
| Maruti Suzuki | 14,692.00 | +1.66 % | gained for seventh session; GST‑reform optimism and price hikes |
| ITC | 403.20 | +0.96 % | defensives in favour; cigarette business resilient |
| TCS | 3,157.90 | +0.55 % | rotation into IT; rupee weakness supportive |
| Top losers (Nifty 50/large‑caps) | Price (₹) | % chg | Driver |
|---|---|---|---|
| Shriram Finance | 594.95 | −4.17 % | heavy selling in NBFCs amid rate fears |
| Sun Pharma | 1,600.00 | −3.42 % | profit‑taking after recent rally; sectoral weakness |
| Tata Steel | 154.71 | −3.08 % | metal stocks slumped on tariff worries and global price fall |
| Bajaj Finance | 874.50 | −2.92 % | high‑beta financial under pressure; FII selling |
| Trent | 5,278.00 | −2.67 % | profit‑booking after a strong run |
(Other losers: Bajaj Finserv −2.29 %, Mahindra & Mahindra −2.28 %.)
What moved the market
- US tariff threat: the U.S. Department of Homeland Security confirmed an additional 25 % duty on all Indian‑origin goods effective 27 Aug 2025. Markets fear the combined 50 % tariff (including existing duties) will hurt exporters and slow GDP growth.
- Global risk‑off mood: Asian markets (Nikkei, Kospi) and European futures were in the red as U.S. President Donald Trump fired Fed Governor Lisa Cook and threatened digital‑tax tariffs. The prospect of prolonged trade disputes rattled investors worldwide.
- Foreign selling & rupee weakness: FIIs continued heavy selling, dragging banking and financial stocks. A depreciating rupee (₹87.75/$) raised concerns over imported inflation and further outflows.
- Valuation concerns: Indian equities trade around 19× projected FY27 earnings; some market participants considered valuations stretched.
- Sector rotation: defensive FMCG names attracted flows due to consumption‑boost hopes from GST reforms; cyclical sectors like metal, realty, and PSU banks saw profit‑taking.
Global cues
- US‑India trade tensions: the additional tariff on Indian goods (announced by Washington) will start after midnight ET on 27 Aug 2025. This comes amid Washington’s displeasure over India’s purchase of Russian crude and digital‑taxes on US tech firms. Markets worry about retaliation and a global trade war.
- US monetary policy uncertainty: Trump’s criticism of Fed Chair Jerome Powell and removal of Governor Lisa Cook raised questions about the independence of the Federal Reserve, increasing risk premium.
- Weak global markets: ahead of important U.S. inflation data and central‑bank speeches, global equities fell; commodity prices eased.
- Rupee & crude: the rupee weakened, while Brent crude remained volatile around US$81‑82/bbl, adding to inflation concerns.
Stocks to watch
- ACME Solar Holdings: board meeting scheduled for 27 Aug 2025 to consider fundraising via Qualified Institutional Placement, FPO or private placement. This could boost liquidity and expansion for the renewable‑energy firm.
- Vedanta (VEDL): the stock traded ex‑dividend on 26 Aug for a ₹16/share interim payout; record date 27 Aug. Dividend income may attract interest; price may adjust downward in the short term.
- Amber Enterprises: scheduled an analyst/investor meet on 1 Sept 2025 (8 A.M. IST, hosted by Motilal Oswal). Discussions are expected to revolve around FY25 performance and growth outlook.
- Unichem Laboratories: shares gained after the USFDA classified its Roha API plant inspection as “Voluntary Action Initiated” (VAI) and issued an Establishment Inspection Report. Regulatory clarity could help sentiment.
- Maruti Suzuki & Britannia: continue to benefit from GST 2.0 reform expectations; watch for follow‑through buying.
- Ola Electric: gained ~4.6 % after receiving a compliance certificate for its Gen‑3 scooters; new‑age EV stocks may stay in focus.
- Vodafone Idea: slumped ~9 % intraday after reports that the government isn’t considering additional relief; stock may remain volatile.
Corporate updates
- ACME Solar – board meeting on 27 Aug to consider equity fundraising (QIP, FPO, private placement).
- Vedanta – traded ex‑dividend on 26 Aug for ₹16 interim dividend; record date 27 Aug; ~₹6,256 crore payout approved on 21 Aug.
- Amber Enterprises – analyst/investor meeting on 1 Sept, arranged by Motilal Oswal in Mumbai.
- Unichem Labs – USFDA classified Roha API facility inspection as VAI and issued EIR; shares up 6 %.
- Maruti Suzuki – shares hit new high (~₹14,795) after rallying ~15 % in seven sessions; benefits from GST‑reform hopes.
- Britannia Industries – rallied as lower GST on biscuits is anticipated.
Technical view & levels for 28 Aug 2025 (next trading day)
Indian markets are closed on Wednesday, 27 Aug, for a holiday. Trading resumes on Thursday, 28 Aug 2025, which is also monthly derivatives expiry. Volatility is expected to remain high as participants digest the impact of U.S. tariffs and expiry dynamics.
| Index | Supports (S1–S3) | Resistances (R1–R3) | Bias |
|---|---|---|---|
| Nifty 50 | 24,603 – 24,569 – 24,515 | 24,712 – 24,746 – 24,800 | Short‑term bias remains negative; failure to hold 24,600 could open the door to 24,300–24,200, while recovery above 24,750 may see relief towards 24,900. |
| Bank Nifty | 55,234 – 55,129 – 54,959 | 55,574 – 55,679 – 55,849 | Supports near 55,200/55,000 are critical; resistance zone at 55,600‑55,850. |
*Support and resistance levels are derived from pivot‑point calculations (previous day’s high/low/close).
Outlook for tomorrow
- Tone: With the market reopening on Thursday, sentiment is expected to remain cautious due to the official start of U.S. tariffs on Indian goods and monthly expiry adjustments. Traders may prefer to reduce exposures or hedge positions; high intraday swings are likely.
- Downside risk: A decisive break below Nifty 24,600 or Bank Nifty 55,200 could trigger further selling towards 24,300 and 54,700 respectively.
- Upside catalysts: Any positive commentary from the Government of India regarding mitigation measures (GST cuts, tariff negotiations) or relief rally in global markets may trigger a short‑covering bounce. Defensive sectors like FMCG and select auto names may continue to outperform.
In summary, 26 August was a turbulent session for Indian equities as the sensex and Nifty logged their worst losses in months, dragged by US tariff threats, persistent FII selling and weak global cues. Defensive FMCG stocks provided some cushion, but most sectors and mid/small‑caps faced heavy selling. Investors should brace for continued volatility around the tariff implementation date and maintain a balanced approach with attention to support levels.
