Indian Stock Market Weekly Performance: Sensex Falls 1,497 Points, Nifty Slips 443 Points

The domestic equity indices ended the truncated week with sharp losses, as sentiment was dampened by U.S. tariffs on Indian goods. Washington imposed 25 per cent duties on key exports, raising concerns over escalating trade tensions and potential economic fallout. Crude oil prices and foreign institutional investor (FII) fund flows are expected to remain in focus, while the broader market underperformed frontline indices.

For the week ended Friday, 29 August 2025, the S&P BSE Sensex declined 1,497.20 points or 1.84 per cent to settle at 79,809.65. The Nifty 50 index fell 443.25 points or 1.78 per cent to 24,426.85. The BSE Mid-Cap index tumbled 2.72 per cent to 44,642.31, while the BSE Small-Cap index slipped 2.93 per cent to 51,449.23.

On Monday, markets advanced with support from IT stocks after U.S. Federal Reserve Chair Jerome Powell signaled possible rate cuts from September. The Sensex gained 329.06 points or 0.40 per cent to 81,635.91, while the Nifty rose 97.65 points or 0.39 per cent to 24,967.75. Tuesday saw a sharp selloff, with the Sensex dropping 849.37 points or 1.04 per cent and the Nifty declining 1.02 per cent. Markets were shut on Wednesday for Ganesh Chaturthi. On Thursday, U.S. tariff announcements led to further declines, with the Sensex down 705.97 points or 0.87 per cent and the Nifty slipping 211.15 points or 0.85 per cent. Friday extended the losses modestly, ending the week with the Sensex down 270.92 points or 0.34 per cent and the Nifty lower by 74.05 points or 0.30 per cent.

Fitch Ratings affirmed India’s Long-Term Foreign-Currency Issuer Default Rating at ‘BBB-’ with a Stable Outlook. While U.S. tariffs pose downside risks, Fitch stated the overall impact remains uncertain. The Trump administration’s move to impose 50 per cent tariffs on Indian goods from 27 August added pressure. India’s industrial production grew 3.5 per cent in July, higher than 1.5 per cent in June. Mining output fell 7.2 per cent, manufacturing rose 5.4 per cent, and electricity grew 0.6 per cent.

President Trump’s new 25 per cent tariffs pushed overall duties on Indian exports to 50 per cent. Electrical machinery, gems and jewelry remain the most affected categories. Trade talks between India and the U.S. are expected to continue.

Bajaj Auto declined 1.36 per cent after announcing the resumption of supplies for its electric scooter Chetak, overcoming rare earth magnet supply issues. Signpost India gained 2.59 per cent after securing exclusive advertising rights across 67 Bangalore Metro Rail Project stations, with an estimated revenue potential of Rs 600–700 crore over nine years. Yes Bank slipped 2.25 per cent as the RBI approved Sumitomo Mitsui Banking Corporation’s proposal to acquire up to 24.99 per cent stake. Protean eGov Technologies surged 5.96 per cent after winning a Rs 1,160 crore UIDAI order to set up Aadhaar Kendras. IndusInd Bank fell 4.16 per cent after appointing Rajiv Anand as MD and CEO for three years, effective 25 August 2025.

South Korea’s central bank kept policy rates unchanged at 2.5 per cent amid uncertain trade conditions. In the U.S., Federal Reserve Chair Jerome Powell indicated that monetary easing could begin next month, citing a shifting balance of risks between employment and inflation in the evolving global environment.