Tariff Worries Drag Benchmark Indices Down; Sensex Declined by 706 Points; Nifty Ends at 24,500 Mark

Market Update at 4:00 PM: Indian equities settled lower on Wednesday as investors assessed the impact of 50 per cent tariffs on US imports from India, which came into effect a day earlier. The new tariffs, among the highest in Asia, were imposed following India’s continued purchase of Russian crude oil, escalating tensions between New Delhi and Washington.

At the close, the BSE Sensex fell by 705.97 points, or 0.87 per cent, to settle at Rs 80,080.57. The Nifty50 dropped 211.15 points, or 0.85 per cent, ending at Rs 24,500.90. Large-Cap IT stocks bore the brunt, with HCLTech, TCS, PowerGrid, and Infosys among the top laggards. On the other hand, Titan, L&T, Maruti Suzuki, and Axis Bank saw gains, supported by strong Quarterly Results and investor interest in dividend-paying and potentially multibagger stocks.

Broader markets also faced pressure, with the Nifty MidCap 100 and SmallCap 100 closing 1.27 per cent and 1.45 per cent lower, respectively. Sectorally, Nifty IT, FMCG, and PSU Bank indices fell over 1 per cent each, while Nifty Consumer Durables was the only sector to end in the green. Market participants remain cautious ahead of upcoming IPOs, bonus and right issue announcements, and quarterly results, which could influence stock performance in both Mid-Cap and Small-Cap segments.

Market Update at 12:15 PM: Indian stocks continued to trade lower on Thursday, August 28, after a weak opening as investors digested the impact of the 50 per cent tariffs on US exports that took effect a day earlier.

At 12:00 PM, the BSE Sensex index was down 342.66 points or 0.42 per cent at 80,443.88, while the Nifty50 slipped 88.3 points or 0.36 per cent to 24,623.75.

Among the Sensex stocks, HCL Tech, Infosys, Sun Pharma, Tata Motors, TCS, Power Grid, Bharti Airtel, ICICI Bank, and M&M were the Top Losers. On the other hand, Titan, Adani Ports, Asian Paints, Larsen & Toubro, Eternal, and Bajaj Finance managed to trade in the green, defying the broader market trend.

The additional tariffs, considered among the highest in Asia, come amid rising tensions between New Delhi and Washington over India’s continued purchase of Russian crude oil. Export-focused sectors such as apparel, textiles, auto parts, engineering goods, gems and jewellery, shrimp, and carpets remained in focus today.

In the broader markets, both the Nifty MidCap and Nifty SmallCap indices declined 0.5 per cent each. Volatility spiked with India VIX rising 3 per cent. Sector-wise, the Nifty IT and Nifty Realty indices fell over 1 per cent each, while most other indices remained in the red except Consumer Durables, Metal, and Oil & Gas.

In the IPO space, the mainboard issues of Anlon Healthcare and Vikran Engineering entered their second day, while Mangal Electrical Industries made a negative market debut. In the SME IPO segment, Globtier Infotech and NIS Management issues are set to close today, while Oval Projects Engineering opened for bidding. Current Infraprojects and Sattva Engineering Construction continued into their second day of subscription.

Market Update at 9:45 AM: Indian shares opened lower on Thursday, reacting to the implementation of additional U.S. tariffs on Indian imports. The Nifty 50 was down 0.51 per cent at 24,583.75 points, while the BSE Sensex lost 0.59 per cent to trade at 80,315.2 as of 9:17 a.m. IST.

The broader market also saw declines. The Nifty Small-cap index slipped 0.2 per cent and the Nifty Mid-cap index was down 0.1 per cent, while 14 of the 16 major sectoral indices logged losses. Market sentiment remains cautious, with concerns that the pressure could extend in the near term.

This decline follows a sharp fall earlier in the week. On Tuesday, both the Sensex and Nifty lost nearly 1 per cent each, marking their steepest single-day percentage drop in three months, just before the new tariff measures came into effect. Domestic markets remained closed on Wednesday due to a local holiday.

The US has imposed an additional 25 per cent punitive tariff on Indian goods over New Delhi’s continued purchase of Russian oil. With this move, the overall duty on affected Indian exports rises to 50 per cent. Such policy developments could weigh on quarterly results of large-cap exporters and may also impact sentiment around upcoming IPO activity in the near term.

Pre-Market Update at 7:30 AM: Indian equity benchmarks, Sensex and Nifty 50, are expected to open lower on Thursday, August 28, as the additional 25 per cent US tariffs on Indian exports came into effect from yesterday. With this move, the cumulative tariff imposed by the US on India has reached 50 per cent, impacting several export-driven sectors, including small-cap and mid-cap companies.

As of 7:16 AM, the GIFT Nifty was trading near 24,656, up 79 points from its previous close but 39 points lower compared to Tuesday’s close. Asian markets traded mixed, while US indices closed higher overnight, with the S&P 500 touching an intraday record high.

On Tuesday, August 26, Foreign Institutional Investors (FIIs) turned net sellers, offloading equities worth Rs 6,516.49 crore. In contrast, Domestic Institutional Investors (DIIs) were buyers, with net purchases of Rs 7,060.37 crore. This marked the second consecutive trading session of buying by DIIs.

The Indian stock market witnessed a sharp sell-off on August 26, wiping out nearly Rs 6 lakh crore in investor wealth. The Sensex fell 1.04 per cent to close at 80,786.54, while the Nifty 50 slipped 1.02 per cent to settle at 24,712.05. The BSE Midcap index dropped 1.34 per cent, and the Smallcap index declined 1.68 per cent. Indian markets remained shut on Wednesday, August 27, due to Ganesh Chaturthi.

US markets closed higher on Wednesday. The Dow rose 147.16 points or 0.32 per cent to 45,565.23, the S&P 500 gained 15.46 points or 0.24 per cent to 6,481.40, and the Nasdaq advanced 45.87 points or 0.21 per cent to 21,590.14. The rally was supported by expectations of strong upcoming quarterly results and IPO activity in the US market.

The US government has imposed an additional 25 per cent tariff on Indian exports starting August 27 under an executive order by President Donald Trump. The move, linked to India’s crude oil imports from Russia, doubles the overall tariff burden to 50 per cent. Export-oriented large-cap and mid-cap companies may see short-term pressure, particularly in sectors like textiles, IT, and auto components.

The US dollar index stood steady at 98.135 after two days of declines, as bets increased for a Federal Reserve rate cut next month. Gold prices edged lower, with spot gold down 0.1 per cent at USD 3,396.56/oz amid an ongoing legal tussle between Trump and Fed Governor Lisa Cook. Crude oil prices also eased, with Brent crude futures down 0.53 per cent to USD 67.69 and WTI futures slipping 0.59 per cent to USD 63.77, following gains of over 1 per cent in the prior session.

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Disclaimer: The article is for informational purposes only and not investment advice.