Sensex, Nifty tumble as U.S. tariff fears, FII selling dent sentiment

The key equity benchmarks ended with sharp losses on Tuesday, unsettled by concerns over potential U.S. trade actions. Investor sentiment soured after Washington issued a draft notice proposing tariffs of up to 50% on Indian goods, effective from Wednesday, 27 August 2025.

The slide was compounded by persistent FII selling, weakness in the rupee, and negative cues from global markets. Both the Sensex and Nifty gave up last week?s gains, with the Nifty closing below the 24,750 mark. Sectorally, consumer durables and metal stocks were among the worst hit. In contrast, FMCG counters bucked the downtrend.

The S&P BSE Sensex dropped 849.37 points or 1.04% to 80,786.54. The Nifty 50 index tumbled 255.70 points or 1.02% to 24,712.05.

Bajaj Finance (down 2.67%), Reliance Industries (down 1.95%) and ICICI Bank (down 1.15%) were major Nifty drags.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 1.34% and the S&P BSE Small-Cap index slumped 1.68%.

The market breadth was weak. On the BSE, 1,220 shares rose and 2,891 shares fell. A total of 136 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 3.69% to 12.19.

The domestic equity market will remain shut tomorrow on account of Ganesh Chaturthi.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.51% to 6.643 from the previous close of 6.592.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.7000 compared with its close of 87.5625 during the previous trading session.

MCX Gold futures for 3 October 2025 settlement added 0.25% to Rs 1,00,871.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.17% to 98.28.

The United States 10-year bond yield gained 0.47% to 4.295.

In the commodities market, Brent crude for October 2025 settlement lost $1.07 or 1.56% to $67.73 a barrel.

Global Market:

European shares declined on Tuesday as traders monitored the potential for a no-confidence vote in the government next month.

The country?s three main opposition parties said they would not back a confidence vote called by Prime Minister Francois Bayrou for Sept. 8 over his budget plans.

Most Asian shares ended lower, as investors weighed U.S. President Donald Trump?s escalatory rhetoric on tariffs.

President Donald Trump was quoted by the media on Monday that China has to give the United States magnets, or we have to charge them a 200% tariff or something, amid a trade dispute between the two nations.

The US president vowed Monday to impose ?substantial? new tariffs and restrict US chip exports for all countries that do not remove digital taxes and related regulations.

Donald Trump on Monday fired Federal Reserve Governor Lisa Cook, an unprecedented and significant escalation of his attacks on the U.S. central bank?s independence over its refusal to cut interest rates quickly.

President Trump, in a termination letter to Cook posted on a social media platform, reportedly cited allegations that she had made false statements on applications for home mortgages.

Wall Street stocks ended lower on Monday as investors parsed the outlook for U.S. interest rates. The S&P 500 declined 0.43% to end the session at 6,439.32 points. The Nasdaq declined 0.22% to 21,449.29 points, while the Dow Jones Industrial Average declined 0.77% to 45,282.47 points.

U.S. Federal Reserve Chair Jerome Powell hinted at the Jackson Hole Symposium that an interest-rate cut could be considered at the central bank's September meeting, citing recent labor market weakness.

These comments from Powell nudged major global research houses to reportedly revise their expectations, with some of them currently seeing a 25-basis-point reduction in borrowing costs next month.

New Listings:

Shares of Gem Aromatics ended at Rs 319.10 on the BSE, representing a discount of 1.82% compared with the issue price of Rs 325.

The scrip was listed at 325, matching the initial public offer (IPO) price. The stock has hit a high of Rs 349 and a low of Rs 315. On the BSE, 10.59 lakh shares of the company were traded in the counter.

Shares of Shreeji Shipping Global ended at Rs 254.60 on the BSE, representing a premium of 1.03% compared with the issue price of Rs 252.

The scrip was listed at Rs 271.85, exhibiting a premium of 7.88% to the issue price. The stock has hit a high of Rs 275 and a low of Rs 252.25. On the BSE, 16.87 lakh shares of the company were traded in the counter.

Shares of Vikram Solar ended at Rs 356.45 on the BSE, representing a premium of 7.36% compared with the issue price of Rs 332.

The scrip was listed at Rs 340, exhibiting a premium of 2.41% to the issue price. The stock has hit a high of Rs 381.70 and a low of Rs 334.05. On the BSE, 97.08 lakh shares of the company were traded in the counter.

Shares of Patel Retail ended at Rs 289.75 on the BSE, representing a premium of 13.63% compared with the issue price of Rs 255.

The scrip was listed at Rs 305, exhibiting a premium of 19.61% to the issue price. The stock has hit a high of Rs 305 and a low of Rs 289.75. On the BSE, 6.83 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Sun Pharmaceutical Industries slipped 3.40% to Rs 1600.45 after a foreign brokerage downgraded the stock to 'underperform' from 'neutral' and cut its target price to Rs 1,570 from Rs 1,730.

Protean eGov Technologies surged 7.93% after the company secured an order worth Rs 1,160 crore from the Unique Identification Authority of India (UIDAI) to set up Aadhaar Kendras across the country.

Ola Electric Mobility jumped 4.55% after the company secured certification under the Production Linked Incentive (PLI) scheme for its Gen 3 scooter portfolio.

Ashiana Housing advanced 2.19% after the company has acquired a 22.71-acre land on perpetual lease basis from Mahindra World City Developers, a material subsidiary of Mahindra Lifespace Developers.

Waaree Energies jumped 3.45% after the company said that its wholly owned subsidiary, Waaree Solar Americas has secured a significant order for the supply of 452 megawatts (MW) of solar modules.

Authum Investment & Infrastructure rallied 3.12% after the company entered into share subscription and purchase agreement (SSPA) to acquire 35.09% stake in Rivaar Labs for total consideration of Rs 36.57 crore.

Suraj Estate Developers fell 1.67%. The company said that it has acquired a prime 644 square meters land parcel at N.M. Joshi Marg, Lower Parel, Mumbai, for a total consideration of Rs 6.44 crore.

Indusind Bank declined 1.98%. The bank?s said that its board has approved the appointment of Rajiv Anand as the managing director (MD) and chief executive officer (CEO) effective from August 25, 2025 for three years.

IPO Updates:

Vikran Engineering's IPO received bids for 13,82,90,756 shares as against 5,87,39,128 shares on offer, according to stock exchange data at 16:45 IST on Tuesday (26 August 2025). The issue was subscribed 2.35 times.

Anlon Healthcare's IPO received bids for 2,22,65,296 shares as against 1,33,00,000 shares on offer, according to stock exchange data at 16:45 IST on Tuesday (26 August 2025). The issue was subscribed 1.67 times.

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