The Indian market for stocks ended sharply lower on August 28th 2025 in response to the negative impact of newly-imposed 50 percent U.S. tariffs on Indian exports. It marked the second day in a row with selling pressure as indexes of benchmarks and sectoral gauges seeing a significant decline.
Nifty 50: Sharp Decline Below 24,600
The Nifty 50 index saw a broad-based sell-off, dropping 211.15 points (0.85 percent) to close at 24,500.90. From the 50 index’s constituents, 36 stocks finished in red and dragged the index down.
- Top Drags:
- HDFC Bank: -1.60%
- ICICI Bank: -1.24%
- Infosys: -1.93%
- Top Gainers:
- Titan: +1.22%
- Larsen & Toubro (L&T): +0.53%
In this downturn, the Nifty 50 has erased almost all gains it made in the last two weeks which indicates a persistent negative sentiment and increased vigilance for traders.
Bank Nifty: Slips Below 54,000
The Bank Nifty index was subject to massive selling pressure, dropping by 630 points (1.16 percent) to close at 53,820.35, marking the lowest since May 2025.
- HDFC Bank: -1.60%
- ICICI Bank: -1.24%
- Kotak Bank: -1.07%
- SBI: -0.73%
- Bank of Baroda: -0.81%
The decrease is due to the weakness of financial stocks that are thought to be as a major driver of market vigor.
Sectoral Performance: Widespread Losses
The majority of sectoral indices finished within negative territory which emphasized the broad-based nature of this selling.
- IT Index: -1.6 percent and bounded by weak global signals.
- Realty Index: -1.5 percent due to higher costs and low sentiment hurt the property sector.
- PSU Banking, FMCG, and Pharma all fell into red, mirrored by general market weakening.
- Bright Spot: The Consumer Durables index proved resilient, helped by optimism about the upcoming tax reforms and demand for the festive season.
Midcap & Smallcap Indices: Broad Market Weakness
The Nifty Midcap 100 and the the Nifty Smallcap 100 both declined by more than 1 percent in the wake of sustained selling pressure outside of the large-cap stock. Of 500 companies listed just 101 stocks were higher which suggests that there is a low breadth in the market.
Key Drivers Behind the Sell-Off
- U.S. Tariff Impact – The imposing of tariffs at 50% for Indian exports has led to worries about the impact on earnings in sectors that are heavily dependent on exports.
- Profit-Booking – Following recent upswings trading, traders have decided to book profits in the face of the global uncertainty.
- Technical Insufficiency It is the reason why Nifty fell below the important moving averages which triggered further selling.
Market Outlook
In the wake of Nifty 50 losing nearly 500 points a couple of hours Investors are cautious in the midst of India is about to enter September. Market analysts believe that the tensions in trade globally, combined with domestic policy signals are likely to determine the direction of the market in the near future.
Analysts have suggested that the support level for Nifty is at in the region of 24,300 and a significant rise above 24,700 is required to bring back positive momentum.
Conclusion
The trading session that took place on August 28th 2025 proved to be an extremely difficult session for Indian equity markets, resulting in an insecure end to the derivatives series. In the event of Nifty 50 trading below 24600 in the same way as Bank Nifty averaging under 54,000 the sentiment of investors remains uncertain due to global headwinds as well as worries about tariffs.
In the future, sector-specific resilience in consumer durables and policy-driven optimism might bring some relief, but the markets are expected to be volatile until more clarity is found about the dynamics of global trade.
Disclaimer
This article is intended for informative purposes only and is not intended to be considered any investment, financial, or other advice. Market investments in stocks are subject to risk and fluctuation. It is recommended that investors seek the advice of accredited financial advisers and study the market conditions before making investments.