Indian stock markets opened weak on August 26 after US President Donald Trump announced fresh tariffs on Indian goods. The Sensex dropped nearly 550 points, while the Nifty fell below the 24,900 mark. Banking, metal, and pharma stocks led the decline, reflecting investor nervousness over the potential economic impact.
At 9:35 am, the Sensex was down 537 points at 81,099, while the Nifty slipped 160 points to 24,807. Market breadth was negative, with more than twice as many stocks declining as advancing. Mid- and small-cap stocks also followed the weak trend.
The fall comes after Trump said earlier this month that tariffs on Indian goods would be doubled from 25% to 50% because of New Delhi’s continued purchase of Russian oil. The move aims to increase pressure on Russia by curbing India’s energy trade with Moscow.
Key Stocks and Sectors
On the Nifty, the worst performers included Tata Steel, Dr. Reddy’s, ICICI Bank, Bharat Electronics, and Hindalco. In contrast, stocks like HUL, Bajaj Auto, TCS, and Infosys managed to stay in positive territory. Titan slipped despite a positive “outperform” rating from Bernstein, while Reliance Industries gained attention after UBS gave it a “buy” rating with a 24% upside target.
Private equity firm TPG Asia also sold its entire 15.2% stake in Sai Life Sciences through block deals worth nearly ₹2,810 crore, sending the stock down about 4%.
Market Outlook
Analysts say Indian equities remain among the costliest globally, supported by strong domestic inflows even as foreign investors continue selling. According to Geojit’s V K Vijayakumar, liquidity is keeping markets buoyant, and while volatility is likely, a deep correction may not occur.
Technically, Nifty is stuck between 25,150 and 24,850, pointing to a consolidation phase. Unless the index breaks above 25,150, upside momentum will remain capped. A fall below 24,800 could trigger sharper losses.
With Trump’s official tariff announcement expected on August 27, traders expect sideways-to-volatile sessions in the coming days. For now, experts suggest a cautious “sell on rise” approach until a clear breakout or breakdown gives direction.
