Stock Market Today: Sensex Crashes 524 Points, Nifty Ends at 24,806 as Trump Tariff Jitters Hit

Overview

• Stock market today witnessed broad-based selling as Nifty declined 161 points to 24,806, while Sensex dropped 524 points amid growing trade tensions with the US.

• Banking sector faced severe pressure with Nifty Bank falling below 55,000 for the first time since May 22, declining 0.94%.

• FMCG emerged as the lone bright spot, gaining 0.5% and snapping a three-day losing streak led by HUL and Nestle.

Indian stock market  today is in the red as investors grappled with escalating trade tensions between India and the United States. Nifty 50 index traded at 24,806.45, registering a decline of 161.30 points or 0.65%. The broader Sensex mirrored this weakness, settling at 81,111.43 with a loss of 524.48 points, also down 0.64%. The broader market showed even more weakness, with both Nifty Smallcap and Nifty Midcap indices declining around 1%.

The market's decline was primarily triggered by additional Trump tariffs of 25% on Indian imports, set to take effect from August 27. It has created uncertainty among investors, particularly affecting sectors with export exposure. Let's see how different sectors and stocks performed during today's volatile trading session based on Moneycontrol’s live market data.

Banking Sector Bears the Brunt

The banking sector emerged as the day's biggest casualty. Nifty Bank index crashed 519.45 points or 0.94% to settle at 54,619.85. This is the first time since May 22 that the banking index has gone below the psychologically important 55,000 level.

HDFC Bank shares, despite trading ex-bonus, declined 1.13% to Rs 971.15 on volumes of 178,750 shares. The stock touched an intraday high of Rs 986.30 before settling lower. Market participants noted that the ex-bonus factor contributed to some of the price adjustment, though broader sector weakness also played a role.

FMCG Stocks Provide Market Support

Against the backdrop of widespread selling, the FMCG sector emerged as a rare bright spot. Nifty FMCG index gained 0.5%, snapping a three-day losing streak. This defensive sector's outperformance reflected investors' flight to quality amid market uncertainty.

Hindustan Unilever (HUL) stock led the FMCG rally. It surged 2.37% to Rs 2,694 on healthy trading volumes of 918.63k shares. Nestle followed with a solid 2.22% gain to Rs 1,170.80, while Colgate-Palmolive advanced 1.42% to Rs 2,315.20. FMCG sector's resilience is due to relatively lower exposure to global trade disruptions.

Auto and Metal Stocks Hit by Trump Tariff Fears

The automobile and metals sectors bore the brunt of trade war concerns. Nifty Auto index fell over 0.6%, while Nifty Metal index dropped more than 1.2% to hover around 9,319.

Tata Steel shares declined 1.79% to Rs 156.78, while other metal stocks also faced selling pressure. The sector's weakness stems from the potential of reduced demand for Indian steel and other metal products in the US market.

Also Read: Tata Motors Share Price at Rs. 681.25, Down 0.81% After NCLT Restructuring Nod

Telecom Sector Faces Volatility

Vodafone Idea stock emerged as one of the day's most volatile stocks. It plunged 9.86% to Rs. 6.67 in its worst single-day performance in 14 weeks. The stock traded on exceptionally high volumes of 62.48 million shares, nearly double its five-day average. Despite the sharp decline, the stock managed to trade above its recent 52-week low of Rs 6.12.

The high trading volumes suggest institutional activity, though the direction remains bearish in the near term. Investors remain cautious about the sector's capital-intensive nature and competitive pressures.

Institutional Investment Activity 

Foreign Institutional Investors (FIIs) continued their selling spree, with net outflows of Rs 2,466.24 crore on August 25. On the other hand, Domestic Institutional Investors (DIIs) provided some support with net purchases of Rs 3,176.69 crores. The contrasting flows between FIIs and DIIs highlight that domestic investors are optimistic about long-term fundamentals despite near-term challenges.

Notable Corporate Developments

Several companies made announcements that influenced individual stock movements. Protean eGov Technologies received a work order worth Rs 1,160 crore from the Unique Identification Authority of India (UIDAI), as reported by Mint. The work order is for establishing and running district-level Aadhaar Seva Kendras. This development could provide long-term revenue visibility for the company.

Reserve Bank of India approved Vishakha Mulye's appointment as Managing Director & CEO of Aditya Birla Capital, according to Business Standard. The appointment will be for five years, along with Rakesh Singh's appointment as Executive Director and CEO (NBFC) until July 2027. Such leadership appointments often provide stability and strategic direction for financial services companies.

Jammu & Kashmir Bank appointed Sankarasubramanian Krishnan as Non-Executive Part-Time Chairman for a term until March 2028, subject to RBI approval. The appointment of experienced leadership typically supports governance and strategic initiatives.

Also Read: US Stock Market Today: S&P 500 drops 0.2%, NASDAQ 100 declines 0.3%, Intel Gains 1.8%

Market Outlook and Technical Analysis

From a technical perspective, Nifty's decline below 24,900 and near the 20-day exponential moving average (20-DEMA) at 24,737 suggests increased selling pressure. The index's inability to hold above key support levels indicates that bears are gaining control in the near term.

For Sensex, the break below 81,200 and sustained trading below this level suggest further weakness could extend toward the 80,000-80,500 support zone. Market participants are closely watching these technical levels for signs of stabilization.

Investors should focus on quality stocks with strong domestic business models and limited exposure to trade disruptions. Experts suggest that maintaining a cautious approach until clarity emerges on US-India trade relations will be helpful in the short term.

FAQs

1. Why did Indian stock market fall today?

The Indian stock market declined primarily due to concerns over the Trump administration's draft order implementing an additional 25% tariff on Indian imports from August 27. This created uncertainty among investors, particularly affecting export-oriented sectors like metals and automobiles.

2. Which sectors performed worst today?

Banking was the worst performer with Nifty Bank falling 0.94% below 55,000 for the first time since May 22. Metals declined over 1.2% and real estate dropped 1.6%, while auto stocks also faced pressure due to tariff concerns.

3. Which are the top gainers in stock market today?

HUL led gains with a 2.37% rise to Rs 2,694, followed by Nestle (+2.22%) and Eicher Motors (+2.03%). The FMCG sector outperformed as investors sought defensive plays amid market uncertainty.

4. How did institutional investors behave today?

FIIs were net sellers with outflows of Rs 2,466 crore, continuing their selling streak. However, DIIs provided support with net purchases of Rs 3,177 crore, showing domestic confidence despite foreign investor concerns.

5. What are the key levels to watch for Nifty and Sensex?

Based on Moneycontrol data, for Nifty 50, support lies at 24,700-24,750 with resistance at 24,950-25,000. For Sensex, key support is at 80,800-81,000 with resistance at 81,500-82,000. Breaking support levels could trigger further selling.