Stock Market Today: Sensex Falls 261 Points, Nifty at 24,647 Amid Trump Tariff Fears

Overview

• Sensex fell 261 points to 80,525, while Nifty slipped 64 points to 24,647 as investors digested the US decision to double tariffs on Indian imports to 50%.

• Nifty IT dropped 1.19% amid fears of disruption to tech exports, while Nifty Bank lost 0.31% with HDFC Bank and ICICI Bank under pressure. 

• Despite broad-based selling, consumer durables bucked the trend with Titan (+1.32%), SBI Life (+1.22%), and Asian Paints (+1.50%) providing support.

Indian stock market today slipped into the red on August 28, 2025, as investors reacted to fresh Trump tariff measures. At press time, BSE Sensex traded at 80,525.04, down 261.50 points (-0.32%). Meanwhile, Nifty 50 settled at 24,647.85, losing 64.20 points (-0.26%).

The US officially doubled import duties on Indian goods to 50% after an additional 25% levy took effect on Wednesday, August 27, a market holiday in India for Ganesh Chaturthi. These new tariffs, linked to India’s purchase of Russian oil, immediately triggered selling pressure across Dalal Street.

Analysts noted that export-driven sectors such as gems and jewellery, seafood, textiles, apparel, chemicals, and auto components are likely to feel the sharpest pain from the hike. This is due to their heavy reliance on US markets. However, some industries like pharmaceuticals, smartphones, and energy have been spared from the latest tariff round, offering limited relief.

Let’s see how various stocks and sectors performed today based on Moneycontrol Live Updates. 

Sectoral Performance: IT and Banking Lead Declines

The technology sector emerged as the day's worst performer, with Nifty IT index plummeting 427.95 points to close at 35,635.25, a steep 1.19% decline. This sharp fall reflected investor concerns about potential disruptions to India's technology services exports to the US market.

Banking stocks also struggled, with Nifty Bank index declining 169.65 points (-0.31%) to settle at 54,280.80. Major banking names, including HDFC Bank and ICICI Bank were among the most actively traded stocks. HDFC Bank shares traded at Rs. 970.90, down 0.26% despite high trading volumes exceeding 9.85 million shares.

Among individual stocks, Shriram Finance emerged as a major loser, falling 3.14% to Rs. 576.05 on trading volumes of 11.80 million shares. The stock was among the most actively traded on the NSE, indicating heightened institutional activity.

Bright Spots: Consumer Durables Show Resilience

Against the backdrop of widespread selling, certain sectors managed to buck the trend. Adani Enterprises stock led the gainers on Nifty 50, advancing 2.10% to Rs. 2,319.60. Hero Motocorp followed with a 1.90% gain to Rs. 5,170.00, while Asian Paints rose 1.50% to Rs. 2,518.70.

The consumer durables segment emerged as the sole sectoral gainer. Companies like Titan Company are advancing 1.32% and SBI Life Insurance is rising 1.22%, providing some support to the overall market sentiment.

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

Institutional Activity: Mixed Signals

Foreign Institutional Investors (FIIs) continued their selling momentum, recording net outflows of Rs. 6,516.49 crore on August 26, 2025. However, Domestic Institutional Investors (DIIs) provided support, with net purchases amounting to Rs. 7,060.37 crore. Hence, this indicates continued confidence among local institutional players in India's long-term growth prospects.

Notable Corporate Developments

Several companies made announcements during the trading session. Karur Vysya Bank completed its bonus share allotment, as reported by Upstox. It distributed 16.10 crore equity shares with a face value of Rs. 2 each to existing shareholders. The stock traded at Rs. 215.80, down marginally by 0.16%.

G R Infraprojects received a Letter of Intent worth Rs 367.07 crore from REC Power Development and Consultancy,  according to TradingView. The stock responded positively, gaining 0.98% to close at Rs. 1,273.

In the IPO space, Mangal Electrical Industries made its stock market debut with a subdued performance, as reported by The Economic Times. The shares listed at Rs. 556 on NSE, representing a discount of 0.89% to its issue price despite strong subscription demand during its public offering.

Market Outlook

From a technical standpoint, the Nifty's decline below the psychologically important 24,700 level suggests bearish sentiment in the short term. Market participants are focusing on the advance-decline ratio, which stood unfavorably at 1118:1505. It means that declining stocks outnumbered advancing ones on the NSE. The broad-based weakness suggests that the selling pressure extends beyond large-cap stocks to mid and small-cap segments as well.

The BSE Smallcap index declined by 0.24%, while sectoral rotation was evident, with most indices trading in negative territory, except for the consumer durables sector. Investors are likely to remain cautious in the near term, closely monitoring developments on the US-India trade front. The market's reaction to any official announcements regarding tariff implementations will be important for determining the next directional move.

Also Read: Reliance Infra Shares Dip 5% to Rs 275.65 Amid CBI Probe

FAQs

1. Why did the Indian stock market fall today?

The Indian stock market fell today mainly due to heightened trade war fears after the Trump administration confirmed an additional 25% tariff on Indian imports effective August 27. This policy move has raised investor anxiety, especially in export-heavy sectors like metals, auto, and IT. Investors worry about shrinking global demand and higher trade costs, triggering widespread selling across benchmark indices.

2. Which sectors performed the worst in today’s trading session?

Banking stocks were the biggest laggards, with Nifty Bank falling 0.94% to close below 55,000 for the first time in over three months. Metals dropped over 1.2% as Tata Steel and peers faced tariff pressure. The real estate index also slipped 1.6%, while auto declined 0.6%. These declines reflected investor caution over sectors heavily linked to global trade and interest rate sensitivities.

3. Which stocks and sectors showed resilience today?

The FMCG sector provided the only relief in today’s selloff, with the Nifty FMCG index gaining 0.5% led by Hindustan Unilever (+2.37%), Nestle (+2.22%), and Colgate (+1.42%). Investors preferred defensive consumption-driven stocks less exposed to external trade risks. Eicher Motors (+2.03%) also supported gains. This resilience highlights investors’ flight to safety in sectors with steady domestic demand and limited reliance on exports.

4. How did institutional investors behave in today’s market?

Foreign Institutional Investors (FIIs) extended their selling streak with net outflows worth Rs. 2,466 crore, signaling global caution around India’s exposure to US tariffs. In contrast, Domestic Institutional Investors (DIIs) supported the market with net inflows of Rs. 3,177 crore. This divergence reflects local confidence in India’s long-term fundamentals, even as FIIs adopt a risk-off stance amid geopolitical and trade uncertainties.

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

For Nifty 50, immediate support lies at 24,700-24,750, aligned with the 20-day exponential moving average (20-DEMA). Resistance is at 24,950-25,000. For Sensex, support is at 80,800-81,000, with resistance between 81,500-82,000. If support levels break, deeper corrections could follow. Traders are closely monitoring these zones as decisive moves may determine short-term direction amid tariff uncertainties.