Post-Market Report (26 Aug 2025): Nifty slips to 24,712; rupee weak at 87.68/USD
Market Overview
Indian markets witnessed a sharp sell-off on 26 August 2025, continuing Monday’s weakness. The Sensex dropped 849 points while the Nifty50 ended the session at 24,712. This marked the worst decline in nearly three months as U.S. tariff escalation kept investors on edge. Volatility remained high throughout the day, with both benchmarks trading in the red from the opening tick.
The broader markets mirrored this weakness — the Nifty Midcap 100 fell 1.1% and the Smallcap 100 lost 1.4%. Market breadth was skewed, with more than 2 declining shares for every advancer on NSE. This reflects rising caution among investors, especially with the rupee hitting fresh lows.
Rupee Movement
The rupee weakened further, closing at 87.68 per USD. This marked its fifth consecutive day of decline as fears of higher import bills and inflation grew. Although the Reserve Bank of India was seen intervening intraday, its actions were aimed more at containing volatility than reversing the trend.
Global traders highlighted that the rupee’s weakness is tied to U.S. trade policy uncertainty. With new tariffs set to roll out on Indian exports, dollar demand surged from importers, weighing further on the currency. Exporters, however, are likely to benefit in the short run.
Sectoral Performance
Banking & Financials
Banks bore the brunt of the sell-off. The Bank Nifty closed below 55,200 with heavyweights like HDFC Bank and ICICI Bank losing over 1.5% each. Rising currency volatility and FII outflows added to the pressure. PSU banks also saw profit-taking after their recent rally.
FMCG
Fast-moving consumer goods stocks outperformed on a defensive bid. HUL, ITC, and Nestlé managed to limit declines as investors sought shelter in consumption-oriented plays. This defensive shift highlights investor caution amid currency headwinds.
Metals & Cyclicals
Metals, autos, and realty lagged as export outlook worsened under tariff uncertainty. Tata Steel, JSW Steel, and Hindalco dropped 2–3% each. Realty corrected on fears of higher borrowing costs if imported inflation spikes.
Information Technology
IT stocks traded mixed. Infosys and TCS slipped as rupee stability failed to offset worries about weak global tech spending. However, selective midcap IT stocks remained resilient on deal wins.
Stocks in Focus
- IndiGo (InterGlobe Aviation): Active on buzz of capacity expansion and demand recovery.
- Max Healthcare: Supported by steady occupancy trends and positive earnings outlook.
- IDBI Bank: In spotlight ahead of divestment-related announcements.
- Indian Hotels: Attracted investor interest on optimism around festive bookings and tourism demand.
FII & DII Flows
Foreign Institutional Investors (FIIs) remained net sellers, pulling out over ₹1,500 crore from Indian equities on 26 Aug. This marked the fourth straight session of FII selling. Domestic Institutional Investors (DIIs), however, tried to cushion the fall with net inflows of about ₹1,000 crore. Persistent FII selling remains a key concern for liquidity-sensitive sectors.
Commodities Snapshot
Crude Oil: Brent crude hovered around $82/bbl, capping upside for OMCs. Rising input costs could weigh on downstream companies if the rupee continues to weaken.
Gold: Prices stayed firm near $2,340/oz as investors moved towards safe havens amid trade tensions.
Base Metals: Copper and aluminium traded range-bound awaiting fresh demand cues from China.
Technical Analysis
The Nifty formed a bearish candle on the daily chart. Support is seen at 24,650–24,700. A close below this zone could open the gates for 24,500. Resistance remains at 24,950–25,100. Bank Nifty support lies near 55,000 while resistance is at 56,000.
Options data showed heavy call writing at 25,000 and 25,200 strikes, limiting upside. Significant put writing at 24,700 suggests traders view it as an immediate support.
Derivatives & Volatility
India VIX rose 4% to 14.7, highlighting rising uncertainty. Analysts suggest maintaining light positions with strict stop-losses. Derivatives data signals a trading range of 24,650–25,100 for the coming sessions.
Outlook for Wednesday
The overall market tone remains cautious as tariff worries and rupee weakness dominate sentiment. Traders should track global developments and currency movement closely. A sustainable rally is possible only if Nifty closes above 25,000 with strong volumes. Until then, stock-specific action in defensives like FMCG, pharma, and autos may continue to dominate.
For long-term investors, the correction may provide opportunities in quality names with strong fundamentals. However, near-term volatility is expected to persist.
Internal Links
👉 Also Read: Pre-Market Report 26 Aug 2025
👉 Weekly Wrap: Weekly Market Report ending 22 Aug 2025
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