Post-Market Report (27 Aug 2025): Tariff fears drag indices
Closing Summary
Indian equities ended sharply lower on 27 August 2025 as the imposition of steep U.S. tariffs on Indian goods triggered broad-based selling pressure across most sectors. The Nifty 50 slipped nearly 160 points to close at 24,720, while the Sensex lost around 480 points, ending near 81,250. The Bank Nifty, a key indicator of financial sector strength, underperformed and fell 1.2% to settle at 55,280.
Market breadth was negative with over 1,400 stocks declining on the NSE against 650 advancing. Volatility index (India VIX) surged 5% intraday as traders rushed to hedge positions, highlighting the fear-driven environment.
Global Market Recap
Globally, sentiment remained weak. Overnight, U.S. equities managed mild gains on the Dow and S&P 500, but tech stocks lagged. In Europe, the FTSE 100 and DAX slipped amid worries of a slowdown in global trade. Asian peers reflected caution: Japan’s Nikkei closed lower by 0.8%, Hong Kong’s Hang Seng slumped 1.1%, and Shanghai Composite edged down by 0.4%.
Global commodity prices remained volatile, with crude oil fluctuating near $78 per barrel. Gold gained traction as a safe haven, while copper and other industrial metals corrected on fears of weaker demand.
Sectoral Performance
Banks & Financials
Banking stocks dragged indices lower. HDFC Bank, ICICI Bank, and Kotak Bank all slipped over 1%, pressured by FII selling and weakening investor confidence. PSU banks were also under pressure as global borrowing costs rise.
IT
Infosys and TCS outperformed on a weak rupee, which is positive for export revenues. However, caution remains as U.S. clients may cut discretionary spending if tariffs escalate into broader trade wars.
FMCG & Pharma
Defensive names such as HUL, ITC, and Sun Pharma attracted buying, helping limit the index’s downside. In uncertain times, investors often rotate capital into defensive sectors.
Metals & Autos
Metals were among the hardest hit, with Tata Steel and Hindalco correcting sharply on tariff implications. Auto majors like Maruti Suzuki and Tata Motors declined on concerns about export markets and higher input costs.
Bank Nifty Heatmap
| Top Gainers | Price (₹) | % Change |
|---|---|---|
| SBI | 826.20 | +1.2% |
| AXISBANK | 1166.50 | +1.0% |
| Top Losers | Price (₹) | % Change |
|---|---|---|
| HDFCBANK | 1580.40 | -1.5% |
| ICICIBANK | 1185.75 | -1.2% |
| KOTAKBANK | 1790.00 | -0.9% |
FII/DII Activity
FIIs sold equities worth ₹5,200 crore on 27 Aug, extending their outflow streak. Rising U.S. bond yields and tariff risks pushed them to cut exposure. DIIs stepped in with net buying of about ₹4,800 crore, limiting losses but not reversing sentiment. Mutual funds bought selectively in IT and FMCG while trimming metals exposure.
Rupee & Commodities
The rupee traded in a narrow range and closed flat at 87.05 against the U.S. dollar. RBI is suspected to have intervened intraday to prevent sharp volatility. Crude oil hovered near $78/bbl, while gold gained 0.6% to $1,980/oz. Silver also rose, reflecting global risk aversion.
Stocks in Focus
- Reliance Industries: Declined over 1% as energy prices fluctuated and global risk appetite weakened.
- Infosys: Closed higher by 0.8% as rupee weakness boosted export optimism.
- HDFC Bank: Dragged Bank Nifty lower, falling 1.5% amid heavy FII selling.
- Tata Motors: Slipped nearly 2% as concerns over global auto exports weighed.
- SBI: Outperformed peers, ending up 1.2% on steady retail loan growth trends.
Technical Outlook
On charts, Nifty formed a bearish candle near 24,720. Key support levels are placed at 24,600 and 24,450, while resistance is seen at 24,950 and 25,100. A break below 24,600 could trigger more downside, while sustained trade above 25,000 may revive bullish momentum. Bank Nifty’s immediate support is 55,000, resistance around 56,000.
Key Takeaways
- Nifty slipped 160 pts to 24,720; Sensex fell 480 pts to 81,250.
- Bank Nifty underperformed, losing 1.2%.
- Metals and Autos led declines; FMCG and IT cushioned losses.
- FIIs sold ₹5,200 cr; DIIs bought ₹4,800 cr.
- Rupee steady; gold up on safe-haven demand.
- Volatility surged, suggesting cautious trade ahead.
0 Comments