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Informist, Friday, Aug. 29, 2025

 

By Simran Rede

 

MUMBAI – Benchmark equity indices in India fell for the third consecutive session while ending the week and the month on a negative note. Various negative global cues weighed on the Indian equity market. Along with the additional 25% US tariffs, the rupee hitting a record low against the dollar Friday and slumping below the psychologically crucial 88-per-dollar mark dampened investor sentiment, analysts said. The rupee hit a lifetime low of 88.3100 a dollar during the day and closed slightly off lows at 88.1950 per dollar. 

 

After a slightly choppy session, the market closed in the red as traders sold at higher levels. The Nifty 50 closed at 24426.85, down 74.05 points or 0.3%. The BSE Sensex ended at 79809.65, down 270.92 points or 0.3%. Indices ended lower for the second straight month. During the week, the extra 25% US tariffs drove the sell-off in the market.

 

Reliance Industries, which has the highest weight in the Nifty 50, pulled down the index. The stock fell after RIL Chairmam Mukesh Ambani said he plans to file for the initial public offering of Reliance Jio Infocomm Ltd. and get the company listed by the first half of calendar year 2026. The sentiment for the stock suddenly turned negative after it was revealed that shareholders of Reliance Industries will not get anything in the upcoming Reliance Jio IPO, according to a report by TV channel NDTV Profit. The stock closed over 2% lower and was the second-worst hit on the Nifty 50. 

 

While the benchmarks fell, the mid- and small-cap indices underperformed more, particularly affected by risk aversion and stretched valuations, Vinod Nair, head of research at Geojit Investments, said in a note. The Nifty Midcap 50 was the worst performer, ending down 0.7%. Nifty Smallcap 100, Nifty Smallcap 50, and Nifty Midcap 150 closed lower for the sixth consecutive session, while Nifty Smallcap 250, Nifty Midcap 100, and Nifty Midcap 50 ended in the red for the third day.

 

Along with the correction in the US dollar, the recent rally in US Treasury yields on the back of growing optimism over rate cut in September continued to fuel pessimism in the market. Concerns over the Federal Reserve's independence and growing bets of a rate cut by the US central bank in September weighed on the dollar, a head of research at a domestic brokerage said. All global markets reacted to their individual economic data sets amid rising uncertainty due to tariffs and trade tensions.

 

Most sectoral indices ended the session lower, except Nifty FMCG, Nifty Media, and Nifty Consumer Durables. The fast-moving consumer goods stocks showed their defensive nature in a weak market due to their  minimal exposure to US tariffs and support from expectations of goods and service tax rate rationalisation, which is expected to boost consumer demand. 

 

FMCG stocks rose amid media reports saying that the government has finalised cutting GST on select consumer products to 5%. The Nifty FMCG index rose as much as 1%, with 11 out of 15 constituents ending higher. Colgate-Palmolive, United Spirits, and ITC led the gains with a 2.3% rise. The FMCG index closed higher for the second straight month and has reversed all the losses in almost six months.

 

Nifty Realty and Nifty Oil & Gas closed over 1% lower each and were the worst-hit sectoral indices. The nervousness among market participants cooled down after the additional tariffs came into effect. The fear gauge of the market, India VIX, closed 3.5% lower at 11.7525. However, the market ended lower amid high volatility throughout August, primarily due to US tariffs, rising crude oil, and uncertainty around trade deals. 

 

CG Power and Industrial Solutions rose nearly 5?ter its subsidiary CG Semi launched a semiconductor unit and announced investing INR 76 billion over five years to develop its semiconductor facilities. The stock was the top gainer on the Nifty 200. YES Bank rose over 2% after reports said Sumitomo Mitsui Banking Corp. will likely infuse more funds into the private sector lender. It was among the biggest gainers on the Nifty 200. Sammaan Capital rose over 5% and snapped a four-day losing run after the stock was included in the futures and options segment from Friday, CNBC TV18 reported. It was the second-best performer in the Nifty 500.  End

 

Edited by Tanima Banerjee

 

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