Stock market benchmark indices Sensex and Nifty tumbled in early trade on Thursday (August 28, 2025) as the additional 25% tariff imposed by U.S. President Donald Trump on India for its purchases of Russian oil came into effect, weighing on investors’ sentiment. Besides this, foreign fund outflows also dented investors’ sentiment.

The additional 25% tariff imposed by the U.S. on India came into effect on Wednesday (August 27, 2025), bringing the total amount of levies imposed on New Delhi to 50%.

The 30-share BSE Sensex tanked 508.16 points to 80,278.38 in early trade. The 50-share NSE Nifty dived 157.35 points to 24,554.70.

From the Sensex firms, HCL Tech, HDFC Bank, Power Grid, Sun Pharma, NTPC and Bharat Electronics were among the major laggards.

However, Eternal, Asian Paints, Titan, Maruti and Larsen & Toubro were the gainers.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index traded in positive territory while Hong Kong’s Hang Seng quoted lower. The U.S. markets ended in positive territory on Wednesday (August 27, 2025).

“The 50% tariff imposed on India, which has already come into effect, will weigh on market sentiments in the near-term. But the market is unlikely to panic since the market will view these high tariffs as a short-term aberration which will be resolved soon,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

The real challenge before the market is the high valuations and the tepid earnings growth, he said.

“The strong pillar of support to the market is the aggressive buying by DIIs (Domestic Institutional Investors) flush with funds. Any selling by FIIs will be easily neutralised by the aggressive buying by DIIs,” Vijayakumar added.

Global oil benchmark Brent crude dipped 0.76% to $67.53 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹6,516.49 crore on Tuesday, according to exchange data. DIIs, however, bought stocks worth ₹7,060.37 crore.

The domestic equity markets were closed on Wednesday (August 27, 2025) on account of Ganesh Chaturthi.

On Tuesday (August 26, 2025), the Sensex tanked 849.37 points or 1.04% to settle at 80,786.54, and the Nifty dropped 255.70 points or 1.02% to 24,712.05.

Equity benchmark indices Sensex and Nifty tumbled in early trade on Friday (July 25, 2025) dragged down by Bajaj Finance and persistent foreign fund outflows.

A weak trend in Asian markets also dented investors’ sentiment.

The 30-share BSE Sensex dropped 407.45 points to 81,776.72 in early trade. The 50-share NSE Nifty declined 144.3 points to 24,917.80.

From the Sensex firms, Bajaj Finance tanked nearly 6% post its June quarter earnings announcement. Bajaj Finserv fell by over 4 per cent.

Tata Steel, Hindustan Unilever, Mahindra & Mahindra, UltraTech Cement, Power Grid and Maruti were also among the laggards.

However, Eternal, ICICI Bank, HCL Tech and State Bank of India were the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,133.69 crore on Thursday (July 24, 2025), according to exchange data. However, Domestic Institutional Investors (DIIs) bought stocks worth ₹2,617.14 crore.

“The near-term market construct has turned weak. Sustained FII selling of ₹11,572 crore in the last four trading days will weigh on the market,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

In Asian markets, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng quoted lower while South Korea’s Kospi traded in positive territory.

The U.S. markets ended on a mixed note on Thursday (July 24, 2025).

India and the U.K. signed a landmark free trade agreement on Thursday (July 24, 2025), which, starting next year, will see 99 per cent of Indian exports enter the U.K. duty-free, while reducing tariffs on British products such as cars and whisky.

The deal, which comes days ahead of the U.S. moratorium on higher tariffs coming to an end, aims to double the USD 56 billion trade between the world’s fifth and sixth largest economies by 2030.

“The India-UK FTA, which is India’s first comprehensive trade agreement with a major developed country, has two implications from the market perspective. One, this FTA will significantly boost trade between both countries, which will be seen as a positive by the market. Two, this FTA along with many other FTAs signed by India with other countries, projects India as a nation committed to free trade. The fact that this FTA has come during a time of tariff wars is commendable, and hopefully this will improve India’s chances of striking a fair-trade deal with the U.S.,” Vijayakumar added.

Sectors like textiles, leather, food processing, automobiles, pharmaceuticals and gems and jewellery, which are expected to benefit from the FTA, will be on the market radar, he said.

Global oil benchmark Brent crude climbed 0.39% to $69.45 a barrel.

On Thursday, the Sensex tanked 542.47 points or 0.66% to settle at 82,184.17. The Nifty dropped 157.80 points or 0.63% to 25,062.10.