Frontline indices, the Sensex and the Nifty 50, ended with significant losses on Thursday, August 28, extending their decline to the second consecutive session amid concerns that the 50 per cent US tariffs on Indian goods could dent the country’s economic growth by up to 1 per cent if they persist for a longer period.
The Sensex closed with a loss of 706 points, or 0.87 per cent, at 80,080.57, while the Nifty 50 settled 211 points, or 0.85 per cent, lower at 24,500.90. The BSE Midcap and Smallcap indices crashed by 1.09 per cent and 0.96 per cent, respectively.
Investors lost about ₹4 lakh crore in a day as the overall market capitalisation of BSE-listed firms dropped to ₹445 lakh crore from ₹449 lakh crore in the previous session.
Indian stock market: 10 key highlights from the day
1. Why did the Indian stock market fall for the second consecutive day?
The major reason behind the market fall over the last two days is a 50 per cent US tariff on Indian goods. However, market sentiment has been weak since late June due to foreign capital outflow, stretched valuations, and India Inc.’s unimpressive earnings.
“Domestic equities ended lower as pessimism took hold following the implementation of tariffs on Indian goods, dampening investor sentiments,” said Vinod Nair, Head of Research, Geojit Investments Limited.
“While the cotton import duty exemption briefly lifted hopes of policy support to counter tariff impacts, triggering a short-lived intraday recovery, investor mood remained fragile, with large caps declining and mid and small caps underperforming amid risk-off sentiment,” Nair said.
2. Top losers in the Nifty 50 index
As many as 36 stocks ended in the red in the Nifty index, among which Shriram Finance (down 3.94 per cent), HCL Technologies (down 2.85 per cent), and Power Grid Corporation of India (down 2.04 per cent) were at the top.
3. Top gainers in the Nifty 50 index
Shares of TITan Company (up 1.06 per cent), Coal India (up 0.68 per cent), and Hero MotoCorp (up 0.65 per cent) were the top gainers.
4. Sectoral indices today
Barring Nifty Consumer Durables (up 0.56 per cent), all sectoral indices ended with losses. Nifty Bank, Financial Services, PSU Bank, Private Bank, Realty, IT, and FMCG, all ended with losses of over a per cent.
5. Most active stocks in terms of volume
Ola Electric Mobility (77.94 crore shares), Vodafone Idea (63.09 crore shares), and RattanIndia Enterprises (8.33 crore shares) were the most active stocks in terms of volume on the NSE.
6. 21 stocks defy weak market sentiment, jump over 10% on BSE
As many as 21 stocks, including Shakti Press, Gorani Industries, Titan Biotech, GSS Infotech, and Alphalogic Industries, jumped over 10 per cent on the BSE despite the market selloff.
7. Advance-decline ratio
Out of 4,258 stocks traded on the BSE, 1,458 advanced, while 2,651 declined. Some 149 stocks remained unchanged.
8. 141 stocks hit 52-week lows
REC, AAVAS Financiers, AIA Engineering, HFCL, Jindal Saw and Praj Industries, Cohance Lifesciences, and Five-Star Business Finance were among the 141 stocks that hit their 52-week lows during the session on the BSE.
9. 102 stocks hit 52-week highs
As many as 102 stocks, including Maruti Suzuki India, UNO Minda, FSN E-Commerce Ventures (Nykaa), Eicher Motors, and TVS Motor Company, hit their 52-week highs on the BSE.
10. Nifty’s technical outlook
According to Shrikant Chouhan, the head of equity research at Kotak Securities, the Nifty 50 formed a bearish candle on the daily charts, while on intraday charts, it is showing a lower top formation, which is largely negative.
“We believe that the short-term market outlook is weak, but since it is oversold, a quick pullback rally from the current levels cannot be ruled out,” said Chouhan.
“For day traders, 24,600 would be a key level. As long as the market remains below this, the weak sentiment is likely to continue. On the lower side, the market could slip to 24,350–24,300,” said Chouhan.
“On the flip side, if the market moves above 24,600, the pullback could extend up to the 20-day SMA (simple moving average) or 24,725. Further upside may also continue, potentially lifting the market up to 24,800,” Chouhan said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
