Sensex Down 849 Points, Nifty at 24,712; Nifty Prediction for Tomorrow

Indian Markets Close Deep in the Red — What to Expect on August 28

Market Wrap – August 26, 2025

Indian stock markets ended sharply lower on August 26, amid widespread selling pressure triggered by global concerns, domestic headwinds, and technical breakdowns.

Benchmark indices gave up recent gains, with nearly all sectors ending in the red, reflecting a weak undertone in investor sentiment.

The BSE Sensex plunged by 849.37 points, or 1.04%, closing at 80,786.54, while the NSE Nifty 50 fell 255.70 points, or 1.02%, to settle at 24,712.05. This marked one of the steepest single-day losses in recent weeks.

Market breadth was decisively negative. Out of the total traded stocks on the BSE:

• 1,167 stocks advanced
• 2,751 declined
• 125 remained unchanged

This broad-based weakness was not confined to large-caps — even mid- and small-cap stocks witnessed significant selling, reflecting panic across investor segments.

Sectoral Breakdown: FMCG Only Bright Spot

Sectoral indices across the board registered losses, barring the FMCG sector, which managed to end slightly in the green due to defensive buying.

Lagging sectors included:

• PSU Banks: Dragged by profit-booking and valuation concerns
• Metal Stocks: Weak global demand outlook and fears of tariffs
• Pharma: Hit by regulatory concerns and global pressure
• Oil & Gas: Weighed down by declining crude prices and inventory risks
• Consumer Durables & Realty: Both saw selling due to growth concerns and rising interest rate anxieties
• Telecom: Under pressure as competitive intensity rises again

The BSE Midcap index fell 1.3%, and the Smallcap index underperformed with a 1.7% decline, suggesting that risk appetite remains low among retail and institutional participants alike.

Top Nifty Performers and Losers

Gainers:

Despite the market rout, a few defensives and auto majors managed to post gains:

• Eicher Motors: Continued strength in premium motorcycle segment
• Hindustan Unilever (HUL): Defensive buying supported by FMCG resilience
• Maruti Suzuki: Positive sentiment ahead of monthly auto sales data
• Nestle India: Safe-haven demand for consumer staples
• ITC: Remains a favorite due to strong earnings visibility

Losers:

Heavyweights across sectors took a beating:

• Shriram Finance
• Sun Pharma
• Tata Steel
• Bajaj Finance
• Trent

These names faced a combination of sector-specific pressure, weak global cues, and technical sell-offs.

Expert Insights: What’s Driving the Weakness?

1. US Tariff Shock Looms Over Markets

According to Prashanth Tapase, Senior VP (Research) at Mehta Equities Ltd, one of the most significant concerns clouding investor sentiment is the re-imposition of Trump-era tariffs by the US, slated to take effect from August 27.

These proposed tariffs, reportedly as high as 50%, could significantly affect India’s export competitiveness, especially in key categories like textiles, pharmaceuticals, and engineering goods.

“India’s exports to the US total approximately USD 86.5 billion annually. A tariff wall of this magnitude could create ripple effects across industries and disrupt corporate earnings,” Tapase said.

This trade friction, combined with rising global protectionism, is expected to hurt investor confidence and increase volatility in the short term.

2. Technical Weakness Adds to Bearish Mood

Anand James, Chief Market Strategist at Geojit Financial Services, pointed out that the Nifty’s inability to hold above the 25,000–25,033 resistance zone on August 26 is a concerning sign.

“There’s a clear lack of conviction among buyers. If the index falls below 24,870, downside pressure could intensify. A breach below 24,740 may open the doors for a steeper correction,” he warned.

3. Chart Patterns Show Breakdown

Shrikant Chauhan, Head of Equity Research (Retail) at Kotak Securities, highlighted that the benchmark indices not only broke key support levels — 24,850 (Nifty) and 81,300 (Sensex) — but also formed a long bearish candle on the daily charts.

“The market’s intraday action showed a lower top formation, which is a bearish signal. This indicates that sellers are gaining control, and unless there is a swift recovery, further downside is possible,” Chauhan explained.

Key Technical Levels to Watch

Support Zones:

• Nifty: 24,650, followed by 24,550 and 24,500
• Sensex: 80,500, then 80,200 and 80,000

Resistance Levels:

• Nifty: First resistance lies at 24,750, with stronger resistance at 24,850–24,900
• Sensex: Key hurdles are at 81,000 and 81,500

Chauhan’s Strategy:

• Below 24,650 (Nifty) or 80,500 (Sensex): Expect further selling pressure and a potential slide to lower supports
• Above 24,750 (Nifty) or 81,000 (Sensex): A pullback rally toward 24,900–25,000/81,500 is possible, especially if supported by global cues

Global Factors at Play

While domestic issues are contributing to the current weakness, global developments are also playing a critical role:

• Rising US bond yields have triggered outflows from emerging markets
• Crude oil price volatility continues to affect sentiment
• Geopolitical risks, especially in the South China Sea and the Middle East, are prompting a flight to safety
• China’s economic slowdown and disappointing manufacturing data are impacting global metal and commodity stocks

Market Prediction for August 28

Looking ahead to August 28, market direction will be shaped by:

1. Immediate reaction to US tariff implementation
2. FII/DII activity, especially given recent outflows
3. US economic data, including jobless claims and inflation readings
4. Technical behavior near 24,650–24,740 levels on Nifty

While there is scope for a short-term bounce if key support levels hold, broader sentiment remains fragile. Volatility may remain elevated, and traders are advised to remain cautious with tight stop losses.

Bottom Line

After a sharp sell-off on August 26, the Indian markets are at a crucial juncture. Unless there is a strong recovery led by global relief or domestic support measures, the Nifty and Sensex may struggle to regain bullish momentum.

Investors are advised to:

• Stay selective in stock-picking
• Focus on defensive and fundamentally strong sectors like FMCG, auto, and healthcare
• Avoid aggressive long positions until the market shows signs of stability above key moving averages

Volatility is likely to stay elevated — proceed with caution as the market navigates a complex global and domestic landscape.