Benchmark indices Sensex and Nifty declined in early trade on Tuesday (August 26, 2025) after the U.S. issued a draft discover over the implementation of an additional 25% tariff on Indian imports.
Additionally, persistent overseas fund outflows and a weak development in Asian markets additionally dampened sentiment.
The 30-share BSE Sensex tumbled 606.97 factors or 0.74% to 81,028.94 in early trade. The 50-share NSE Nifty went decrease by 182.25 factors or 0.73% to 24,785.50.
From the Sensex corporations, Sun Pharmaceutical, Tata Steel, Adani Ports, ICICI Bank, Bharti Airtel, Power Grid, Bharat Electronics Ltd, HDFC Bank, NTPC and Tata Motors had been the laggards.
Hindustan Unilever and Tata Consultancy Services had been the one gainers.
On Monday (August 25, 2025), the United States issued a draft order implementing an additional 25% tariff on Indian imports, which President Donald Trump had introduced earlier, starting August 27.
According to the draft discover launched by the Department of Homeland Security, the additional tariffs will cowl Indian merchandise “that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025”.
The discover defined that the upper levies had been linked to “threats to the U.S. by the government of the Russian Federation,” with India focused in line with that technique.
“The biggest headwind for Indian markets remains whether Nifty can scale the ‘Wall of Worry’ around the 50% Mr. Trump tariff set to kick in on August 27, which threatens to make almost all of India’s $86.5 billion exports to the U.S. commercially unviable,” Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, stated.
Moreover, Tapse stated, RBI Governor Sanjay Malhotra has assured coverage motion if U.S. tariffs damage home development.
In Asian markets, Japan’s Nikkei 225 index, South Korea’s Kospi, and Hong Kong’s Hang Seng had been buying and selling decrease whereas Shanghai’s SSE Composite index was quoted in optimistic territory.
U.S. markets ended decrease in in a single day offers on Monday.
Foreign Institutional Investors offloaded equities price ₹2,466.24 crore on Monday (August 25, 2025), in accordance to the trade information.
“Despite sluggish earnings growth and headwinds like high tariffs, the market continues to be resilient. Resilient market co-existing with tepid earnings growth has made India the most expensive market in the world.
“Consequently, FIIs have been sustained sellers, however huge DII (Domestic Institutional Investor) shopping for, completely eclipsing FII promoting, is supporting the market even amidst robust headwind,” VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said.
Since the principal reason for the market’s resilience is liquidity and liquidity flows are likely to sustain, the market is unlikely to correct significantly, and the elevated valuations may continue, Vijayakumar added.
Global oil benchmark Brent crude was trading 0.48 per cent lower at USD 68.47 per barrel.
On Monday, the 30-share BSE Sensex climbed 329.06 points to settle at 81,635.91. The 50-share NSE Nifty rose by 97.65 points to close at 24,967.75.
