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EQUITY
Key gauges end lower on Tuesday
Aug-26-2025

Indian equity benchmarks ended lower with losses of over a percent on Tuesday, due to widespread selling pressure after the US issued a draft notice over the implementation of an additional 25 per cent tariff on Indian products. Besides, persistent foreign fund outflows and a weak global trend also dampened investors' sentiment. 

Some of the important factors in today’s trade: 

Rupee falls against US Dollar: Indian rupee depreciated against the US dollar, tracking weak domestic markets after the US issued a draft notice on plans to implement an additional 25 per cent tariff on Indian products.

India, Fiji firm up action plan to boost defence ties; ink seven pacts: India and Fiji have firmed up an action plan to boost defence ties and agreed to jointly work for a peaceful and inclusive Indo-Pacific as Prime Minister Narendra Modi and his Fijian counterpart Sitiveni Ligamamada Rabuka held talks to expand the overall bilateral cooperation. 

Sales of listed private NFCs grew leisurely at 5.5% in Q1FY26: The data released by Reserve Bank of India (RBI) has indicated a leisurely growth pace in sales of listed private non-financial companies (NFC) at 5.5% in first quarter of 2025-26 compared to 6.9% in the year-ago period.

Auto dealers seek early implementation of new GST regime: Automotive dealer's body FADA has sought early implementation of the new GST structure to avoid losses for the industry during the lucrative festive period, with customers postponing purchases amid hopes of a price cut on vehicles under the new regime. 

Weak global cues: European markets were trading lower due to geopolitical concerns and uncertainty about tariffs. Asian markets settled mostly down as Fed independence fears resurfaced and investors awaited Nvidia results amid hopes it can soothe fears about AI spending. 

Finally, the BSE Sensex fell 849.37 points or 1.04% to 80,786.54 and the CNX Nifty was down by 255.70 points or 1.02% to 24,712.05.   

The BSE Sensex touched high and low of 81,450.28 and 80,685.98 respectively. There were 5 stocks advancing against 25 stocks declining on the index.  

The broader indices ended in red; the BSE Mid cap index fell 1.34%, while Small cap index was down by 1.68%.

The lone gaining sectoral index on the BSE was FMCG up by 0.59%, while Realty down by 2.24%, Metal down by 2.10%, Telecom down by 2.04%, Energy down by 1.68% and Healthcare down by 1.65% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.38%, Maruti Suzuki up by 1.85%, ITC up by 0.93%, TCS up by 0.49% and Ultratech Cement up by 0.19%. On the flip side, Sun Pharma down by 3.40%, Tata Steel down by 2.88%, Bajaj Finance down by 2.67%, Trent down by 2.45% and Mahindra & Mahindra down by 2.02% were the top losers.

Meanwhile, the data released by Reserve Bank of India (RBI) has indicated a leisurely growth pace in sales of listed private non-financial companies (NFC) at 5.5% in first quarter of 2025-26 compared to 6.9% in the year-ago period. The RBI released the data on the performance of the private corporate sector during the first quarter of 2025-26, drawn from abridged quarterly financial results of 3,079 listed private non-financial companies.

During the first quarter of the current fiscal, aggregate sales growth of 1,736 listed private manufacturing companies moderated further to 5.3% as compare to 6.6% in the previous quarter, mainly dragged by the weak performance of the petroleum industry. Meanwhile, sales growth of IT firms declined to 6% in Q1 of 2025-26 from 8.6% in the previous quarter, reversing the upward trend seen since the first quarter of 2024-25. In contrast, sales growth of non-IT services companies moderated to 7.5% in Q1 of 2025-26, after recording double-digit growth in the previous three quarters, primarily due to lower sales growth recorded by the transport and storage companies.

Further, raw material expense of manufacturing companies witnessed slower growth 4.5% in Q1 of 2025-26 as compared to 8.3% in the previous quarter, in tandem with a moderation in sales growth. Therefore, the raw material to sales ratio moderated to 54.1% during the period as compared to previous quarter. Meanwhile, staff costs of manufacturing, IT and non-IT services companies rose by 8.3%, 5.8% and 8.0%, respectively, during the period, lower than the growth recorded during the previous quarter. Also, operating profit growth of manufacturing and non-IT services companies moderated to 6.9% and 11.3%, respectively, while it improved to 5.4% for IT companies during Q1 from the previous quarter.

The CNX Nifty touched high and low of 24,919.65 and 24,689.60 respectively. There were 8 stocks advancing against 41 stocks declining, while 1 stock remained unchanged on the index.  

The top gainers on Nifty were Eicher Motors up by 2.68%, Hindustan Unilever up by 2.32%, Maruti Suzuki up by 1.85%, ITC up by 1.00% and Nestle up by 0.54%. On the flip side, Shriram Finance down by 4.03%, Sun Pharma down by 3.35%, Tata Steel down by 2.87%, Bajaj Finance down by 2.75% and Trent down by 2.45% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 45.53 points or 0.49% to 9,275.87, France’s CAC fell 111.54 points or 1.42% to 7,731.50 and Germany’s DAX lost 66.22 points or 0.27% to 24,206.90. 

Asian markets settled mostly down on Tuesday as Fed independence fears resurfaced after US President Donald Trump took the unprecedented action of removing Federal Reserve Governor Lisa Cook following allegations that she falsified mortgage documents. Chinese and Hong Kong shares declined after US President Donald Trump threatened 200% tariffs on China if Beijing does not export rare-earth magnets to the US amid an extended trade truce. Japanese shares fell sharply as the yen gained, while Wall Street's overnight fall also dampened sentiments. Seoul shares dropped after Trump said a 15% tariff on imports from South Korea will remain unchanged. Meanwhile, investors were cautiously awaiting a key US inflation report. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,868.38

-15.18

-0.39

Hang Seng

25,524.92

-304.99

-1.18

Jakarta Composite

7,905.76

-21.15

-0.27

KLSE Composite

1,581.59

-20.86

-1.30

Nikkei 225

42,394.4

-413.42

-0.97

Straits Times

4,243.71

-12.78

-0.30

KOSPI Composite

3,179.36

-30.50

-0.96

Taiwan Weighted

24,305.10

27.72

0.11
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