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Indian markets end holiday shortened week in red amid concerns about impact of U.S. tariffs
Aug-29-2025

Indian markets ended the holiday shortened week in red amid mounting concerns about impact of U.S. tariffs on Indian goods. The additional 25% tariff imposed by US President Donald Trump on India for purchases of Russian oil came into effect from August 27, 2025. However, losses remained capped as India’s industrial output growth accelerated to a 4-month high of 3.5% in July. 

Some of the major developments during the week are:

India’s industrial output growth accelerates to 4-month high in July: India’s industrial output growth, measured in terms of the Index of Industrial Production (IIP), accelerated to a 4-month high of 3.5% in July 2025 due to good performance of manufacturing sector. IIP had expanded by 5% in July 2024.

Fitch Ratings affirms India’s sovereign rating at ‘BBB-’ with stable outlook: Fitch Ratings has affirmed India’s sovereign rating at ‘BBB-', with a stable outlook. It said India has a strong record of delivering growth and improving fiscal credibility, which will drive improvements in structural metrics.

India, Australia conclude 11th round of talks for comprehensive trade pact: The commerce ministry has said that India and Australia have concluded another round of negotiations for a comprehensive free trade agreement to strengthen economic ties between the two countries.

India-Africa trade crosses $100 billion in FY25: Union minister Kirti Vardhan Singh said India's bilateral trade with Africa has crossed magical figure of $100 billion in FY25 over $56 billion in FY20. With cumulative investments over $75 billion in 1996-2024, India is among top 5 largest investors in Africa.

Domestic air passenger traffic declines in July: DGCA in its data has showed that domestic air passenger traffic declined 2.94% year-on-year to 1.26 crore in July 2025. The fall in air passenger traffic also came against the backdrop of the fatal Air India Ahmedabad-London Gatwick plane crash on June 12.

BSE movement for the week

The Bombay Stock Exchange (BSE) Sensex slipped 1497.20 points or 1.84% to 79,809.65 during the week ended August 29, 2025. The BSE Midcap index losses 1247.97 points or 2.72% to 44,642.31, while Smallcap index slipped 1553.09 points or 2.93% to 51,449.23. On the sectoral front, S&P BSE Realty was down by 300.84 points or 4.26% to 6,764.68, S&P BSE Finance was down by 391.48 points or 3.14% to 12,086.93, S&P BSE PSU was down by 549.57 points or 2.91% to 18,319.45, S&P BSE Metal was down by 844.51 points or 2.70% to 30,388.49 and S&P BSE Power was down by 174.40 points or 2.66% to 6,392.75 were the top losers, while S&P BSE Fast Moving Consumer Goods was up by 88.49 points or 0.43% to 20610.64 was only gainer on the BSE.

NSE movement for the week

The Nifty slipped 443.25 points or 1.78% to 24,426.85. On the National Stock Exchange (NSE), Nifty Mid Cap 100 decreased 1902.35 points or 3.30% to 55,727.40, Bank Nifty was down by 1493.75 points or 2.71% to 53,655.65, Nifty Next 50 lost 1794.35 points or 2.66% to 65,745.75 and Nifty IT was down by 259.60 points or 0.73% to 35,181.25.

FII transactions during the week

Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week, with gross purchases of Rs 67,608.11 crore and gross sales of Rs 74,473.36 crore, leading to a net outflow of Rs 6,865.25 crore. They also stood as net sellers in the debt segment with gross purchases of Rs 7,840.17 crore against gross sales of Rs 9,225.24 crore, resulting in a net outflow of Rs 1,385.07 crore. In hybrid segment, FIIs stood as net buyers, with gross purchases of Rs 437.39 crore and gross sales of Rs 321.09 crore, leading to a net inflow of Rs 116.30 crore. (Provisional)

Industry and Economy

Crisil in its latest report has said that uncertainties surrounding the US tariffs might be a new hindrance to capital expenditure decisions in FY26. The additional 25% tariff imposed by US President Donald Trump on India for its purchases of Russian oil came into effect on August 27, 2026, bringing the total amount of levies imposed on New Delhi to 50%. It said that the government has so far been driving investments, with private corporate capital expenditure remaining muted. According to the report, the imposition of tariffs is likely to hit sentiments, even as healthy corporate balance sheets support fresh investments. It noted the opportunities stem from new trade agreements, like the FTA with the UK, and the ability of the corporate houses to invest. 

Outlook for the coming week

Indian markets ended the passing week with hefty losses as U.S. President Donald Trump's 50 percent tariffs on Indian goods came into effect from August 27, 2025.

The coming week marks the start of a fresh month. In stock-specific activity, auto companies will grab some attention, as these companies will declare their monthly sales figures in the up-coming week. Investors will be looking forward HSBC Manufacturing PMI Final, which scheduled to be release on September 01, HSBC Composite PMI Final, HSBC Services PMI Final are going to be out on September 03.

The Goods and Services Tax (GST) Council will hold its 56th meeting on September 3 and 4, 2025, in New Delhi. 

On the global front, investors will be eyeing macro-economic reports from world’s largest economy, United States, starting with Redbook YoY, S&P Global Manufacturing PMI Final, ISM Manufacturing PMI on September 02 followed by Balance of Trade, Initial Jobless Claims, S&P Global Composite PMI Final, S&P Global Services PMI Final, ISM Services PMI on September 04, Baker Hughes Oil Rig Count on September 05.

Top Gainers 

  • Maruti Suzuki India up by 3.58% was the top gainer on Nifty for the week - Maruti Suzuki India started production of first Battery Electric Vehicle, e VITARA, for sales in over 100 countries, at its wholly owned subsidiary -- Suzuki Motor Gujarat. e VITARA is slated to be the largest mass-produced and exported electric vehicle from India. A preview of the e VITARA has been done earlier in Milan, Italy and at Bharat Mobility Global Expo in New Delhi, India.
  • Eicher Motors up by 2.14% was another top gainer on Nifty for the week - Select auto stocks traded higher amid anticipation of a GST rate cut that could slash vehicle prices by up to 10% before Diwali. The GST Council meeting is likely to be held on September 3-4. There are expectations of lower taxes is creating a peculiar market trend: demand is currently soft. 

Top Losers 

  • Shriram Finance down by 6.38% was the top loser of the week on Nifty - Shriram Finance traded lower as investors booked some profit in the stock. Meanwhile, the company had reported 6.75% rise in consolidated net profit at Rs 2,159.40 crore for Q1FY26 as compared to Rs 2,022.80 crore for Q1FY25. The total income of the company increased by 20.11% at Rs 11,542.44 crore for Q1FY26 as compared to Rs 9,609.71 crore for the corresponding quarter previous year.
  • Adani Enterprises down by 5.57% was another top loser of the week on Nifty - Adani Enterprises edged lower during the passing week as it is reportedly facing profitability challenges amidst long-term growth potential. Meanwhile, the Competition Commission of India (CCI) approved the acquisition of Jaiprakash Associates Limited (JAL) by Adani Enterprises and Adani Infrastructure and Developers through the corporate insolvency resolution process.

Technical viewpoints

During the week, CNX Nifty touched the highest level of 25,084.85 on August 25 and lowest level of 24,404.70 on August 29. On the last trading day, the Nifty closed at 24,426.85 with weekly loss of 443.25 points or 1.78 percent. For the coming week, 24,192.75 followed by 23,958.65 are likely to be good support levels for the Nifty, while the index may face resistance at 24,872.90 and further at 25,318.95 levels.

US Market

The U.S. markets traded higher during the week after real GDP in U.S. shot up by 3.3 percent in second quarter compared to previously reported 3.0 percent surge. Street had expected the jump in GDP to be upwardly revised to 3.1 percent.

Some of the major developments during the week are:

U.S. pending home sales fall more than expected in July: National Association of Realtors said its pending home sales index decreased by 0.4 percent to 71.7 in July. Street had expected pending home sales to edge down by 0.1 percent.

Weekly jobless claims in U.S. edge down to 229,000: Initial jobless claims dipped to 229,000, a decrease of 5,000 in week ended August 23 from the previous week's revised level of 234,000.

U.S. consumer confidence index edges lower in August: The Conference Board said its consumer confidence index dipped to 97.4 in August from an upwardly revised 98.7 in July. Street had expected the consumer confidence index to slip to 96.4.

New home sales in U.S. pull back from upwardly revised level in July: The Commerce Department said new home sales fell by 0.6 percent to an annual rate of 652,000 in July after surging by 4.1 percent to an upwardly revised rate of 656,000 in June.

U.S. durable goods orders slump in July: The Commerce Department said durable goods orders slumped by 2.8 percent in July after plummeting by a revised 9.4 percent in June.

European Market

European markets witnessed selling pressure during the passing week, as the mood remained largely cautious with investors closely following geopolitical news and some crucial economic data from the U.S.

Some of the major developments during the week are:

Eurozone economic confidence weakens in August: The survey results from the European Commission showed that the economic sentiment indicator slid to 95.2 in August from a revised 95.7 in the previous month. 

Switzerland logs weaker growth, trims 2026 outlook: Gross domestic product grew 0.1 percent from the first quarter, unchanged from the flash estimate. Growth softened notably from 0.7 percent in the first quarter.

Italian consumer confidence weakens; business morale remains stable: The survey data from the statistical office Istat showed that consumer sentiment dropped to 96.2 in August from 97.2 in the previous month. 

French consumer sentiment weakest since 2023: The consumer sentiment index edged down to 87 in August from 88 in July. This was the lowest reading since October 2023 and remained below its long-term average of 100.

Spain producer prices rise 0.3%: The provisional data from the statistical office INE showed that the producer price index posted an annual increase of 0.3 percent in July, following a 1.0 percent rebound in June.

Asian Market

Asian markets traded mostly higher during passing week even as caution prevailed ahead of a key U.S. inflation report that might show core personal consumption expenditures prices rose 2.9 percent in July, the fastest pace in five months.

Some of the major developments during the week are:

Japan jobless rate falls to 2.3% in July: The unemployment rate in Japan came in at a seasonally adjusted 2.3 percent in July. That was below expectations for 2.5 percent, which would have been unchanged from the June reading.

Tokyo overall inflation climbs 2.6% on year in August: Overall consumer prices in the Tokyo region of Japan were up 2.6 percent on year in August. That was in line with expectations and down from 2.9 percent in July.

Japan industrial output sinks 1.6% in July: Industrial production in Japan was down a seasonally adjusted 1.6 percent on month in July. That missed expectations for a decline of 1.1 percent following the 2.1 percent increase in June.

Japan retail sales add 0.3% in July: The value of retail sales in Japan was up a seasonally adjusted 0.3 percent on month in July. That misses forecast for an increase of 1.5 percent following the downwardly revised 1.9 percent gain in June.

Bank of Korea holds rates: The Bank of Korea kept its policy rate unchanged at 2.5% for its second straight meeting, as widely expected by economists, and lifted its 2025 growth forecast.
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