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Downward journey continues over Dalal Street for 3rd straight day
Aug-29-2025

Indian equity benchmarks fell on Friday, extending their downward journey to the third day, as investors continued to reel under pressure caused by the imposition of high tariffs and relentless foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,856.51 crore on Thursday, according to exchange data. 

Some of the important factors in trade:

Rupee hits all-time low: Indian rupee breached the 88-mark for the first time and closed at an all-time low against the US dollar, amid heightened Indo-US trade deal tensions. Moreover, a negative trend in domestic equities dented market sentiments.

US tariff hike to moderate India's growth by 0.5%: Former Commerce and Home Secretary G K Pillai has said that a steep 50 per cent tariff imposed by the US on shipments from India would have a very small impact on India's economic growth of about 50 basis points if exporters are unable to find alternative markets. 

US tariff uncertainties pose downside risk to demand in Indian economy: RBI Bulletin has indicated downside risk to the overall demand in the Indian economy owed to persisting uncertainties related to the US trade policies. 

India industrial output growth at 3.5% in July: India's industrial production growth accelerated to a 4-month high of 3.5 per cent in July this year due to good performance of manufacturing sector. The country's industrial output earlier recorded this level of growth at 3.9 per cent in March 2025.

Global front: European markets were trading lower, while Asian Markets finished mostly lower as caution prevailed ahead of a key U.S. inflation report due later in the day that might show core personal consumption expenditures prices rose 2.9 percent in July, the fastest pace in five months. 

Finally, the BSE Sensex fell 270.92 points or 0.34% to 79,809.65 and the CNX Nifty was down by 74.05 points or 0.30% to 24,426.85.    

The BSE Sensex touched high and low of 80,310.74 and 79,741.76 respectively. There were 16 stocks advancing against 14 stocks declining on the index.  

The broader indices ended in red; the BSE Mid cap index fell 0.41%, while Small cap index was down by 0.29%.

The top gaining sectoral indices on the BSE were FMCG up by 0.90%, Consumer Durables up by 0.34%, Capital Goods up by 0.22%, Industrials up by 0.21% and Power up by 0.07%, while Realty down by 1.33%, Energy down by 1.01%, IT down by 0.94%, Auto down by 0.84% and Oil & Gas down by 0.77% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.26%, Bharat Electronics up by 1.47%, Trent up by 1.43%, Larsen & Toubro up by 1.12% and Kotak Mahindra Bank up by 1.07%. On the flip side, Mahindra & Mahindra down by 2.96%, Reliance Industries down by 2.21%, Infosys down by 2.04%, NTPC down by 1.03% and Tata Motors down by 0.98% were the top losers.

Meanwhile, RBI Bulletin has indicated downside risk to the overall demand in the Indian economy owed to persisting uncertainties related to the US trade policies. It added that the near-term inflation outlook has become more benign than anticipated earlier driven by muted food price pressures supported by favourable base effects. Further, India's sovereign rating upgrade by S&P bodes well for capital inflows and sovereign yields, going forward.

Moreover, favourable rainfall and temperature conditions will support kharif agriculture season and an increase in real rural wages may aid rural demand in the second half of the financial year. Coupled with the benign financial conditions, ongoing transmission of rate cuts, supportive fiscal measures and rising household optimism, the environment is conducive for holding up aggregate demand.

In July, Reserve Bank of India (RBI) said that domestic economic activity remained mixed across sectors and the timely progress of monsoon has boosted kharif sowing. Meanwhile, industrial activity remained subdued, manufacturing sector expanded along with services sector sustaining the growth momentum. Further, headline inflation fell for the ninth consecutive month in July, while financial conditions remained congenial and supportive of domestic economic activity.

The CNX Nifty touched high and low of 24,572.45 and 24,404.70 respectively. There were 23 stocks advancing against 27 stocks declining on the index.   

The top gainers on Nifty were ITC up by 2.15%, Shriram Finance up by 1.79%, Bharat Electronics up by 1.53%, Larsen & Toubro up by 1.26% and Asian Paints up by 1.25%. On the flip side, Mahindra & Mahindra down by 2.89%, Reliance Industries down by 2.16%, Infosys down by 2.07%, Apollo Hospital down by 1.51% and Adani Enterprises down by 1.20% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 25.47 points or 0.28% to 9,191.35, France’s CAC fell 36.8 points or 0.47% to 7,725.80 and Germany’s DAX lost 110.22 points or 0.46% to 23,929.70.

Asian Markets finished mostly lower on Friday, as investors adopted a cautious stance ahead of the release of the US personal consumption expenditures (PCE) index. sentiments also weak with the ongoing tariff concerns, and mixed economic signals across the region. Japan's Nikkei slipped with the disappointing Japanese industrial output numbers, and stronger local currency yen. However, some losses remained trimmed with the strength in Chinese tech stocks and Hong Kong markets were offset by broader worries about global trade and economic growth.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,857.93

14.33

0.37

Hang Seng

25,077.62

78.8

0.32

Jakarta Composite

7,830.49

-121.60

-1.55

KLSE Composite

1,575.12

-11.95

-0.75

Nikkei 225

42,718.47

-110.32

-0.26

Straits Times

4,269.70

15.92

0.37

KOSPI Composite

3,186.01

-10.31

-0.32

Taiwan Weighted

24,233.10

-3.35

-0.01
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