Nifty falls over 1%
Today’s stock market: Tuesday saw a sharp drop in the Nifty50 and BSE Sensex, two major Indian equity indices, following the United States’ announcement of a draft notification imposing an additional 25% tax on Indian goods. Unfavorable global market conditions and ongoing outflows of foreign funds severely impacted market sentiment.
After dropping 255.70 points (1.02%), the 50-share NSE Nifty ended the day at 24,712.05. It dropped 278.15 points (1.11 percent) to 24,689.60 during intraday trading.
After the Trump administration informed India of extra 25% tariffs that will go into effect tomorrow, bringing the total duty on Indian imports to a staggering 50%, the Indian benchmark stock indices, the Sensex and Nifty, suffered a steep dip on Tuesday, August 26.
In early trading, the Nifty fell 256 points to 24,712, while the Sensex fell 849 points to 80,787.
Only five of the thirty Sensex equities are rising, while twenty-five are falling. Tata Steel is among the 12 shares that are declining 1% to 2.5%. The shares of Maruti and HUL, meanwhile, increased by 2.35%.
Thirteen of the 50 Nifty stocks increased, while 37 fell. With the exception of the NSE FMCG index, all fell. The indices for metal, pharmaceutical, IT, real estate, and banking all saw declines of above 2%.
On August 25, domestic institutional investors contributed by making net purchases of Rs 3,176.69 crore, while foreign institutional investors (FIIs) withdrew Rs 2,466 crore from Indian stocks.
This departure is a part of a broader exodus: in early August, FIIs withdrew over Rs 31,889 crore from eight sectors, with the financial and technology industries being the most affected. After withdrawals in July, net equities sales for the month totaled Rs 20,976 crore, bringing the year’s total outflows to almost Rs 1.2 trillion.
The number of foreign portfolio investors in India has decreased to its lowest level in ten years, according to a Jefferies analysis released on August 13. Analysts warn that market recoveries would not be long-lasting, even though domestic investments offer some stability.
