Sensex And Nifty Falling 0.85% Each Amid Broad-Based Selling; heavyweights like HDFC Bank, Hero MotoCorp, HCL Tech, Grasim, and Asian Paints dropping up to 2%
Gaurav Garg,
Lemonn Markets Desk
Mumbai, August 22, 2025: Indian equity markets snapped their six-day winning streak on Friday, with both Sensex and Nifty falling 0.85% each amid broad-based selling ahead of US Fed Chair Jerome Powell’s Jackson Hole speech. The Sensex slipped 694 points to close at 81,307, while the Nifty ended 214 points lower at 24,870. Financials, banking, and IT stocks led the decline, with heavyweights like HDFC Bank, Hero MotoCorp, HCL Tech, Grasim, and Asian Paints dropping up to 2%. In contrast, pharma and consumer durables were the only sectors that held firm, while gainers included Bharat Electronics, Bajaj Finance, Mahindra & Mahindra, Sun Pharma, and Trent.
Market sentiment turned cautious as profit-booking set in after a strong six-day rally driven by GST reform optimism and an S&P rating upgrade. Investors also awaited Powell’s comments, which could influence September’s Fed policy direction. Adding to the pressure were concerns over the August 27 deadline for additional US tariffs on Indian goods, rising Brent crude prices, a weaker rupee, and sharp remarks from White House adviser Peter Navarro. Meanwhile, India VIX climbed nearly 2% to 11.59, signalling a rise in volatility expectations. Please note that the market remains near resistance levels, with immediate downside support seen in the 25,033–24,977 Nifty range."
Shrikant Chouhan, Head Equity Research, Kotak Securities, adds:
Global equity markets were mixed over the past one week, while the Indian equity markets outperformed most markets on a weekly basis. The Nifty 50 and the Sensex 30 indices inched ~1% higher during the week. The BSE midcap and the smallcap indices outperformed the larger peers with weekly gains of 2-2.5%. Almost all the key sectoral indices closed the week with positive gains. The market saw sharp rally in select sectors like automobiles, cement, consumer staples, select consumer durables and some NBFC’s amid government's plan for GST rationalization.
Auto sector was a clear outperformer whereas BSE Bankex and BSE Power indices underperformed on a relative basis. On the macro front, the RBI MPC minutes highlighted the need for a pause to allow the transmission of policy actions, while remaining wary of evolving external sector uncertainties. Adjusted net profits of the Nifty-50 Index in Q1FY26 increased 7.5% yoy as compared to our expectations of 4% yoy growth. With result season behind us, the focus will be on global and domestic macroeconomic factors. Equity markets would keenly watch for any announcements with respect to tariffs, as India faces the risk of 50% US tariffs from August 27. On the domestic front, good monsoon, lower inflation and interest rates, lower oil prices and Government efforts to boost consumption are positives.
