Sensex Falls 568 Points, Nifty Slips to 24,803; Sun Pharma, Tata Steel, Adani Ports Among Top Drags

Mumbai, August 26 – Indian equity benchmarks, Sensex and Nifty, had an extended loss as the downward rally continued on Tuesday morning. The BSE Sensex slipped 0.85% at its day’s low of 80,940.67, whereas Nifty50 slipped to an intraday low of 24,755.60, marking a decline of nearly 0.85% so far. The decline comes mainly from the concerns regarding the U.S. imposing an additional 25 percent tariff on Indian imports.

Market Update

At 13:44, the Nifty 50 was trading at 24,808.15, down 159.60 points (-0.64%), while the BSE Sensex stood at 81,104.43, lower by 531.48 points (-0.65%). Market breadth remained weak with only 12 Nifty stocks advancing against 38 declining, and Sensex too showed pressure with just 7 gainers and 23 losers. On fundamentals, Nifty was trading at a P/E of 21.93 and P/B of 3.34, while Sensex reflected a P/E of 22.90 and a dividend yield of 1.17%, indicating valuations remain elevated despite the correction.

Key Triggers

The key trigger for the downfall in the two indices remains the Trump-led U.S. government’s decision to levy the additional tariff on Indian imports. The U.S. Department of Homeland Security’s draft order confirmed that the additional 25% tariff will be imposed on Indian goods “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am EDT on August 27, 2025.”

The move has raised concerns, especially among Indian exporters, as a significant portion of India’s USD 86.5 billion exports to the U.S. may face commercial challenges now. In light of the recent development, several Foreign institutional investors (FIIs) have also pulled out their funding, which has further damped the whole situation. The industry also does not see any stability in the global market outside of the U.S., further adding to the many reasons.

Global and Domestic Cues

The instability has been experienced by several economies, especially in the Asian region. Asian markets largely traded lower, with Japan’s Nikkei 225, South Korea’s Kospi and Hong Kong’s Hang Seng slipping, while Shanghai’s SSE Composite index was mildly positive. The negative impact of the unstable global market was also experienced by the U.S., as its equities also ended weaker in the previous session.

Outlook

As investors digest the impact of the U.S. tariffs on Indian exports and other global factors contributing to the plunging index, markets may stay under pressure in the near term. Volatility could remain high with FIIs cautious and global cues weak. However, domestic fundamentals and corporate earnings resilience will be important factors to watch once the immediate sentiment-driven sell-off settles.

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