View on Market Performance for Aug 29, 2025

Nifty Fell For The Third Consecutive Session as Rupee Hits All-Time Low 

Nifty continued its downward journey for the third consecutive session, shedding 0.30%, or 74 points, to close at 24,426. After opening 34 points lower, Nifty showed some strength in the first half of the trade. However, Post 12.P.M, Nifty resumed its down trend and closed near day’s low. Nifty has registered a fall of 750 points from the recent swing high of 25153. For the week, Nifty is down by 1.78%.  

In an otherwise weak market, a few names managed to stand out. ITC, Shriram Finance, and BEL led the charge and ended the day as major gainers within the Nifty pack. On the flip side, it proved to be a tough session for heavyweights like M&M, Reliance, and Infosys, which were the key drivers of today’s losses. On this final trading day of the month, cash market volumes on the NSE were 12% lower compared to yesterday’s session.  

The Indian rupee tumbles to an all-time low of 88.31 against the US dollar. The rupee depreciated by 56 paise, closing at 88.19 levels. This sharp fall is primarily driven by mounting concerns over the new U.S. tariffs and the persistent outflow of funds from foreign institutional investors (FIIs) from the Indian markets.  

The pain was widespread amongst the sectoral indices. With the sole exception of FMCG, Media, and Consumer Durables, all other major sectoral indices ended the day in the red. Realty, Auto, and IT were the major losers, indicating a broad-based selling pressure across the board.  

The broader market continued to underperform relative to the benchmark. The Nifty Midcap 100 Index fell 0.57%, while the Nifty Smallcap Index lost 0.39%. Market breadth remained negative for the fifth day in a row, with declining shares slightly outnumbering advancing ones, as indicated by an advance-decline ratio on the BSE of 0.89.  

Nifty is in continuation of a downtrend and seems to be approaching its previous swing low support of 24337. The crucial 200-day EMA for the Nifty is currently placed at 24,267, which could serve as a significant short-term support level. On the upside, resistances for the index have now shifted down to 24,572 and 24,700, which could act as immediate hurdles for any rebound. 

Source – HDFC Securities, Prime End of the Summary, Aug 29 2025 

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