Snapping a six-session winning streak, Indian benchmark indices closed lower on August 22, as weak global cues and profit-booking ahead of US Federal Reserve Chair Jerome Powell’s Jackson Hole speech dented sentiment. Concerns over looming Trump-era tariff hikes further added to the sell-off.
The Sensex shed 694 points, or 0.85 percent, to settle at 81,306.85, while the Nifty 50 fell 214 points, or 0.85 percent, to 24,870.10. The BSE Midcap and Smallcap indices also edged lower, down 0.23 percent and 0.35 percent, respectively.
The broad sell-off eroded investor wealth sharply, with the combined market capitalisation of BSE-listed companies slipping to below ₹454 lakh crore from ₹456.3 lakh crore a day earlier—an erosion of more than ₹2 lakh-crore in a single session.
Despite the day’s correction, both frontline indices managed to log weekly gains of about 1 percent each, marking the second consecutive week of advances.
Investor sentiment soured as the August 27 deadline for secondary US tariffs drew closer. Unless a breakthrough is reached, tariffs on Indian goods could rise to as high as 50 percent, a move analysts fear would hit India’s exports hard.
Escalating Russia–Ukraine tensions also dampened the mood, with traders fretting that the conflict’s continuation reduces the likelihood of a softer US stance on tariffs.
“Profit-booking, coupled with concerns over potential new tariffs under the Trump administration, weighed on market sentiment. Investors also remained wary ahead of the scheduled imposition of an additional 25 percent tariff next week,” said Vishnu Kant Upadhyay of Master Capital Services.
Vinod Nair of Geojit Investments noted that investors stayed cautious ahead of Powell’s Jackson Hole address. “Markets are looking for cues on global liquidity and the future interest rate trajectory. The US using trade tariffs on India as a strategic lever in its Russia stance has raised near-term concerns for institutional investors, though strong domestic fundamentals continue to provide support,” he said.
Only eight Nifty stocks ended higher, with Mahindra & Mahindra (up 0.74 percent), Maruti Suzuki (up 0.63 percent) and BEL (up 0.25 percent) among the top gainers.
Grasim Industries (down 2.55 percent), Asian Paints (down 2.40 percent) and Adani Enterprises (down 2.28 percent) led the losers.
Nifty Bank tumbled 1.09 percent, while Financial Services dropped 0.96 percent. Other major sectoral indices including FMCG, IT, Realty, Metal, and Oil & Gas slipped up to 1 percent.
Vodafone Idea (166 crore shares), Ola Electric Mobility (26.82 crore shares), and Sagility India (10.6 crore shares) were the most active stocks by volume on the NSE.
Defying the trend, 11 BSE-listed stocks, including Chembond Chemicals and Cargosol Logistics, surged more than 15 percent.
On the BSE, 1,757 stocks advanced while 2,322 declined, with 161 remaining unchanged. As many as 151 stocks, including Apollo Hospitals, Cummins India and HDFC AMC, touched fresh 52-week highs, while 53 hit new lows.
Technically, analysts see key support at the 24,800 mark for the Nifty.
“The index holding above 24,800 could pave the way for a move towards 25,000–25,250,” said Rupak De, Senior Technical Analyst, LKP Securities.
Swastika Investmart’s Santosh Meena warned that a breach of the 24,700 zone could trigger a slide towards the 200-day moving average near 24,050, signalling a potential shift in momentum.
(By arrangement with livemint.com)