The Indian stock market witnessed sharp declines on Tuesday, August 26, as investor sentiment weakened following the US government’s draft notice on imposing additional tariffs on Indian imports.
At around 11 a.m., the Sensex dropped 534.91 points, or 0.66%, to 81,100.99, while the Nifty slipped 161.75 points, or 0.65%, to 24,806.00.
Major Losers in Trade
Heavyweights such as Sun Pharma, Shriram Finance, Tata Steel, Dr. Reddy’s Laboratories, and Coal India were among the top laggards, falling up to 3% intraday.
Also Read: Tata Communications Shares Decline 2.06% Amid Nifty Midcap 150 Activity
Key Factors Behind the Market Decline
US Tariff Concerns: The US has proposed an additional 25% tariff on Indian imports starting August 27, raising fears of a major hit to India’s export competitiveness. Analysts warned that the higher duties could impact nearly all of India’s USD 86.5 billion exports to the US.
Weak Global Cues: Asian markets, including Japan’s Nikkei, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s Composite, traded in the red. US markets had also closed lower, signaling continued global pressure.
FII Selling: Foreign Institutional Investors (FIIs) sold equities worth ₹2,466 crore on Monday, further dampening sentiment.
Rupee Pressure: The rupee slipped 22 paise to 87.78 against the dollar, reflecting tariff worries and strong dollar demand.
Volatility Spike: The India VIX jumped over 5% to 12.38, indicating rising risk perception.
Market Insights and Technical View
Experts noted that the Nifty’s inability to sustain above 25,000 indicates weak buying interest. Analysts suggested that if Nifty falls below 24,740, further downside could be triggered.
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