Markets snapped their six-session winning streak on Friday, with the Sensex plunging 693.86 points or 0.85 per cent to close at 81,306.85, while the Nifty 50 declined 213.65 points or 0.85 per cent to 24,870.10. The sharp selloff came as investors turned cautious ahead of US Federal Reserve Chair Jerome Powell’s crucial speech at the Jackson Hole symposium and growing concerns over potential US tariffs on Indian goods.
Market sentiment deteriorated throughout the session, with the Nifty hitting an intraday low of 81,291.77 before recovering marginally by close. The benchmark index closed below the psychologically important 25,000 level, signalling a pause in the recent rally that had been fueled by optimism over GST reforms and S&P’s sovereign rating upgrade.
“The Indian equity market closed in the red today, ending a six-session winning streak and erasing gains accumulated over the past three days. Investor sentiment turned cautious ahead of the US Fed Chair’s speech at the Jackson Hole symposium, which is expected to provide critical insights into the global liquidity outlook and future interest rate trajectory,” said Vinod Nair, Head of Research at Geojit Investments Limited.
The selloff was broad-based, with declining stocks outnumbering advancers 2,421 to 1,662 on the BSE, while 157 stocks remained unchanged. Out of 4,240 stocks traded, 151 hit their 52-week highs while 53 touched their 52-week lows. Six stocks hit the lower circuit, while none reached the upper circuit.
Banking stocks led the decline, with the Nifty Bank index falling 606.05 points or 1.09 per cent to 55,149.40. The Nifty Financial Services index dropped 256.30 points or 0.96 per cent to 26,317.05. HDFC Bank declined 1.34 per cent, Kotak Bank fell 1.55 per cent and Axis Bank dropped 0.74 per cent, indicating sectoral profit-taking after recent gains.
Among individual stocks, Mahindra & Mahindra emerged as the top Nifty gainer, rising 0.74 per cent to ₹3,400.10, followed by Maruti Suzuki, which gained 0.63 per cent to ₹14,370.00. Bharat Electronics Limited added 0.25 per cent to ₹375.15, while Bharti Airtel inched up 0.16 per cent to ₹1,933.00 and Titan gained a modest 0.07 per cent to ₹3,618.90.
On the losing side, Grasim Industries was the worst performer, tumbling 2.55 per cent to ₹2,807.80. Asian Paints declined 2.40 per cent to ₹2,505.00, while Adani Enterprises fell 2.28 per cent to ₹2,323.00. UltraTech Cement and Hero MotoCorp both dropped 2.06 per cent to ₹12,605.00 and ₹4,992.30 respectively.
“Concerns over impending 25 per cent US Tariffs, unsettled sentiment, with the White House Trade Advisor Peter Navarro warning that the secondary tariffs against Indian goods will kick in from August 27,” noted Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities. “The US using trade tariffs on India as a strategic tool in its stance against Russia has raised near-term concerns among institutional investors.”
The broader market showed resilience compared to benchmark indices. The Nifty Midcap 100 declined marginally by 79.20 points or 0.14 per cent to 57,629.75, while the smallcap index also posted modest losses. The Nifty Next 50 fell 432.55 points or 0.64 per cent to 67,540.10.
Sectoral performance was mixed, with Nifty Media gaining 0.95 per cent and Pharma edging up 0.4 per cent. However, Metal, IT, FMCG, Oil & Gas, PSU Bank, Private Bank, and Realty indices slipped between 0.5 per cent and 1.25 per cent.
“The weakness was primarily driven by caution ahead of US Fed Chair Jerome Powell’s Jackson Hole address and renewed concerns around global trade and geopolitical tensions, which dampened risk appetite,” said Ajit Mishra, SVP Research at Religare Broking. “Domestic profit-booking after the recent rally and a pause in fresh FPI inflows further weighed on sentiment.”
Technical analysts pointed to the formation of an evening star candle pattern on the daily chart, considered a bearish reversal signal. “The benchmark Nifty index snapped its 6-day gaining streak on Friday and gave a lower close on the daily chart. The Index has formed an evening star candle pattern on the daily chart, which is considered to be a bearish reversal signal,” observed Sudeep Shah.
The Indian rupee weakened by 0.25 paise to settle at 87.50 against the dollar despite initial gains on GST reduction news. “The rupee weakened by 0.25, settling at 87.50 after initially gaining on the GST reduction news, but the momentum faded as persistent FII selling pressure weighed on sentiment,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
Gold prices traded weak over the week, slipping nearly ₹800 as rupee appreciation and declining COMEX gold pressured domestic prices. “Gold prices traded range-bound to weak over the week, slipping by nearly ₹800 as rupee appreciation and a decline in COMEX gold from $3,400 last week pressured domestic prices,” Trivedi added.
Despite the weekly decline, the Nifty managed to gain approximately 1 per cent for the week, with the Sensex up around 700 points. “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 per cent higher during the week,” noted Shrikant Chouhan, Head Equity Research at Kotak Securities.
The auto sector was a standout performer for the week, rallying 5 per cent amid government plans for GST rationalisation. However, the defense index shed over 1 per cent during the same period.
Looking ahead, market participants will closely watch Powell’s Jackson Hole speech for clues on the Federal Reserve’s monetary policy trajectory. “Market focus now shifts to Powell’s speech at Jackson Hole, which is expected to guide the dollar index and thereby influence rupee direction,” said Trivedi.
Technical support for the Nifty is placed at 24,800-24,850 levels. “After a steady run-up, Nifty paused on Friday, suggesting a brief consolidation before the next leg higher. On the downside, support lies at 24,800; staying above this level keeps the trend intact with scope for an advance towards 25,000–25,250,” said Rupak De, Senior Technical Analyst at LKP Securities.
As markets head into the monthly expiry week, investors will keenly await not only Powell’s address but also India’s GDP data and US growth and inflation numbers, which could provide crucial direction for the coming sessions.
Published on August 22, 2025