“The fact that markets have come down is a little bit of caution, or not too much. I think the August low of 24,337, is likely to hold. In the unlikely event that the markets were to go below 24,337 we are looking at a deeper correction, somewhere close to 23,500 but that’s not the primary case. As long as the markets can hold about 24,500 I think the 24,337 low of August is likely to hold, and we are looking at fresh record highs, in any case, from a six to 12 months perspective,” Jai Bala, technical analyst at Cashthechaos.com said.
The selloff deepened in the final hour of trade, dragging almost all major sectors into the red except fast-moving consumer goods. Market breadth was firmly negative, with more than 40 Nifty stocks closing lower and the advance-decline ratio slipping to 1:4.Indian exports are set to face US tariffs as high as 50% after President Donald Trump announced additional duties earlier this month in response to New Delhi’s rising imports of Russian oil.
Pharmaceutical shares came under pressure after Trump renewed calls for steep cuts in U.S drug prices, while capital market plays such as BSE Ltd, Angel One and KFin Technologies dropped between 3% and 5%. Telecom operator Vodafone Idea plunged 9% after the minister of state for telecom ruled out any government relief package, and PG Electroplast fell 4% as the stock exited the futures and options ban list.
Autos provided some relief to the broader market. Maruti Suzuki rose 2% after rolling out its first battery-powered electric vehicle, while Eicher Motors gained 3% on hopes of a lower goods and services tax rate for motorcycles below 350cc. FMCG stocks also advanced on expectations of a GST cut, with Britannia Industries ending as the top gainer on the Nifty.
The Nifty Midcap 100 index slid 935 points to 56,766, underscoring the broader market weakness.
First Published: Aug 26, 2025 3:44 PM IS
