August 31, 2025

Indian stock markets had a tough week, thanks to the tariff troubles stirred up by Donald Trump. The US imposed a hefty 50% tariff on Indian goods, which shook market confidence badly. The NSE Nifty dipped by 74 points, closing at 24,426.85, while the BSE Sensex fell 271 points to end at 79,809.65. Both indices lost about 1.8% in the four-day trading week, with no trading on Wednesday for Ganesh Chaturthi celebrations. Amit Khurana, head of equities at Dolat Capital Market, said, "The tariff overhang has been weighing on the domestic markets, due to which we have seen another week of decline in the benchmark and broader market indices." He added that the sentiment remains weak because there’s little fresh buying interest. The heat turned up even more on August 27 when the US slapped an additional 25% tariff on Indian goods because of India's oil purchases from Russia, adding to the existing 25%. This extra tax is making investors more jittery about how it will impact the Indian economy. All eyes are now on the GST Council meeting scheduled for September 3-4. Investors hope the council will approve tax slab reforms under GST 2.0, which could fire up domestic spending. Experts suggest sectors like autos, cement, consumer goods, retail, hotels, and financial services stand to gain the most. Dharmesh Shah, head of technicals at ICICI Securities, noted, "Both Nifty and Bank Nifty are now in oversold territory, suggesting that any positive trigger could lead to short covering and a potential rebound." He explained that Nifty is just above its crucial support zone of 24,000-24,200, aligning well with the 200-day moving average—a strong technical safety net. The Nifty Bank index dropped 2.7% this week, while the Nifty Volatility Index (VIX) fell 3.5% to 11.75 by Friday, indicating a softer market fall after two rough days. Midcap and small-cap indices also slid by 3.2% for the week. Of the 4,237 stocks on BSE, 1,777 advanced and 2,317 declined at Friday’s close. Foreign portfolio investors (FPIs) sold shares worth ₹8,313 crore on Friday and a massive ₹46,903 crore during August. Meanwhile, domestic institutional investors (DIIs) bought shares worth ₹11,488 crore on Friday and ₹94,829 crore in August, showing strong local support. As the market braces for GST Council decisions, investors wait eagerly for the magic wand that might revive buying and turn the tide after Trump's tariff storm.

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Tags: Indian stock markets, Donald trump, Tariffs, Gst council, Nifty, Sensex,