The Indian equity markets, represented by the benchmark Sensex and Nifty indices, faced a sharp downturn on Tuesday, August 26, 2025, erasing gains from the previous session. The market's decline was primarily triggered by heightened geopolitical concerns, particularly the looming threat of US tariffs on Indian products, and a broad-based sell-off across multiple sectors.
Table of Contents
- Nifty and Sensex Today – Key Market Indices Performance
- Sector-wise Performance
- Top Stock Market News of the Day – What Moved the Markets
- FII and DII Activity Today – Where Big Money Moved
- IPOs, Listings, and Market Buzz – Latest Stock Market Trends
- Top Gainers and Losers – Best and Worst Performing Stocks
- Final Takeaway – Summary of Stock Market Day
The Indian equity benchmarks concluded the day in the red, with heavy selling pressure across the board.
- The BSE Sensex settled at 80,786.54, marking a loss of -849.37 points, or -1.04%.
- The NSE Nifty 50 closed at 24,712.05, with a loss of -255.70 points, or -1.02%.
The Indian stock market showed a significant negative performance on August 26, 2025, with nearly all sectors closing in the red.
Top Performing Sectors
- NIFTY FMCG (+0.91%) Analysis: In a day dominated by a sell-off, the FMCG sector stood out as the sole gainer. This suggests a classic flight to defensive stocks, as investors sought refuge in companies with stable demand and earnings, unaffected by global trade tensions.
Top Losing Sectors
- NIFTY REALTY (-2.24%) Analysis: The realty sector was the worst performer, experiencing a sharp decline. This reversal from the previous day's gains indicates a sudden shift in sentiment, likely due to profit booking and broader concerns impacting capital-intensive sectors.
- NIFTY PSU BANK (-1.87%) Analysis: PSU banks faced a significant downturn, suggesting investors were booking profits after recent rallies. The sector's performance was hampered by a broad-based selling pressure in the financial space.
- NIFTY PHARMA (-1.67%) Analysis: The pharmaceutical sector experienced a notable loss. This was a result of profit booking and a downgrade from a brokerage firm on a key heavyweight stock, which weighed on the entire sector.
- NIFTY METAL (-1.66%) Analysis: The metal sector, which had performed well on Monday, saw a sharp decline. This downturn was driven by a negative outlook on global commodity prices and the broader risk-off sentiment.
- NIFTY CONSUMER DURABLES (-1.77%) Analysis: This sector, which had gained on Monday, reversed its course to close with significant losses, suggesting that even sectors with resilient consumer spending were not immune to the market-wide sell-off.
- NIFTY IT (-0.60%) Analysis: The IT sector, the top gainer on Monday, faced a correction. While the loss was less severe compared to other sectors, it highlights that even the global optimism that fueled its rally was not enough to counter the domestic sell-off.
- NIFTY MEDIA (-0.75%) Analysis: The media sector continued its downward trend from Monday, experiencing a further decline. This points to persistent selling pressure and negative sentiment for the sector.
The sharp market decline was a result of a combination of factors:
- US Tariff Threat: The primary catalyst for the sell-off was the announcement from the US administration regarding the imposition of an additional 25% tariff on Indian products, effective August 27, 2025. This move raised fears of a global trade war and negatively impacted investor sentiment.
- Profit Booking: Following Monday's rally, a significant amount of profit booking occurred at higher levels. This was a key factor in the sharp decline, especially in sectors that had seen recent gains.
- Global Cues: Weakness in global markets, including US futures and other Asian peers, contributed to the negative sentiment. The dismissal of a US Federal Reserve Governor also added to the uncertainty about the independence of the US central bank.
- FII Selling: Persistent selling by Foreign Institutional Investors (FIIs) has been a continuous drag on the market. Their continued outflows have been a source of concern for investors.
The provisional data for institutional activity on August 26, 2025, reflects the day's market movements.
- FIIs (Foreign Institutional Investors): FIIs continued to be net sellers on Tuesday, with a net sell figure of ₹2,466.24 crore on Monday, August 25. This consistent selling trend has been a major headwind for the Indian market, with total outflows of ₹28,217.26 crore in August so far.
- DIIs (Domestic Institutional Investors): In contrast, DIIs were net buyers on Monday, with a net buy figure of ₹3,176.69 crore, providing crucial support and cushioning the market from a sharper fall.
The primary market remained active with new and ongoing IPOs.
Mainboard IPOs
- Vikran Engineering Limited (EQ)
- IPO Dates: August 26, 2025, to August 29, 2025
- Status as of Day 1: The IPO was subscribed 1.32 times overall, with the issue of 5,87,39,128 shares receiving bids for 7,75,17,812 shares.
- Anlon Healthcare Limited (EQ)
- IPO Dates: August 26, 2025, to August 29, 2025
- Status as of Day 1: The IPO was subscribed 0.99 times overall, with 1,33,00,000 shares on offer and bids for 1,31,39,516 shares.
SME IPOs
- Current Infraprojects Limited (SME)
- IPO Dates: August 26, 2025, to August 29, 2025
- Status as of Day 1: The IPO was subscribed a remarkable 8.10 times overall, with bids for 3,05,72,800 shares against the 37,72,800 shares offered.
- Sattva Engineering Construction Limited (SME)
- IPO Dates: August 26, 2025, to August 29, 2025
- Status as of Day 1: The IPO was subscribed 0.98 times overall, receiving bids for 33,10,400 shares against the 33,87,200 shares offered.
- Anondita Medicare Limited IPO (SME)
- Open/Close Dates: August 22, 2025, to August 26, 2025.
- Final Subscription Status: The IPO was oversubscribed 275.10 times overall, indicating robust investor interest.
- Shivashrit Foods Limited IPO (SME)
- Open/Close Dates: August 22, 2025, to August 26, 2025.
- Final Subscription Status: The IPO was subscribed 2.75 times overall.
Top Gainers on August 26, 2025
Eicher Motors
- Closing Price: ₹6,151.00
- Change: +₹160.50 (+2.68%)
- Analysis: Eicher Motors was a top performer today, leading the rally in the auto sector. The stock's significant gain of 2.68% was likely driven by strong investor interest in the automotive industry and a positive market outlook, which helped the stock outperform the broader market.
HUL
- Closing Price: ₹2,692.70
- Change: +₹61.10 (+2.32%)
- Analysis: Hindustan Unilever (HUL) was a key gainer in the FMCG sector. The stock's robust performance, with a gain of over 2%, suggests strong buying interest, potentially fueled by favorable news within the consumer goods market or a positive long-term outlook for the company.
Maruti Suzuki
- Closing Price: ₹14,720.00
- Change: +₹268.00 (+1.85%)
- Analysis: Maruti Suzuki's stock experienced a solid rise, contributing significantly to the market's positive movement. The gain of 1.85% indicates strong investor confidence in the automotive giant, potentially on the back of positive sales data or a favorable industry environment.
ITC
- Closing Price: ₹403.35
- Change: +₹4.00 (+1.00%)
- Analysis: ITC showed a good performance, closing with a 1.00% gain. This movement suggests a positive sentiment in the FMCG sector, with the stock likely benefiting from broad-based buying and a favorable market environment.
TCS
- Closing Price: ₹3,157.00
- Change: +₹16.40 (+0.52%)
- Analysis: Tata Consultancy Services (TCS) continued its positive momentum, albeit with a more modest gain compared to yesterday. The stock's rise of 0.52% reflects ongoing investor confidence in the IT heavyweight and a continued positive outlook for the technology sector.
Top Losers on August 26, 2025
Bajaj Finance
- Closing Price: ₹876.00
- Change: -₹24.80 (-2.75%)
- Analysis: Bajaj Finance was a major loser today, with a notable decline of 2.75%. The drop was likely due to a market-wide correction and significant profit booking by investors after a recent rally. The stock's fall was a clear sign of a risk-off sentiment.
Reliance Industries
- Closing Price: ₹1,383.80
- Change: -₹28.80 (-2.04%)
- Analysis: Reliance Industries' stock faced a significant downturn, closing with a loss of over 2%. This decline was likely influenced by broader market corrections and could also be attributed to specific company-related news or a negative sentiment regarding the energy and retail sectors.
M&M
- Closing Price: ₹3,340.00
- Change: -₹58.90 (-1.73%)
- Analysis: Mahindra & Mahindra (M&M) experienced a notable drop today. The stock's decline of 1.73% was likely driven by a general weakness in the automotive sector, possibly due to profit booking or concerns over global economic trends
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Larsen & Toubro
- Closing Price: ₹3,552.00
- Change: -₹51.10 (-1.42%)
- Analysis: Larsen & Toubro's stock ended the day in the red, with a loss of 1.42%. This drop suggests that investors may be taking profits, and the stock is also affected by the broader market's cautious sentiment, particularly concerning the capital goods and infrastructure sectors.
ICICI Bank
- Closing Price: ₹1,415.00
- Change: -₹18.20 (-1.27%)
- Analysis: ICICI Bank's stock saw a decline, reflecting a negative sentiment in the banking and financial services sector. The fall was a result of a widespread market correction and profit booking, even as the banking sector remains a key part of the economy.
The Indian stock market on Tuesday, August 26, 2025, reversed its recent positive momentum, with a sharp decline driven by a combination of global and domestic factors. The primary concern was the US tariff threat, which led to a broad-based sell-off and investor panic. While defensive sectors like FMCG showed resilience, the sell-off was widespread, affecting major indices and several key sectors. The continued selling by FIIs, despite DIIs' buying activity, continues to be a major headwind. The market is likely to remain volatile in the near term as it grapples with geopolitical uncertainty and profit booking at higher levels.