The Indian equity markets experienced a turbulent week from August 25 to August 29, 2025, marked by a sharp correction and a losing streak that concluded on Friday. While the week started on a positive note, the major indices, Sensex and Nifty, succumbed to selling pressure, largely driven by mounting concerns over new US tariffs on Indian goods. The week was characterised by a tug-of-war between persistent foreign institutional investor (FII) outflows and strong domestic institutional investor (DII) support.
Table of Contents
- Nifty and Sensex Weekly Performance: Key Market Indices
- Nifty Sectoral Indices Performance
- Top Stock Market News of the Week: What Moved the Markets
- FII and DII Activity: Where Big Money Moved
- IPOs and Market Buzz: Latest Stock Market Trends
- Top Gainers and Losers: Best and Worst Performing Stocks
- Final Takeaway: Summary of the Stock Market Week
The Indian benchmarks saw a volatile week. After a positive start, the indices fell sharply on Tuesday, August 26, as news of the US tariffs took center stage. The downturn continued for the rest of the week, with both Sensex and Nifty closing in the red for three consecutive sessions.
- BSE Sensex: The Sensex closed the week at 79,809.65 on Friday, a significant decline from its Monday close of 81,635.91. This represents a weekly loss of 1,826.26 points or approximately 2.24%.
- NSE Nifty 50: The Nifty 50 followed a similar trend, ending the week at 24,426.85, a fall of 540.9 points, or about 2.16% from its opening on Monday.
The broader market indices, Nifty Midcap 100 and Nifty Smallcap 100, generally underperformed the main indices, indicating a risk-off sentiment among investors.
The week saw a mixed bag of performances across different sectors. Defensive stocks and sectors with strong domestic demand showed resilience, while export-oriented sectors, particularly IT, faced a significant downturn.
- Gainers: Nifty FMCG and Nifty Media managed to close the week with marginal gains. The FMCG sector, in particular, was seen as a safe haven as investors sought refuge in consumer-centric stocks less vulnerable to global trade tensions.
- Losers: The Nifty Realty, Nifty Oil & Gas, and Nifty Auto indices were the week's biggest losers. The realty sector was hit by investor caution in interest rate-sensitive spaces, while the auto sector suffered from fears of a hit to exports due to the new US tariffs. The Nifty IT index also experienced a significant decline, a direct consequence of escalating trade tensions with the US, a key market for Indian IT services.
The market's direction was dominated by a few key themes throughout the week:
- US Tariff Concerns: The primary driver of the market's negative sentiment was the announcement of a 50% US tariff on Indian goods, sparking fears of a potential trade war. This led to a broad-based sell-off, with export-heavy sectors bearing the brunt of the losses.
- FII Selling Spree: The persistent selling by foreign institutional investors (FIIs) was a major headwind. FIIs have been net sellers for most of the month, and this trend intensified during the week, putting significant pressure on the market.
- Domestic Institutional Support: Despite the heavy FII outflows, the market was cushioned by robust buying from domestic institutional investors (DIIs). This DII support was a critical factor preventing a sharper market correction.
- Reliance Industries AGM: The highly anticipated 48th AGM of Reliance Industries was a key event. The announcement of Jio's IPO being planned for the first half of 2026 was a major headline. However, RIL's stock still closed as one of the top losers, a pattern seen after previous AGMs.
- GDP Data: India's Q1 FY26 GDP growth surged to 7.8% on strong services growth, providing some positive domestic economic news that helped to prevent a complete market collapse.
The week's institutional activity highlighted a crucial divergence in investor sentiment.
- FIIs (Foreign Institutional Investors): FIIs were net sellers for the entire week, with a total net outflow of approximately ₹12,839.2 crore. This continued selling spree has been a consistent drag on the Indian markets.
- Monday, Aug 25: ₹ -2,466.2 crore
- Tuesday, Aug 26: ₹ -6,516.5 crore
- Thursday, Aug 28: ₹ -3,856.5 crore
- DIIs (Domestic Institutional Investors): DIIs provided a strong counterbalance to the FII selling, being net buyers for the entire week. Their total net buy figure for the week was a robust ₹17,157.4 crore.
- Monday, Aug 25: ₹ +3,176.7 crore
- Tuesday, Aug 26: ₹ +7,060.4 crore
- Thursday, Aug 28: ₹ +6,920.3 crore
- (Note: Wednesday, August 27, 2025 was a trading holiday.)
The IPO market remained active, with several new issues and recent listings attracting investor attention.
- Vikran Engineering Limited: The mainboard IPO was a huge success, closing with strong subscription and is expected to list on September 3, 2025.
- Anlon Healthcare Limited: This mainboard IPO also saw a strong response, particularly from retail investors. Its subscription period ended on August 29, and it is expected to list on September 3, 2025.
- Sattva Engineering Construction Limited: This SME IPO was oversubscribed by a massive 183.65 times, highlighting the continued appetite for high-growth small and medium enterprises.
- Current Infraprojects Limited: Another SME IPO that saw a stellar response, with a subscription rate of 351.32 times.
- Snehaa Organics Limited: The SME IPO opened for subscription on Friday, August 29, and will remain active until September 2, 2025.
The week's volatility resulted in significant movements for individual stocks.
- ITC: The FMCG heavyweight was a key gainer, seen as a defensive play amidst the market correction. Its resilience reflects a flight to safety in the consumer goods sector, which is less susceptible to global trade issues.
- Closing Price (Aug 29): ₹409.75
- Bharat Electronics (BEL): The stock showed strength, buoyed by positive sentiment in the defense sector due to a favorable long-term outlook and government support.
- Closing Price (Aug 29): ₹369.40
- Asian Paints: This stock demonstrated strength, likely fueled by a positive outlook on domestic consumption, which remains a key theme for investors.
- Closing Price (Aug 29): ₹2,518.60
Top Losers (on a weekly basis)
- Mahindra & Mahindra (M&M): The stock was a significant loser, as the auto sector was under pressure due to concerns over new US tariffs impacting exports. The decline was also attributed to profit-booking after a period of strong performance.
- Closing Price (Aug 29): ₹3,199.50
- Reliance Industries (RIL): Despite a positive announcement regarding the Jio IPO at its AGM, the stock declined, continuing a pattern of "sell the news" reactions after such events.
- Closing Price (Aug 29): ₹1,357.20
- Infosys: The IT giant was among the worst performers, directly impacted by fears of escalating trade tensions with the US, a critical market for the company.
- Closing Price (Aug 29): ₹1,469.60
- Adani Enterprises: The stock closed the week with losses, influenced by the overall negative market sentiment and the broad-based sell-off. The stock ended Friday's session down by 1.34%.
- Closing Price (Aug 29): ₹2,244.70
The Indian stock market from August 25 to August 29 was a week of significant volatility and a clear divergence in institutional behaviour. While US tariff concerns and relentless FII selling drove a sharp correction, the market was supported by aggressive DII buying, preventing a steeper fall. The primary market remained robust, with several IPOs seeing stellar subscriptions. As the market heads into a new week, investors are expected to remain cautious, weighing global trade tensions against domestic economic data and policy announcements.