Stock markets dive in early commerce as steep 50% U.S. tariffs dent traders sentiment

Stock market benchmark indices Sensex and Nifty tumbled in early commerce on Thursday (August 28, 2025) as the extra 25% tariff imposed by U.S. President Donald Trump on India for its purchases of Russian oil got here into impact, weighing on traders’ sentiment. Besides this, overseas fund outflows additionally dented traders’ sentiment.

The extra 25% tariff imposed by the U.S. on India got here into impact on Wednesday (August 27, 2025), bringing the overall quantity of levies imposed on New Delhi to 50%.

The 30-share BSE Sensex tanked 508.16 factors to 80,278.38 in early commerce. The 50-share NSE Nifty dived 157.35 factors to 24,554.70.

From the Sensex companies, HCL Tech, HDFC Bank, Power Grid, Sun Pharma, NTPC and Bharat Electronics had been among the many main laggards.

However, Eternal, Asian Paints, Titan, Maruti and Larsen & Toubro had been the gainers.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index traded in constructive territory whereas Hong Kong’s Hang Seng quoted decrease. The U.S. markets resulted in constructive territory on Wednesday (August 27, 2025).

“The 50% tariff imposed on India, which has already come into effect, will weigh on market sentiments in the near-term. But the market is unlikely to panic since the market will view these high tariffs as a short-term aberration which will be resolved soon,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, stated.

The actual problem earlier than the market is the excessive valuations and the tepid earnings progress, he stated.

“The strong pillar of support to the market is the aggressive buying by DIIs (Domestic Institutional Investors) flush with funds. Any selling by FIIs will be easily neutralised by the aggressive buying by DIIs,” Vijayakumar added.

Global oil benchmark Brent crude dipped 0.76% to $67.53 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities price ₹6,516.49 crore on Tuesday, in accordance with trade knowledge. DIIs, nonetheless, purchased shares price ₹7,060.37 crore.

The home fairness markets had been closed on Wednesday (August 27, 2025) on account of Ganesh Chaturthi.

On Tuesday (August 26, 2025), the Sensex tanked 849.37 factors or 1.04% to settle at 80,786.54, and the Nifty dropped 255.70 factors or 1.02% to 24,712.05.