Stock markets fall for third day as excessive tariffs, overseas fund outflows weigh on sentiment

Equity benchmark indices Sensex and Nifty fell on Friday (August 29, 2025), extending their downward journey to the third day, as buyers continued to reel beneath strain attributable to the imposition of excessive tariffs and relentless overseas fund outflows.

The 30-share BSE Sensex dropped 270.92 factors or 0.34% to settle at 79,809.65. During the day, it declined 338.81 factors or 0.42% to 79,741.76.

The 50-share NSE Nifty edged decrease by 74.05 factors or 0.30% to 24,426.85.

The U.S. has imposed a steep 50% tariff on Indian items getting into America from August 27. This excessive obligation is predicted to influence exports of sure labour-intensive sectors like textiles and leather-based and footwear and shrimp.

From the Sensex companies, Mahindra&Mahindra fell by 2.96%, adopted by Reliance Industries which misplaced 2.21%. Infosys, NTPC, Tata Motors and Tech Mahindra have been additionally among the many laggards.

However, ITC, Bharat Electronics, Trent, and Larsen&Toubro have been among the many main gainers.

Meanwhile, Reliance Industries Chairman and Managing Director Mukesh Ambani on Friday introduced the launch of Reliance Jio’s preliminary public providing within the first half of 2026.

Addressing the forty eighth Annual General Meeting of RIL, Ambani introduced that Jio will now broaden its operations abroad and develop its personal synthetic intelligence expertise.

On Thursday, the Sensex tanked 705.97 factors or 0.87% to settle at 80,080.57. The Nifty dived 211.15 factors or 0.85 per cent to 24,500.90.

In the previous three buying and selling days, the BSE benchmark has plummeted 1,826.26 factors or 2.23%, and the Nifty tumbled 540.9 factors or 2.16%.

“Investor sentiment remained cautious as markets tried to digest the total influence of the U.S. tariff. The persistence of this problem is more likely to heighten the long run competitiveness of India’s exports in some areas.

“Equity benchmarks underperformed, with mid and smallcap segments particularly affected by risk aversion and stretched valuations,” Vinod Nair, Head of Research, Geojit Investments Limited, mentioned.

In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 index settled decrease whereas Shanghai’s SSE Composite index and Hong Kong’s Hang Seng resulted in constructive territory.

Markets in Europe have been buying and selling decrease.

The U.S. markets ended greater on Thursday.

Global oil benchmark Brent crude declined 0.80% to $68.07 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities value ₹3,856.51 crore on Thursday, whereas Domestic Institutional Investors (DIIs) purchased shares value ₹6,920.34 crore, based on change information.