The Indian stock market witnessed a sharp decline on August 28, 2025, with Sensex plunging over 500 points and Nifty slipping below 24,600 during early trade. The fall was triggered by a mix of fresh U.S. tariffs, heavy foreign investor selling, weak Asian cues, and technical chart weaknesses.
🔑 Key Market Drivers Behind the Fall
1. US Tariffs on Indian Goods
- The U.S. imposed 25% tariffs on select Indian imports, reviving trade war fears.
- Export-oriented sectors such as textiles and IT came under pressure.
- Government extended the duty-free cotton import exemption till Dec 31 to support exporters.
2. Foreign Institutional Investor (FII) Outflows
- FIIs continued their selling streak, fueling market volatility.
- India VIX spiked ~7%, highlighting trader nervousness.
3. Sectoral Performance
- Weak Sectors: IT, pharma, FMCG, realty, and banking.
- Resilient Pockets: Consumer durables and ferrous metals (helped by strong steel prices & lower coal costs).
4. Global Market Cues
- U.S. markets were subdued despite S&P 500 touching near-record highs.
- Nvidia fell despite strong earnings, sparking fears of an AI bubble.
- Oil prices dipped as U.S. demand softened.
📊 Corporate & Stock-Specific Updates
- Vodafone Idea: Tanked 11% in two sessions as govt denied more AGR relief.
- IndiGo: Dropped 4.5% after Rakesh Gangwal family offloaded 3.1% stake worth ₹7,085 crore.
- HDFC Bank: Fell ~2% after a 1.56 million share block deal.
- Ramco Systems: Gained over 1% on aviation software deal.
- Adani Wind: Partnered with Fourth Partner Energy for 165 MW wind turbines.
- Acme Solar: Announced plans to raise ₹3,000 crore and reappointed Shashi Shekhar.
- TCS: Slipped despite setting up a new AI transformation unit.
- Anlon Healthcare IPO: Subscribed nearly 2x on Day 2, with strong retail demand.
💰 Commodities & Currency Highlights
- Gold: Surged past ₹1,01,000/10g amid safe-haven buying.
- Silver: Touched a record ₹1,20,000/kg in Delhi.
- Oil: Declined on weak global demand signals.
- Rupee: Strengthened 16 paise to ₹87.53 against USD.
🏦 Policy & Banking Updates
- RBI: Preparing consultations with industry players to assess U.S. tariff impact before next monetary policy.
- PNB: Opened first startup-focused banking branch.
- Banking sector: Top lenders suggested that tariffs would have limited impact on credit growth & asset quality.
✅ Key Takeaways
- Tariffs + FII selling + weak global cues = perfect storm for markets.
- Export sectors like IT & textiles remain vulnerable.
- Commodities (gold, silver) are acting as safe havens.
- Select opportunities lie in metals, consumer durables, and IPOs with strong retail interest.
❓ Frequently Asked Questions (FAQs)
Q1. Why did Sensex and Nifty fall on August 28, 2025?
A: The fall was due to U.S. tariffs on Indian goods, FII outflows, weak global cues, and pressure on key sectors like IT, pharma, and banks.
Q2. Which sectors were hit the hardest?
A: IT, pharma, FMCG, realty, and banking stocks saw the biggest declines.
Q3. Which stocks gained despite the market fall?
A: Ramco Systems, some Adani Group firms, and Zee Entertainment (on dividend date) showed resilience.
Q4. How did global factors affect Indian markets?
A: Nvidia’s decline, subdued U.S. market sentiment, weaker Asian indices, and falling oil prices contributed to bearishness.
Q5. What should investors do now?
A: Experts suggest focusing on defensive plays (FMCG, pharma), safe havens like gold, and selectively exploring IPO opportunities, while avoiding highly export-dependent stocks until trade clarity emerges.