Indian equities open with mild gains after yesterday’s sharp fall
The Indian stock market opened with mild optimism today after facing a sharp fall in the previous session. The GIFT Nifty, which signals the market opening, trades in the range of 24,674 to 24,679. This shows a premium of around 23 to 53 points compared to the Nifty futures close from yesterday. The Nifty 50 index moves above 24,550 with a rise of about 45 points or 0.18 percent, while the Sensex climbs by more than 100 points or 0.16 percent, trading around 80,211.
This slight bounce provides some relief to investors, but overall market sentiment still carries caution because of global concerns and recent domestic pressures.
Yesterday’s Fall and its Impact
The recovery today comes after a steep fall yesterday, when both major benchmarks faced heavy selling pressure. On August 28, the Nifty 50 closed at 24,500.90, down 211 points or 0.85 percent. The Sensex also ended lower at 80,080.57, losing 706 points or 0.87 percent.
Selling pressure was not limited to large companies. Sectoral indices such as banking, information technology, real estate, FMCG, and telecom also faced losses. Mid-cap and small-cap indices showed the same weakness. The sharp correction sent a warning to investors that global news, especially trade tensions, is affecting Indian equities in a strong way.
Global Pressure from U.S. Tariffs
One of the main reasons for the weakness in markets is the announcement of fresh tariffs by the United States on Indian exports. The U.S. government has imposed an additional 25 percent tariff, taking the total tariff burden to 50 percent. This development shakes investor confidence as it directly impacts India’s export-oriented industries.
Markets have also been hit by worries about foreign money moving out of India. In August, foreign investors reportedly withdrew around 3.3 billion U.S. dollars from Indian equities. Combined with soft corporate earnings in some sectors, this has created nervousness among traders and institutions.
Sectoral Performance and Stock Movements
Despite the overall weakness, some sectors and companies show strength. Consumer stocks are among the outperformers, gaining about 0.6 percent. Investors are expecting the upcoming GST council meeting to provide relief through possible tax cuts, which lifts sentiment in this segment.
Ola Electric is another highlight in today’s trade. The stock rises by about 3 percent on the back of positive news around its Gen 3 scooters, which continue to attract government incentives.
Among frontline stocks, Kotak Mahindra Bank, Jio Financial Services, Tata Steel, TCS, and Asian Paints record gains in early trade. On the other hand, Shriram Finance, Apollo Hospitals, Titan Company, Larsen & Toubro, and ICICI Bank show declines.
Yesterday, IndusInd Bank fell 1.31 percent, performing worse than other major banking names, while State Bank of India slipped 0.71 percent. The mixed performance of banks reflects cautious trading in the financial sector.
Market Outlook and Policy Support
Market experts believe that the tariff impact may already be factored into current prices, which means investors could soon shift focus to other developments. One of the most important events on the horizon is the GST council meeting. If rate cuts are announced, it could act as a strong boost to consumer demand and market confidence.
Policy support becomes crucial in times of global uncertainty. Traders now look at possible government steps to offset the pressure of foreign outflows and weaker global demand.
Exchange Developments: Pre-Open Session
On the structural side, the National Stock Exchange has announced plans to introduce a pre-open session for index and stock futures from December 8, 2025. This move comes after a similar decision by the Bombay Stock Exchange. The idea behind the pre-open session is to improve price discovery and make the market more efficient, especially in the derivatives segment.
Such reforms are expected to help traders handle volatility better and reduce sudden sharp moves when the market opens.
Technical Snapshot of Nifty 50
The Nifty 50 index trades around 24,540 to 24,551 today, which is a rise of about 0.15 to 0.20 percent. The total market capitalization of Nifty 50 companies stands at approximately ₹1.946 million crore. The index currently trades at a price-to-earnings ratio of 21.5 and a price-to-book ratio of 3.28, while offering a dividend yield of about 1.36 percent.
Even with the slight recovery, the index remains about 6.3 percent below its 52-week high of nearly 26,277. This shows that the market has corrected from its peak but still holds strong in long-term valuations compared to other global markets.
Investor Sentiment and Themes
The present mood in the market is a blend of caution and selective optimism. The caution comes from global trade tensions, foreign outflows, and weaker earnings from some companies. At the same time, optimism is seen in consumer stocks, which benefit from expectations of policy support. The mild rise in GIFT Nifty futures also reflects confidence that Indian markets may stabilize after recent volatility.
Investors are likely to remain watchful of both global headlines and domestic policy actions. Developments around tariffs, GST decisions, and movement of foreign institutional money will decide the direction of the market in the coming weeks.
Final Thoughts
The Indian stock market on August 29, 2025, begins the day on a positive but cautious note. After a sharp decline in the previous session, Nifty and Sensex show signs of recovery, supported by strength in consumer and selected blue-chip stocks. However, concerns over U.S. tariffs, foreign investor withdrawals, and weaker earnings continue to weigh heavily on overall sentiment.
Market reforms such as the introduction of a pre-open session for derivatives trading point to efforts to improve efficiency and investor confidence in the long term. In the short term, attention remains fixed on the upcoming GST council meeting, which may play a key role in deciding the next leg of the market’s movement.