LATEST MARKET IMPACT SUMMARY - AUGUST 29, 2025
DIRECT MARKET MOVEMENTS
- Current Market Status:
- Nifty50 opens in green; BSE Sensex up over 100 points.
- Sensex jumps 150+ pts, Nifty above 24,500 as RIL & HDFC Bank lead gainers.
- GIFT Nifty up 50 points; positive trading setup for today.
- Major Market Damage:
- Investors lose nearly Rs 10 lakh crore in 2 days of sharp fall.
- Sensex dips over 1,500 pts on tariff fears.
US TARIFF DEVELOPMENTS
- Tariff Impact Assessment:
- Effective duty on exports seen at 33.6%, not full 50%.
- Nearly one-fourth of India's textile exports hit in 6 months.
- Diamond polishing industry faces 28–30% revenue loss.
- Export Sector Crisis:
- Garment hubs of Tirupur, Gurgaon & Noida under stress.
- 25% of textile exports to be hit in coming weeks.
- Government Response:
- FM assures exporters: “Government with you.”
- Inter-ministerial meets underway to shield exporters.
- Commerce Ministry sees tariff impact as short-term.
BANKING SECTOR UPDATES
- Positive Developments:
- Sumitomo Mitsui lines up Rs 16,000 cr for Yes Bank.
- Bank of Baroda cuts auto loan & mortgage rates.
- HDFC Bank Leadership: Market confidence strong as HDFC Bank leads gainers.
Impact: Supporting index recovery.
CORPORATE & SECTORAL NEWS
- RIL AGM Focus: Russian deals & growth outlook under spotlight.
Impact: Major index heavyweight may drive market direction. - IT Sector Developments:
- Infosys partners with Mastercard on cross-border payments.
- TCS expands with Rs 2,130 crore Bengaluru lease.
- Fed Policy Support: Fed governor calls for September rate cut.
Impact: Global liquidity conditions supportive.
ECONOMIC INDICATORS
- Industrial Growth: IIP at 3.5% in July (4-month high).
Impact: Domestic economy showing resilience. - Currency & Commodities:
- Rupee closes at 87.63 vs USD, up 6 paise.
- Gold nears one-month peak on soft dollar & rate-cut hopes.
POLICY & REGULATORY UPDATES
- GST Reforms:
- GST reform expected to cushion reciprocal tariff impact.
- Auto sector hopes GST cut revives small car demand.
- Infrastructure Push:
- Centre approves Rs 12,328 cr railway projects across 5 states.
- First “Made in India” chip to roll out from Sanand plant.
GLOBAL FACTORS
- US Market Performance:
- S&P 500 & Dow hit record highs as Nvidia supports AI rally.
- Nvidia stock drops despite strong results.
- Geopolitical Tensions:
- Russia’s deadliest strike on Kyiv since Trump–Putin summit.
- NATO warns of escalating threats from Russia & China.
SECTOR-WISE OUTLOOK
- Winners Today: Banking (HDFC Bank), Oil & Gas (RIL), IT services.
- Under Pressure: Textiles & garments, Gems & jewelry, Auto components.
- Defensive Plays: Domestic consumption, Infrastructure, Banking (policy-backed).
KEY MARKET OUTLOOK
- Immediate Factors: Market recovery attempt, RIL AGM outcomes, government policy response.
- Medium-term Challenges: Export sector restructuring, US trade negotiations, global slowdown risks.
- Support Factors:
- Strong domestic industrial growth.
- Infrastructure investment push.
- RBI & Fed policy accommodation.
- GST reform expectations.
- Technical Levels:
- Nifty50: Trading above 24,500.
- Support: 24,000–24,200 zone.
- Resistance: 25,000 (psychological barrier).
Conclusion: Market attempting recovery with government assurances, banking support, and positive domestic data. However, tariff impact and global risks remain significant medium-term challenges.