LATEST MARKET IMPACT SUMMARY - AUGUST 29, 2025

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.
  Impact: Recovery attempt after tariff-led selloff.
• 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.
  Impact: Massive wealth destruction from tariff shock.

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.
  Impact: Sector-specific damage assessment emerging.
• Export Sector Crisis:
  • Garment hubs of Tirupur, Gurgaon & Noida under stress.
  • 25% of textile exports to be hit in coming weeks.
  Impact: Manufacturing belt facing severe slowdown.
• Government Response:
  • FM assures exporters: “Government with you.”
  • Inter-ministerial meets underway to shield exporters.
  • Commerce Ministry sees tariff impact as short-term.
  Impact: Policy measures rolling out to calm fears.

BANKING SECTOR UPDATES

• Positive Developments:
  • Sumitomo Mitsui lines up Rs 16,000 cr for Yes Bank.
  • Bank of Baroda cuts auto loan & mortgage rates.
  Impact: Positive sentiment in banking sector.
• 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.
  Impact: IT sector shows resilience and expansion.
• 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.
  Impact: Safe-haven flows amid trade tensions.

POLICY & REGULATORY UPDATES

• GST Reforms:
  • GST reform expected to cushion reciprocal tariff impact.
  • Auto sector hopes GST cut revives small car demand.
  Impact: Domestic policy to counter external headwinds.
• Infrastructure Push:
  • Centre approves Rs 12,328 cr railway projects across 5 states.
  • First “Made in India” chip to roll out from Sanand plant.
  Impact: Government capex boosting demand.

GLOBAL FACTORS

• US Market Performance:
  • S&P 500 & Dow hit record highs as Nvidia supports AI rally.
  • Nvidia stock drops despite strong results.
  Impact: Mixed global tech sentiment affecting IT.
• Geopolitical Tensions:
  • Russia’s deadliest strike on Kyiv since Trump–Putin summit.
  • NATO warns of escalating threats from Russia & China.
  Impact: Global risk-off sentiment favoring safe havens.

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.