Sensex and Nifty News: Indices Slip as Tariff Jitters and Powell’s Speech Weigh on Sentiment

India’s benchmark indices—Sensex and Nifty—broke their six-day winning streak on Friday, dragged down by broad-based selling across key sectors. The caution in markets wasn’t just domestic; global factors like looming US tariffs and Jerome Powell’s awaited Jackson Hole speech kept investors on edge.

Market Performance: Indices Break Momentum

The trading day ended with noticeable weakness across the board:

• Sensex slipped 693.86 points (0.85%) to close at 81,306.85
• Nifty 50 fell 213.65 points (0.85%) to end at 24,870.10

After six days of consecutive gains, the pause looked inevitable as investors chose profit-booking over risk-taking.

Sectoral Snapshot: Pharma & Durables Stand Tall

Almost every sector ended the day in the red, except for a few safe havens.

• Banking & Financials: Dropped up to 1% as HDFC Bank and ICICI Bank came under pressure.
• IT Stocks: After rallying 3% in the last three sessions, IT cooled off—down nearly 1% ahead of Powell’s remarks.
• Pharma & Consumer Durables: The only two sectors to close in green, highlighting selective investor interest.

Company Highlights: Movers and Shakers

A mixed day for heavyweights:

Top Losers (down up to 2% intraday):

• Hero MotoCorp
• HCL Technologies
• HDFC Bank
• Grasim Industries
• Asian Paints

Top Gainers:

• Bharat Electronics
• Bajaj Finance
• Mahindra & Mahindra
• Sun Pharma
• Trent

What Weighs on the Market? Key Factors Driving Sentiment

The slide wasn’t random—it was triggered by a mix of domestic selling and global nervousness.

1. Profit-Booking After a Rally

• After a six-day surge, investors booked profits.
• Selling was concentrated in financials and IT stocks, dragging the frontline indices lower.
• Recent gains on GST reforms and S&P’s sovereign rating upgrade prompted some investors to lock in profits.

2. Jitters Before Powell’s Jackson Hole Speech

Markets across the globe are waiting for US Fed Chair Jerome Powell’s commentary. Any hint on interest rate direction could shape the September Fed meeting, and Indian equities mirrored that nervousness.

3. India VIX Ticks Higher

• The India VIX, the fear gauge of the market, rose 2% to 11.59 levels.
• A rise in volatility expectations typically leads traders to cut positions, adding to the weakness.

4. Tariff Deadline Approaches

• Fresh concerns came from the 25% US tariffs set to take effect on August 27.
• Such tariffs could dent global trade flows and weigh on India’s growth trajectory.

5. Rupee Under Pressure

• The rupee weakened 11 paise to 87.36 against the US dollar in early trade.
• However, foreign inflows and cooling crude oil prices prevented a deeper fall.

6. Peter Navarro’s Comments on India

• White House trade adviser Peter Navarro reignited trade tensions, accusing India of “laundering” Russian oil.
• He warned that secondary tariffs on Indian goods could take effect from August 27, unsettling investor sentiment further.

7. Brent Crude Inches Higher

• Brent crude futures rose 0.3% to $67.85 per barrel.
• WTI crude gained 0.33%, trading near $64 per barrel.
• The backdrop remains uncertain with the Russia-Ukraine conflict showing no sign of easing.

Summary: Market Takes a Breather Amid Global Jitters

The Sensex and Nifty correction on Friday wasn’t just about domestic profit-taking—it was equally shaped by global headwinds. With Powell’s speech around the corner, US tariffs nearing implementation, and volatility rising, investors chose to step aside after a six-day rally.

While pharma and consumer durables stood resilient, financials, IT, and heavyweights dragged the indices lower. The coming week will likely remain choppy as global cues dominate market direction.