In the week ended on Friday, 29 August 2025, the S&P BSE Sensex declined 1,497.20 points or 1.84% to settle at 79,809.65. The Nifty 50 index tumbled 443.25 points or 1.78% to settle at 24,426.85. The BSE Mid-Cap index plunged 2.72% to close at 44,642.31. The BSE Small-Cap index dropped 2.93% to end at 51,449.23.
Weekly Index Movement:
The domestic equity benchmarks closed higher on Monday, led by a rally in IT stocks after U.S. Federal Reserve Chair Jerome Powell signaled that rate cuts could begin as early as September. The S&P BSE Sensex advanced 329.06 points or 0.40% to 81,635.91. The Nifty 50 index rose 97.65 points or 0.39% to 24,967.75.
The key equity benchmarks ended with sharp losses on Tuesday, unsettled by concerns over potential U.S. trade actions. The S&P BSE Sensex dropped 849.37 points or 1.04% to 80,786.54. The Nifty 50 index tumbled 255.70 points or 1.02% to 24,712.05.
The domestic equity market remained closed on Wednesday on account of Ganesh Chaturthi.
The domestic equity benchmarks tumbled for a second straight session on Thursday as U.S. tariffs on Indian goods hit sentiment. Washington slapped 25% duties on key exports, stoking fears of trade tensions and economic fallout. The S&P BSE Sensex slumped 705.97 points, or 0.87%, to 80,080.57, while the Nifty 50 shed 211.15 points, or 0.85%, to 24,500.90. In two trading sessions, the Sensex fell 1.90% and the Nifty dropped 1.86%
The headline equity benchmarks ended with modest cuts on Friday, extending losses for the third consecutive session. In the barometer index, the S&P BSE Sensex declined 270.92 points or 0.34% to 79,809.65. The Nifty 50 index lost 74.05 points or 0.30% to 24,426.85. In three consecutive trading sessions, the Sensex slumped 2.23% and the Nifty tumbled 2.16%.
Economy:
Fitch Ratings has affirmed India’s Long-Term Foreign-Currency Issuer Default Rating at ‘BBB-’ with a Stable Outlook. While upcoming U.S. tariffs pose a moderate downside risk, Fitch notes the situation remains uncertain. The Trump administration plans to impose a 50% tariff on Indian goods starting August 27.
India’s industrial production growth quickened to 3.5% in July from 1.5% in June, data released by the National Statistical Office (NSO) on Thursday showed. The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of July 2025 are (-) 7.2%, 5.4% and 0.6%, respectively.
Trump Tariffs:
President Trump’s secondary U.S. tariffs of 25% on Indian shipments kicked in Wednesday, pushing overall duties on the country’s exports to 50%.
A global research house has reportedly stated that the risks to growth for the Indian economy have naturally become more real.
India’s top exports to the U.S., which are electrical machinery as well as gems and jewelry, face the largest tariff increases, the report stated. Trade talks between the Indian and U.S. delegations, however, are expected to continue.
Stocks in Spotlight:
Bajaj Auto declined 1.36%. The company said that the supplies of its electric scooter, Chetak, have resumed across all dealerships, after overcoming constraints caused by global rare earth magnet availability. The company has managed to restore production ahead of schedule and production and shipments recommenced as of August 20.
Signpost India added 2.59%. The company has secured the exclusive advertising rights for all the 67 key metro stations operated by Bangalore Metro Rail Project (BMRCL), with an expected revenue potential of Rs 600 to Rs 700 crore. The contract will remain in effect for nine years, until 2034.
Yes Bank fell 2.25%. The Reserve Bank of India approved Sumitomo Mitsui Banking Corporation's plan to acquire up to 24.99% stake and voting rights in the lender. The Japanese banking giant had earlier proposed a 20% acquisition, including a 13.19% stake purchase from State Bank of India and 6.81% from seven other shareholders such as Axis Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Federal Bank, Bandhan Bank, and IDFC First Bank
Protean eGov Technologies rallied 5.96%. The company secured an order worth Rs 1,160 crore from the Unique Identification Authority of India (UIDAI) to set up Aadhaar Kendras across the country.
Indusind Bank declined 4.16%. The bank’s said that its board has approved the appointment of Rajiv Anand as the managing director (MD) and chief executive officer (CEO) effective from August 25, 2025 for three years.
Global Markets:
South Korea’s central bank kept its policy rate unchanged at 2.5% for its second straight meeting despite an uncertain trade environment for the country.
Federal Reserve Chair Jerome Powell signaled that the central bank could begin easing monetary policy next month. In a tepid speech at the central bank’s annual conclave in Jackson Hole, Wyoming, Powell said that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
The Fed chief added that 'the balance of risks appear to be shifting” between the central bank’s dual mandate of full employment and stable prices. He cited “sweeping changes” in tax, trade and immigration policies.