Nifty 50 Faces Pressure Amid 50% U.S. Tariffs: Market Update for August 28, 2025

 

Market Overview – August 28, 2025

Indian equity markets opened under pressure on Thursday, August 28, 2025, as the U.S. implemented a 50% tariff on Indian goods. The Nifty 50 index fell to 24,539.05, down 173 points or 0.70%, while the BSE Sensex declined over 600 points to 80,203.19, reflecting investor concerns over the economic impact of the new tariffs. 

Key Market Drivers

U.S. Tariffs: The U.S. imposed additional 25% tariffs, bringing the total to 50%, citing India's continued purchase of Russian oil. This move has dampened investor sentiment and raised concerns about trade relations. 

Foreign Institutional Investors (FII) Outflows: FIIs net sold ₹6,517 crore in Indian equities on Tuesday, marking their highest selling since May 20, 2025. This outflow has added to the market's downward pressure. 

Sectoral Performance: All major sectors, including IT, power, and realty, are trading in the red, with declines of approximately 1% each. Midcap and small-cap stocks are also underperforming. 

Technical Outlook

Nifty 50: The index has breached key support levels, including the 50-day and 20-day EMAs, indicating a bearish trend. Immediate support is seen at 24,600, followed by 24,400. Resistance is at 24,900. 

Bank Nifty: The Bank Nifty index has broken below the 100-DEMA support and is forming a bearish pattern. Support levels are at 54,000 and 53,800, with resistance at 55,000. 

Investment Strategy

Given the current market volatility, investors are advised to adopt a cautious approach. Monitoring key support levels and sectoral performances will be crucial in making informed invest

ment decisions. 

---Sources:

Times of India

Reuters

Moneycontrol

Livemint

Business Standard

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