Market Wrap

Indian equities slipped into the red on August 11, 2025, as escalating trade tensions weighed on sentiment. The Sensex dropped 308 points (0.38%) to 80,710, while the Nifty 50 fell 66 points (0.27%) to 24,649.55. Weakness in global trade outlook followed former U.S. President Donald Trump’s hint at a possible 25% tariff on Indian goods if re-elected, sparking fresh foreign investor selling. Banking heavyweight IndusInd Bank was the day’s standout, rallying sharply after securing RBI approval to appoint Rajeev Anand as MD & CEO from August 25 a move seen as a post-crisis confidence boost after its Q1 return to profit. Globally, markets saw mixed cues: weak U.S. jobs and ISM data fueled hopes of a Fed rate cut, while upbeat tech earnings, including from Palantir, lent support to U.S. indices.

What’s Ahead

Markets are likely to stay volatile as investors weigh domestic inflation concerns and shifting global trade dynamics. The RBI has reiterated that inflation remains its top priority, hinting at possible action if price pressures persist. All eyes will be on July CPI data due next week, which could shape rate expectations. Internationally, GDP readings from the UK, Eurozone, and Japan, along with U.S. inflation data, will guide global market mood. Developments in the U.S.–India trade dialogue and the broader U.S.–China tariff narrative will also be key drivers, with potential spillover effects on commodities, currencies, and sectoral trends in India.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty 50 tumbled 232.85 points to 24,363.30 (-0.95%) as broad-based selling gripped the market, with only 9 gainers against 41 losers. Heavyweights like HDFC Bank (-1.17%), ICICI Bank (-0.58%), and Infosys (-0.90%) were major drags, while NTPC (+1.59%) and Titan (+1.49%) lent limited support. The index closed near its day’s low, reflecting sustained selling pressure amid weak sentiment triggered by tariff hikes, lacklustre large-cap earnings, and persistent FII outflows. RSI slipped below 40 to a 3-month low, suggesting weakening momentum. Key support is at 24,149/24,016, while resistance lies at 24,578/24,710.

Bank Nifty

Bank Nifty dropped 516.25 points to 55,004.90 (-0.93%) as all 12 constituents ended in the red, led by sharp declines in IndusInd Bank (-3.32%) and Kotak Bank (-1.86%), while heavyweights HDFC Bank (-1.17%) and ICICI Bank (-0.58%) added significant pressure. The index broke below 55,500 and ended near its day’s low with no intraday recovery, highlighting persistent bearish sentiment in both private and PSU banks. RSI weakened further, pointing to continued downward momentum. Immediate support is seen at 54,436/54,084 and resistance at 55,574/55,926.

Sensex

Sensex fell 765.47 points to 79,857.79 (-0.95%) as financial stocks and other heavyweights dragged the market lower. Decliners outnumbered gainers 20 to 10, with HDFC Bank (-1.17%), ICICI Bank (-0.58%), and Reliance (-0.74%) leading the downside. NTPC (+1.59%) and Titan (+1.49%) provided limited upside cushion. Selling was broad-based, particularly in banking and IT, with Infosys (-0.90%) and Wipro (-1.23%) adding to the weakness. Near-term support stands at 79,148/78,708, while resistance is at 80,568/81,007.

FinNifty

FinNifty dropped 236.55 points to 26,167.35 (-0.90%) as weakness in heavyweight banks and NBFCs weighed on sentiment. HDFC Bank (-1.17%), ICICI Bank (-0.58%), Kotak Bank (-1.86%), and Bajaj Finance (-0.91%) were key drags, with only 2 of 19 constituents managing to advance. The lack of notable gainers and broad-based selling reflected strong bearish sentiment in the sector. Key support levels are placed at 25,928/25,785, while resistance is at 26,406/26,549.