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Sensex Today Tanks 849 Points | Nifty Below 24,750 | 4 Reasons Why Indian Stock Markets Are Falling
Tue, 26 Aug Closing

Sensex Today Tanks 849 Points | Nifty Below 24,750 | 4 Reasons Why Indian Stock Markets Are FallingImage source: Tackey/www.istockphoto.com

After opening the day lower, the benchmark indices continued their downward momentum, ended the session in red.

Indian equity markets indices Senex and Nifty ended lower amid reports that the US President notified additional 25% tariffs on India, thus placing the total tariff on India at 50%, with-effect-from 27 August.

At the closing bell, the BSE Sensex  closed lower by 849 points (down 1%).

Meanwhile, the NSE Nifty closed 255 points lower (down 1%).

Maruti Suzuki, TCS, HUL Tech among the top gainers today.

Sun Pharma, Tata Steel, Trent on the hand, were among the top losers today.

The GIFT Nifty was trading at  24,712 lower by 281 points at the time of writing.

The BSE MidCap index ended 1.3% lower and BSE SmallCap index ended 1.6% lower.

Sectoral indices are trading negative today with stocks in metal sector and realty sector witnessed selling pressure.

Now track the biggest movers of the stock market using stocks to watch today section. This should help you keep updated with the latest developments...

The rupee is trading at Rs 87.7 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% higher at Rs 100,871 per 10 grams.

Meanwhile, silver prices were trading 0.2% lower at Rs 115,664 per 1 kg.

Here are four reason why Indian share markets are falling:

#1 Trump Tariff Anxiety

The US is set to impose a 50% tariff on Indian exports starting August 27, dashing hopes of relief after a meeting between Trump and Putin. The Trump administration claims the tariff aims to pressure Russia to end its war in Ukraine.

India's exports to the US, including textiles, footwear, and gems, may be severely impacted by the tariff.

#2 Elevated valuation

India's stock market valuation is high, causing concerns due to weak earnings that haven't kept pace with market growth, resulting in an earnings-valuation mismatch. The market is currently trading at 19 times FY27 earnings. Experts expect earnings to improve by Q3FY26 due to various factors like festival season and good monsoon.

#3 FII continue selling Indian stocks

Foreign institutional investors (FIIs) have sold Indian equities worth ?28,217 crore in August, following ?47,667 crore worth of sales in July. They continue to invest in the primary market, focusing on new themes and businesses while reducing exposure to slower-growing sectors.

#4 Weak global cues

Global market sentiment turned weak after US President Donald Trump fired Federal Reserve Governor Lisa Cook over alleged mortgage loan misconduct.

Speaking of the stock market, research analyst Divya Grover, in her latest video, shares insights on the Parakar Flexicap Fund, a high-conviction, flexibly managed mutual fund.

She explains how the fund dynamically allocates across large, mid, and small cap stocks based on market conditions and valuations, aiming for long-term capital appreciation through fundamentally strong and attractively priced stocks.

Let's dig deeper into this.

Protean eGov Shares Surge on UIDAI Order

In the news from IT sector, on Tuesday, 26 August, Protean eGov Technologies Ltd.'s shares rose as much as 11% after the company announced that it had secured a work order from the Unique Identification Authority of India (UIDAI), Government of India, valued at approximately Rs 11.6 bn.

As part of the mandate, 188 districts' worth of district-level Aadhaar Seva Kendras (ASKs) must be established and operated by the official service provider. These centres will offer walk-in and appointment-based services for enrolment, updates, and other Aadhaar-related needs.

The agreement, which is set up as an outsourcing delivery of the public service project, will last for six years.

In May of this year, Protean eGov Technologies' stock fell sharply after the company declared it was no longer considered for the PAN 2.0 project by the Income Tax Department. LTIMindtree ultimately won the order.

Protean eGov Technologies Share Price - 6 Months

Ola Electric Shares Surges on PLI Boost

Moving on to the news from auto sector, Ola Electric Mobility, one of the nation's top producers of two-wheeler electric vehicles, surged an additional 5.3% following the company's Gen 3 scooter portfolio's PLI certification.

Ola Electric announced on Monday that it received certification under the Production Linked Incentive (PLI) Scheme for its Gen 3 scooter portfolio.

All seven of the Ola S1 Gen 3 scooters, which make up most of its sales, are included in the certification. Ola Electric can receive incentives from 13% to 18% of the determined sales value (DSV) until 2028 thanks to the PLI certification.

As it seeks to turn EBITDA positive, the company stated that the award will directly strengthen its cost structure and margins.

With this, Ola Electric's Gen 2 and Gen 3 scooter portfolios are now PLI-certified. As a result, the certification is expected to significantly boost Ola Electric's profitability from Q2 FY26 onwards.

To know what's moving the Indian stock markets today check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


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