The Indian stock market experienced a significant downturn on August 26, 2025, with both the Sensex and Nifty indices registering substantial losses. The Sensex, the benchmark index of the Bombay Stock Exchange (BSE), plummeted over 600 points, while the Nifty 50, the National Stock Exchange's (NSE) primary index, dipped below the 24,600 mark.

Market Performance:

• Sensex: The BSE Sensex closed at 80,786.54, a loss of 849.37 points or 1.04%. During the trading session, the Sensex opened at 81,377.39, reaching a high of 81,450.28 before declining to a low of 80,685.98.
• Nifty 50: The Nifty 50 settled at 24,712.05, down by 255.70 points or 1.02%.
• Broader Market Indices: The negative sentiment permeated across the broader market, with the Nifty Midcap 50 and Nifty Smallcap 50 also experiencing declines of 1.28% each.

Factors Influencing the Market Downturn:

The primary catalyst for this downturn appears to be the implementation of additional US tariffs on Indian exports. The imposition of a 25% tariff by the United States on Indian exports effectively doubles the cumulative tariff to 50%, creating concerns about the impact on export-oriented sectors.

Sectoral Performance:

Most sectors experienced selling pressure, contributing to the overall market decline. However, the auto and FMCG (Fast Moving Consumer Goods) sectors fared relatively better.

Stock-Specific Movements:

• Hero MotoCorp: While the broader market faced headwinds, Hero MotoCorp experienced a marginal increase of 0.19%, with its share price reaching Rs 5,073.40. Despite the day's positive movement, analysts have provided mixed estimates for Hero MotoCorp's future price, ranging from Rs 3,630.00 to Rs 6,200.00.
• Eternal Ltd: Eternal Ltd witnessed a decrease of -0.42% in its share price, closing at Rs 317.90. The stock's price has fluctuated recently, with analysts' estimates varying widely from Rs 170.00 to Rs 417.00.

Expert Opinions and Market Outlook:

• Bearish Signals: Sudeep Shah from SBI Securities noted that the Nifty 50 had fallen below its 20-day and 50-day EMA (Exponential Moving Average), signaling weakening near-term momentum. He also pointed out a bearish crossover on the daily chart's RSI (Relative Strength Index), suggesting potential continued weakness.
• Support Levels: According to Shah, the 100-day EMA zone of 24,640-24,600 is expected to act as immediate support for the Nifty 50 index, with a potential correction down to 24,400 if this level is breached.
• Potential for a Bounce: Dr. Praveen Dwarakanath from Hedged.in suggested that momentum indicators entering oversold territory could lead to a bounce from the support level.

Global Cues:

Global market cues presented a mixed picture. Asian markets traded mixed, while the US stock market closed higher, with the S&P 500 reaching an intra-day record high.

Impact of US Tariffs:

The newly imposed tariffs are expected to have a detrimental effect, especially on sectors with high exports to the United States. Sectors such as textiles and auto components could face significant challenges. Some anticipate the tariffs to climb as high as 63.9% for some sectors.