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A wave of sharp selling engulfed the Indian stock market on Tuesday, August 26, dragging the benchmarks and second-rung midcap and smallcap indices down by over a per cent each, while eroding investors' wealth by about ₹6 lakh crore in a single day.

The Sensex closed at 80,786.54, falling 849 points, or 1.04 per cent, while the Nifty 50 ended with a loss of 256 points, or 1.02 per cent, at 24,712.05. The BSE Midcap and Smallcap indices plunged 1.34 per cent and 1.68 per cent, respectively.

Investors lost about ₹6 lakh crore in a single session as the overall market capitalisation of BSE-listed firms dropped to nearly ₹449 lakh crore from ₹455 lakh crore on Monday.

Indian equities witnessed a sharp selloff after the US administration issued a draft notice to impose up to 50 per cent tariffs on Indian exports to the US.

A notice posted by the Department of Homeland Security mentioned that the increased levies would hit Indian products “that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on August 27, 2025.”

"Domestic market sentiment turned cautious as the US penalty tariff deadline expires tomorrow. The persistent depreciation of the Indian rupee is adding pressure and may further impact foreign institutional inflows," said Vinod Nair, Head of Research, Geojit Investments.

"Investors are closely monitoring the Government of India’s efforts to support economic growth, including proposed GST rate revisions and sector-specific relief measures for industries affected by higher tariffs," Nair said.

As many as 41 stocks ended in the red in the Nifty index, among which Shriram Finance (down 4.03 per cent), Sun Pharma (down 3.35 per cent), and Tata Steel (down 2.87 per cent) were at the top.

Shares of Eicher Motors (up 2.68 per cent), Hindustan Unilever (up 2.32 per cent), and Maruti Suzuki India (up 1.85 per cent) were the top gainers.

Barring Nifty FMCG (up 0.91 per cent), which gained on expectations of increased consumption amid the proposed GST reforms, all sectoral indices ended with significant losses.

Nifty Realty, Consumer Durables, Oil & Gas, Healthcare, PSU Bank and Metal indices crashed almost 2 per cent each.

Nifty Bank suffered a loss of 1.25 per cent, while the Financial Services index dropped 1.35 per cent.

Vodafone Idea (138.1 crore shares), Ola Electric Mobility (47.1 crore shares), and Eternal (43.8 crore shares) were the most active stocks in terms of volume on the NSE.

Novateor Research Laboratories, Vision Cinemas, Sayaji Hotels (Pune), NPR Finance, and Gujarat State Financial Corporation were among the eight stocks that crashed more than 10 per cent on the BSE.

However, some 14 stocks, including Gorani Industries, Reliable Data Services, Shakti Press, Titan Biotech, and Nexus Surgical, defied weak market sentiment and surged over 10 per cent on the BSE.

Out of 4,241 stocks traded on the BSE, 1,220 advanced, while 2,891 declined. Some 130 stocks remained unchanged.

(This is a developing story. Please check back for fresh updates.)

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stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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