Markets snap 6-day rally: Sensex down 400 pts, Nifty below 25,000 as bank, metal, IT stocks drag

Nifty’s broader structure remains constructive, with higher lows indicating persistent buying interest.

Benchmark indices Nifty and Sensex were off to a weak start, snapping their 6-day gaining streak on Friday, August 22, as investors booked profit at elevated levels. Auto, bank, metal and IT stocks were the big drags while the broader market mirrored weak trends to edge lower.

At about 9:40 am, the Sensex was down 396.99 points or 0.48 percent at 81,603.72, and the Nifty was down 127.65 points or 0.51 percent at 24,956.10. About 1246 shares advanced, 1661 shares declined, and 135 shares were unchanged.

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"The six-day rally in equities could run into resistance as Trump’s proposed tariffs loom large. If the 25 percent levy takes effect in August—as now seems likely—the drag on India’s growth could exceed the earlier 20–30 basis point estimates based on reciprocal tariffs. Markets will have to price in that risk," V K Vijayakumar of Geojit Investments Ltd said. "However, a key development has been the relative strength of largecaps, a trend that appears both justified and sustainable, he added.

At the open, sectoral trends were mixed. Pharma, media, energy and consumer durables posted modest gains, while FMCG and realty were flat. On the other hand, metals, banks, IT, oil & gas and autos were under pressure, dragging broader indices lower. The India VIX inched up 2.1 percent, signalling some uptick in market volatility. Midcap and smallcap indices also opened in the red.

Among individual stocks, Apollo Hospitals Enterprises fell 1 percent to Rs 7,852 in morning deals on August 22 after Suneeta Reddy, promoter and managing director of the company, offloaded 1.32 percent of her holding in the healthcare major through a block transaction, Bloomberg data showed. The deal, involving approximately 18.97 lakh shares, is valued at Rs 1,489 crore and has a floor price of Rs 7,850 per share.

FMCG bellwether, Hindustan Unilever, traded in the red after it announced a leadership transition, appointing Niranjan Gupta as its next Chief Financial Officer (CFO) and member of the Management Committee. Gupta will take charge as CFO and Executive Director, Finance from November 1, 2025, succeeding Ritesh Tiwari, who has been elevated as Global Head of M&A and Treasury at Unilever Plc.

Technical View

Nifty’s broader structure remains constructive, with higher lows indicating persistent buying interest. The near-equal positioning of both call and put writers highlights the possibility of a consolidation phase, but a sustained move above 25,150 could unlock the next leg higher towards 25,250, likely forcing call writers into short covering. Support zones have shifted higher, with 24,850–25,000 now emerging as the key demand area. Firm positioning by put writers at lower strikes further strengthens the positive outlook. Unless the index decisively breaches 24,850, bulls are expected to hold the upper hand. For now, a “buy-on-dips” strategy remains the most prudent approach, with traders watching closely for a breakout above 25,150 to confirm the next leg of upside momentum.

L&T, Bajaj Finance, M&M, Jio Financial Services, and Cipla were the top gainers on the Nifty. SBI Life Insurance, Grasim, Hero MotoCorp, Asian Paints, and HCL Tech were the major laggards.

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