Indian benchmark indices Sensex and Nifty stayed under pressure through the afternoon session on August 28, even as they managed to recover slightly from intraday lows. The volatility was largely driven by the monthly derivatives expiry, which triggered sharp price swings across key stocks. Adding to the cautious mood, the additional 25 percent tariffs on Russian oil purchases that came into effect yesterday weighed on sentiment.
Around noon, the Sensex was down 318.53 points, or 0.39 percent, at 80,468.01, while the Nifty slipped 83.70 points, or 0.34 percent, to 24,628.35. Market breadth remained weak with 1,499 stocks advancing, 2,010 declining, and 146 unchanged.
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Broader markets mirrored this pressure, while the India VIX cooled off from the day’s highs, indicating a slight easing in volatility.
On the sectoral front, the Nifty Consumer Durables index emerged as the top gainer in an otherwise subdued market. Media and Metal indices also posted modest gains.
However, Nifty IT led the pack of losers, falling nearly one percent, followed by Realty stocks.
Highlighting the macro backdrop, Vikram Kasat, Head - Advisory at PL Capital, pointed out that India now faces one of the harshest tariff regimes globally.
“India’s effective rate on exports to the US has surged to 34 percent, second only to China, and far above ASEAN’s 16 percent. The real blind spot, however, lies in services. India’s IT and business service exports to the US are nearly three times the size of goods exports and account for almost 6 percent of GDP. While untouched for now, any US move on services would strike at the core of India’s growth model,” he said.
He added that the implications go beyond tariffs. “At stake is India’s integration into global value chains. Without a trade deal with the US, India risks losing not just exports, but also investment flows and job creation,” Kasat warned.
Anand James, Chief Market Strategist at Geojit Financial Services, noted that after a near two percent slide in just four sessions, the markets may find room for an upside bounce.
“Immediate resistances are seen at 24,780 and 24,870, while failure to sustain above 24,630 or to clear 24,900 will indicate that the bears still hold the upper hand,” he said.
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