Sensex tumbles 600 pts, Nifty below 24,800 as US notifies India of additional tariffs; bank, pharma, metal stocks lead decline

The broader setup between the swing high of 25,150 and swing low of 24,850 indicates limited upside and a prolonged consolidation phase.

Benchmark indices Nifty and Sensex fell 0.7 percent each in morning trade on August 26, weighed down by the additional 25% duties on Indian goods scheduled to take effect on August 27. Bank, metal and pharma stocks were major laggards while the mid and smallcaps also mirrored weak trends in early trade.

At 10:40 am, the Sensex was down 612.85 points or 0.75 percent at 81,023.06, and the Nifty was down 182.50 points or 0.73 percent at 24,785.25. About 1,028 shares advanced, 2,344 shares declined, and 133 shares were unchanged.

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Earlier this month, Trump said the US would raise tariffs on Indian goods to 50 percent from 25 percent, citing New Delhi’s purchases of Russian oil. The move is intended to curb India’s energy trade with Moscow and increase pressure on Russia to halt its war in Ukraine.

"Despite muted earnings growth and challenges such as high tariffs, Indian equities have held firm, making the market the most expensive globally. While foreign investors have remained steady sellers, strong domestic institutional inflows have more than offset the outflows, keeping sentiment buoyant. With liquidity emerging as the key driver of this resilience—and flows expected to stay strong—analysts believe a sharp correction is unlikely, and elevated valuations could persist," V K Vijayakumar of Geojit Investments Ltd said.

Among individual stocks, Sai Life Sciences slipped as much as 4 percent after private equity firm TPG Asia offloaded its entire 15.2 percent holding in the Hyderabad-based CRDMO through block deals, CNBC TV-18 reported. The sale, estimated at nearly Rs 2,810 crore, involves about 3.16 crore shares and carries a floor price of Rs 874 per share, roughly at a 3.5 percent discount from the previous close of Rs 906 per share.

Titan shares slipped due to a weak market mood even as Bernstein initiated coverage with an “outperform” rating and a target price of Rs 4,200, citing the company’s strong positioning to benefit from rising formalisation and evolving consumer preferences in India. The brokerage highlighted Titan’s track record of delivering a 23 percent EPS CAGR over the past two decades and noted that the stock is trading at a five-year low valuation.

Reliance Industries shares were in focus after UBS resumed coverage on the stock with a “buy” call and a price target of Rs 1,750, implying a 24 percent upside from Monday’s close. The brokerage said RIL is well placed for a re-rating on the back of its value-unlocking prospects and described the conglomerate as a key player shaping India’s digital and new energy future.

Technical View

With Nifty failing to display directional strength, the index now clings to its crucial support at 24,800. The broader setup between the swing high of 25,150 and swing low of 24,850 indicates limited upside and a prolonged consolidation phase. Renewed call writing at higher strikes, coupled with sustained put additions at similar levels, further validates the sideways structure. Unless the index decisively clears 25,150, upward momentum is likely to remain capped.

On the downside, sustaining above 24,800 is critical to prevent deeper corrections. For now, a “sell on rise” approach appears prudent, with traders awaiting a clear breakout above 25,100 or a breakdown below 24,800 for the next directional move. Ahead of the key tariff announcement on the 27th, the market is likely to witness sideways-to-volatile sessions.

HUL, Bajaj Auto, TCS and Infosys were the top gainers on the Nifty. Laggards on the index included Tata Steel, Dr Reddy's, ICICI Bank, Bharat Electronics, and Hindalco.

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