Tariff jitters, weak earnings outlook drag Nifty towards 25,000, Sensex down 400 points

Nifty 50 and Sensex fell for the fourth straight session.

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26 Aug, 2025 12:21

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After starting the session with mild gains, a spurt of selling pressure dragged Dalal Street deeper into the red in afternoon trade, as investors rushed to sell their holdings and book some profits, following U.S. President Donald Trump's latest tariff update. The Nifty 50 and Sensex extended their losing streak to the fourth consecutive session on Monday, July 14.

The markets extended the ongoing sell-off, as President Trump slapped thirty percent tariffs on the European Union and Mexico, starting August 1. Further, the lack of a mini-trade deal between U.S. and India has continued to spark tensions.

Traders and investors are also looking towards the ongoing earnings season to guide further cues, with a slew of Nifty 50 companies set to showcase their results later this week. The overall expectation is of a weaker earnings season in the June quarter, with hopes of stronger results H2FY26 onwards.

At 12:02 p.m., the Sensex was down 411.17 points or 0.50 percent at 82,089.30, and the Nifty was down 113.25 points or 0.45 percent at 25,036.60. About 1584 shares advanced, 1986 shares declined, and 134 shares unchanged.

The broader end of the markets outperformed, as investors doubled down on their mid-cap and small-cap bets. The Nifty Midcap 100 index gained around 0.3 percent, while the Nifty Smallcap 100 jumped half a percent.

On the sectoral front, the picture was mixed. The Nifty IT index faced the highest selling, tumbling over 1.3 percent as disappointment around IT bellwether TCS's first quarter earnings continued to pressure the index. Bank Nifty and Nifty O&G was also in the red.

On the flip side, public-sector lenders outperformed, with the Nifty PSU Bank index gaining half a percent. The Nifty Media and Nifty Healthcare indices also rose to trade in the green.

In the current environment of heightened volatility and mixed market signals, traders are advised to follow a cautious "sell on rise" strategy, especially when trading with leverage. Booking partial profits on rallies and using tight trailing stop-losses is recommended to manage risk effectively.

"Fresh long positions should only be considered if the Nifty sustains above the 25,378 level. While the broader market undertone remains cautiously bullish, it is essential to keep a close watch on key technical levels and global market cues," said Hardik Matalia, Derivative Analyst, Choice Broking.