On Tuesday, August 26, 2025, the Indian benchmark indices, Sensex and Nifty, opened lower. This was primarily a result of weak global cues—Nifty-50 200 points and Sensex 650 points lower at the open.
Here’s a breakdown of the key factors that contributed to the market’s negative start:
Weak Global Markets: The downturn was influenced by the performance of global markets, particularly in Asia and the US. Asian markets were trading lower, following overnight losses on Wall Street.
US Market Performance: US stock markets had closed lower on Monday as investors awaited key economic data and quarterly earnings from major companies.
Trump’s Tariff Threat: A significant factor impacting market sentiment was the looming deadline for the implementation of new US tariffs on Indian goods. The threat of these tariffs created uncertainty and weighed on investor confidence.
GIFT Nifty: The GIFT Nifty, an indicator of how the Indian market is expected to open, was also trading lower, signaling a negative start for the domestic indices.
Foreign Institutional Investor (FII) Selling: FIIs were net sellers on the previous day, which further added to the negative sentiment.
While some domestic factors like proposed GST reforms and a good monsoon were seen as positive drivers, the external headwinds from global markets and geopolitical events were strong enough to cause a negative opening for Sensex and Nifty