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Key gauges end lower in highly volatile trade on Tuesday
Aug-12-2025

Indian equity benchmarks failed to build on Monday’s gains and ended nearly half a percent lower in a highly volatile trade on Tuesday, dragged down by blue-chip bank stocks and caution ahead of domestic and US inflation data. Investors were in a wait-and-watch mode ahead of the US CPI inflation data and are also awaited cues from the US-Russia talks on August 15. 

Some of the important factors in today’s trade:

Trump tariffs to impact 55% of total merchandise exports to US: Amid concerns over India’s exports, Minister of State for Finance Ministry Pankaj Chaudhary has said that about 55 per cent of the country’s total merchandise exports to the US will be subject to 25 per cent reciprocal tariff. 

India bans imports of certain jute products, ropes from Bangladesh through all land routes: The Directorate General of Foreign Trade (DGFT) has said that India banned imports of certain jute products and ropes from Bangladesh through all land routes with immediate effect, amid strained relations between the two countries. However, it said these imports are allowed through the Nhava Sheva Seaport. 

Lok Sabha passes new Income Tax Bill: The Lok Sabha has passed the revised Income Tax Bill, 2025 without any debate. The new Income Tax Bill will allow individuals to claim TDS refunds even if they fail to file I-T return within due date. The new Income Tax Bill, which from April 1, 2026, will replace the Income Tax Act, 1961.

Rupee rises marginally against US Dollar: Indian rupee consolidated in a narrow range to marginally higher against the US dollar amid a negative trend in domestic equities. 

Global front: European markets were trading mostly in green, as the U.S. extended its pause on higher tariffs for Chinese goods until November 10, averting an immediate escalation in the trade war. Asian markets settled mostly higher as optimism about the US Fed cutting interest rate at its next meeting aided market sentiment. 

Finally, the BSE Sensex fell 368.49 points or 0.46% to 80,235.59 and the CNX Nifty was down by 97.65 points or 0.40% to 24,487.40.    

The BSE Sensex touched high and low of 80,997.67 and 80,164.36 respectively. There were 11 stocks advancing against 19 stocks declining on the index.  

The broader indices ended mixed; the BSE Mid cap index fell 0.25%, while Small cap index was up by 0.04%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.60%, Auto up by 0.58%, Healthcare up by 0.42%, Utilities up by 0.38% and Energy up by 0.37%, while Bankex down by 0.83%, Capital Goods down by 0.76%, Realty down by 0.75%, Consumer Durables down by 0.51% and Telecom down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.06%, Tech Mahindra up by 1.90%, Mahindra & Mahindra up by 1.64%, NTPC up by 1.16% and Tata Steel up by 0.85%. On the flip side, Bajaj Finance down by 2.87%, Trent down by 1.36%, Hindustan Unilever down by 1.35%, HDFC Bank down by 1.31% and Eternal down by 1.10% were the top losers.

Meanwhile, amid concerns over India’s exports, Minister of State for Finance Ministry Pankaj Chaudhary has said that about 55 per cent of the country’s total merchandise exports to the US will be subject to 25 per cent reciprocal tariff. He added a combination of different factors, such as product differentiation, demand, quality, and contractual arrangements, would determine the impact on India's exports.

He said the government attaches utmost importance to protecting and promoting welfare of farmers, entrepreneurs, exporters, MSMEs, and will take all necessary steps to secure the national interest. He said a reciprocal tariff of 25 per cent is proposed to be imposed on certain goods exported from India to the US starting from August 7.

US President Donald Trump has also announced an additional 25 per cent tariff, to be effective from August 27. With this, the total tariff on Indian goods to the US is now 50 per cent. Meanwhile, the commerce ministry data showed that during April-June, the country's exports to the US increased by 22.18 per cent to $25.51 billion, while imports rose 11.68 per cent to $12.86 billion.

The CNX Nifty traded in a range of 24,702.60 and 24,465.65. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.03%, Maruti Suzuki up by 1.98%, Hero MotoCorp up by 1.79%, Mahindra & Mahindra up by 1.56% and NTPC up by 1.19%. On the flip side, Bajaj Finance down by 2.83%, Trent down by 1.39%, Hindustan Unilever down by 1.37%, Nestle down by 1.36% and Eternal down by 1.33% were the top losers.

European markets were trading mostly in green; UK’s FTSE 100 increased 15.03 points or 0.16% to 9,144.74 and France’s CAC rose 6.98 points or 0.09% to 7,705.50, while Germany’s DAX lost 100.34 points or 0.42% to 23,981.00.

Asian markets settled mostly higher on Tuesday ahead of a key US inflation report due later in the day that might shape the US Federal Reserve's interest rate path. Japanese markets outperformed, the highest closing ever, as traders returned to their desks after a holiday on Monday. Chinese and Hong Kong shares gained as the United States and China confirmed a 90-day extension of their trade truce, as expected. This keeps tariffs steady until November. However, Seoul shares declined as investors were awaiting the outcome of consultations between the government and the ruling party on scrapping earlier plans to tighten capital gains tax rules. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,665.92

18.37

0.50

Hang Seng

24,969.68

62.87

0.25

Jakarta Composite

7,791.70

185.77

2.44

KLSE Composite

1,567.90

4.66

0.30

Nikkei 225

42,718.17

897.69

2.15

Straits Times

4,220.72

-12.06

-0.29

KOSPI Composite

3,189.91

-16.86

-0.53

Taiwan Weighted

24,158.36

22.86

0.09

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