Caution ahead of U.S. Fed Chair Jerome Powell’s Jackson Hole address, coupled with renewed worries over global trade and geopolitical tensions, weighed on equities as investors pared risk exposure. Domestic profit-booking after the recent rally and a pause in fresh FPI inflows added to the weakness.

With global markets closely tracking central bank signals, analysts warn that any unexpected commentary or macro data could spark heightened volatility in the near term, said Ajit Mishra – SVP, Research, Religare Broking.

Foreign Institutional Investors (FIIs) continued to be net cash sellers in India, offloading equities worth ₹24,128.5 crore as of August 2025 (month-to-date), said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Across key emerging markets, Foreign Portfolio Investors (FPI) activity in August 2025 has been mixed. India, Brazil, Malaysia, South Korea, Taiwan, Thailand, and Vietnam saw outflows of US$1,715 mn, US$59 mn, US$522 mn, US$542 mn, US$677 mn, US$149 mn, and US$1,084 mn, respectively. Conversely, Indonesia and the Philippines bucked the trend, recording inflows of US$515 mn and US$6 mn, respectively, he said.

SBI Securities noted that while the evening star formation is significant, confirmation is essential - preferably through another lower close on Monday - which would indicate that sellers are gaining control and the recent pullback is losing momentum.

On the technical front, immediate support for the Nifty index is seen in the 24,850–24,800 range. A decisive breach below 24,800 could trigger a sharper decline toward 24,650. On the upside, resistance is placed in the 25,100–25,150 zone.

One of the key reasons for today’s market decline was caution ahead of U.S. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium, which is expected to provide critical insights into the global liquidity outlook and future interest rate trajectory, said Vinod Nair, Head of Research, Geojit Investments.

Additionally, the U.S. using trade tariffs on India as a strategic tool in its stance against Russia has raised near-term concerns among institutional investors. However, strong domestic indicators continue to offer support: the PMI has touched a record high, and the recently proposed indirect tax reliefs are expected to boost consumption, underscoring India’s economic resilience, he said.

The broader market also ended in negative terrain, in sync with the benchmark indices. The midcap and smallcap segments also saw mild pressure, with Nifty Midcap 100 down 0.14%, Nifty Smallcap 100 slipping 0.26%, and Nifty Smallcap 50 falling 0.27%.

On the volatility front, India VIX rose 3.12% to 11.73, indicating increased caution among investors ahead of global cues.

The market saw broad-based selling, with 23 out of 30 Sensex constituents ending in negative terrain. The top losers on the Sensex pack were Asian Paints (-2.45%), UltraTech Cement (-1.94%), Tata Steel (-1.92%), HCL Tech (-1.68%), and Kotak Mahindra Bank (-1.68%). Other major losers included Adani Ports (-1.54%), TCS (-1.53%), and HDFC Bank (-1.22%).

On the other hand, M&M (+0.79%), Maruti (+0.65%), BEL (+0.32%), Bharti Airtel (+0.20%), and Titan (+0.10%) were among notable gainers.

Ending a six-session gaining streak, the BSE Sensex ended 694 points lower at 81,306.85, and the NSE Nifty dropped 214 points to settle at 24,870.10. Investors turned cautious ahead of U.S. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium later today.

Shares of Lokesh Machines hit the 10% upper circuit after the company received a registration certificate from the Director General of Quality Assurance (DGQA), enabling it to manufacture defence items. The company, which is engaged in producing special purpose machines, small arms, and cylinder heads for vehicles, is expected to benefit from this move as it expands its presence in the defence manufacturing space.

Vodafone Idea shares surged by almost as 9% over reports that the government may give a relief package to the telecom company over its AGR dues. As of 3:00 PM today, the scrip was trading at ₹7.12, up 8.70%.

The share price of Mazagon Dock has slipped by almost 2% today. In a recent note brokerage house JPMorgan pointed out that the state-run company could have more potential downside risks.

Among the top gainers of Sensex on BSE include M&M, BEL, Sun Pharma, Maruti, Eternal, Titan, and Bajaj Finance. Top losers of the index, as of 13:30, include Bharti Airtel, Infosys, and Powergrid Infrastructure.

Edelweiss Financial Services has announced that WestBridge Capital will acquire a 15% stake in Edelweiss Asset Management, the asset manager of Edelweiss Mutual Fund (Edelweiss MF), for ₹450 crore.

"Edelweiss MF has scaled rapidly through focused execution - consistent fund performance, product innovation, and widening distribution strength. We are delighted to partner with WestBridge Capital - a likeminded and long-term partner - whose strategic insights and ecosystem will accelerate our next phase of growth," said Radhika Gupta, MD & CEO, Edelweiss MF, in a statement.

Top 5 losers of Nifty 50 on the NSE at around 1 PM include Asian Paints, Grasim Industries, Adani Enterprises, Hero MotoCorp, and ITC.

Asian Paints and Grasim Industries see a drop of 2.07% at the time of writing.

The top 5 gainers of Nifty 50, on the NSE at around 1 PM, are Bharat Electronics Ltd., Mahindra & Mahindra, Maruti Suzuki, Sun Pharma, and Dr. Reddy's Laboratories Ltd.

Of these, 3 stocks are seeing more than 0.5% intraday gains.

Sensex, by intraday trade today, has fallen by almost 600 points, while the Nifty 50 has come down the 24,900-mark again.

Aditya Birla Fashion and Retail shares rise by more than 7%, bringing its price to ₹81.05 due to festive season demand as well as retail expansion. The stock is trading 80% lower than its 52-week high of ₹365.

JK Cement saw a dip in its share price by 3.37%, bringing it to Rs 6,893.50. The shares opened at Rs 7,120.00, and hit an intraday high of Rs 7,202.00, before it saw a dip, bringing it to a day low of Rs 6,875.00.

Zee Entertainment share prices rise to ₹124, a steep 5.77% rise, as the company has decided to issue an upcoming dividend of ₹2.43 per share due on 29 August 2025.

Meanwhile, investors stayed optimistic despite Aditya Birla Finance’s Delhi HC challenge to the recent arbitral award.

Shares of gaming companies extended their losing streak on Friday after Parliament passed a bill banning online money-based games. Nazara Technologies, backed by Rekha Jhunjhunwala, Delta Corp and OnMobile Global declined up to 5% today, in sync with weak broader market. 

The benchmark indices continue to slide down, with the Nifty 50 slipping by 169.80 points (0.68%) to 24,913.95, and the Sensex 30 by 553.29 (0.67%), bringing to 81,447.42.

Nifty Bank is trading in red, seeing a slide of 495 points, or 1%. Major laggards are here below.

Nifty Media is the only sectoral index trading in green, seeing a rise by 1% from previous day's closing. Top gainers are Zee, Saregama, PVR Inox, Network18 and Hathaway.

The shares of the bank dipped by 2.4% in today's trading session, after it closed at steep 9% rise yesterday. The shares are currently priced at ₹95.22 apiece. 

Yesterday's uptick is attributed to remarks from DIPAM Secretary Arunish Chawla, confirming that qualified bidders have nearly completed due diligence on the bank’s divestment, and the process could wrap up by September.

Sectoral indices were largely in the red in early trade , with Nifty Metal leading the laggards, down 0.76% at 9,421.95, followed by Realty, Private Bank, Nifty IT, Financial Services, and FMCG. On the positive side, Nifty Media gained 0.44% at 1,645.55, while Nifty Consumer Durables inched up. Pharma, PSU Bank, Auto, and Healthcare indices were largely flat with marginal declines, reflecting a cautious market sentiment.

At 9:32 a.m., the Sensex was down 405.58 points, or 0.49%, to 81,595.13, tracking weakness across key heavyweights. The 3o-share index opened lower at 81,951.48 against the previous close of 82,000.71.

Similarly, the Nifty50 was trading 126.60 points, or 0.50%, lower at 24,990.10. The index opened weak at 25,064.15 against the previous close and slipped further to touch an intraday low of 24,952.45, while managing a high of 25,084.85 in early trade.

The top gainers were BEL, Trent, M&M, L&T, Bajaj Finance, Bharti Airtel, Sun Pharma. BEL shares rose 0.82% to ₹377.20 and Trent added 0.58% to ₹5,415.95, emerging as the top movers. M&M, L&T, and Bajaj Finance also edged higher, while Bharti Airtel and Sun Pharma posted marginal gains.

On the downside, Asian Paints slipped 0.99% to ₹2,541.45, leading the losers’ pack. HCL Tech fell 0.81% to ₹1,480.70, while ICICI Bank, Adani Ports, and ITC also traded lower.

Among index heavyweights, Reliance Industries was down 0.57% at ₹1,416.50. HDFC Bank and TCS slipped over 0.4% each, while auto majors Maruti Suzuki and Tata Motors saw mild declines.

The BSE Sensex index fell 220 points to 81,779 in early deals, while the Nifty was near the 25,050-mark, trading at 25,004, down 79 points.

Overall, the market breadth was negative, with IT, banks, and FMCG counters dragging, even as select capital goods, PSU, and pharma names lent support.

The bulls continued their winning run for the sixth consecutive session, with the Nifty index reclaiming the 61.8% retracement of the fall from 25,669 to 24,338, placed at 25,160. The 50-DMA at 25,010 now serves as immediate support, said Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd.

“Momentum indicators and oscillators remain in the positive zone, confirming a bullish undertone. On the upside, a sustained move above 25,160 could open the path towards 25,250 and 25,350. However, chasing the index at higher levels is not advisable, as the risk-reward turns unfavourable. A buy-on-dips approach would be more prudent," he said.

All major Asian markets were trading higher on Friday ahead of Powell’s remarks, which are expected to provide fresh direction on the Fed’s policy path.

South Korea’s KOSPI climbed nearly 1%, Japan’s Nikkei gained 0.1%, and Hong Kong’s Hang Seng up 0.2%. Other regional markets, including Singapore, Taiwan, and China, were trading in a narrow positive range.

On Thursday, all three major U.S. indices extended their losing streak ahead of the Jackson Hole Economic Policy Symposium, with the S&P 500 slipping 0.4% for its fifth straight decline, while the Dow Jones and Nasdaq each lost 0.34%.

Investors remained wary after Fed minutes indicated concerns around the labor market and inflation, even as policymakers opined it premature to cut rates.

Shares of Vedanta, Wipro, Apollo Hospitals, Hindustan Unilever, Titagarh Rail Systems, Texmaco Rail & Engineering, NTPC Green Energy, Yes Bank, Eternal (Zomato & Blinkit parent), Hindustan Foods, SJVN, Hikal, GHV Infra Projects, and R Systems International will be in focus today.

Indian stock markets are likely to open on a cautious note Friday, in line with mixed global trends, as investors await cues from U.S. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium later in the day.

At 7:30 a.m., GIFT Nifty futures traded 28 points lower at 25,084, hinting at a subdued start for the Sensex and Nifty.

On Thursday, the BSE Sensex and NSE Nifty continued their gaining streak for the sixth straight session, registering their longest rally in two months. The 30-share Sensex rose by 0.17% to reclaim the crucial 82,000 mark, while the Nifty added 0.13% to settle at 25,083.75, as cautious prevailed in the market ahead of the Jackson Hole Symposium.