Indian Stock Market on a Volatile Path: Key Updates

August 29th, Friday, 

The Indian stock market opened flat today as investors remained cautious after enduring losses in previous sessions driven by the recent 50% US tariff on Indian exports. The benchmark Nifty 50 started at 24,466.70, marginally lower than its previous close of 24,500.90. The BSE Sensex opened at 80,010.83, slightly lower than its previous close of 80,080.57.

However, indices rose up in the early hours of the day. By 12.30 pm, Sensex reached 80,226 points, up by 0.18%.

Source: Tradingview

Similarly, Nifty50 also climbed up in the early hours to reach 24,528, up by 0.11%.

Source: Tradingview

However, in the broader market, sentiment has shifted more positively. Both the Nifty Midcap and Nifty Smallcap indices- after initial weakness- are now outperforming the headline indices. 

The Nifty Midcap index is up nearly 0.5%, and the Nifty Smallcap index is also trading in green. 

Now, what are the reasons for this sudden rise?

1. Persistent US Tariff Worries

The recent imposition of 50% US tariffs on Indian exports continues to haunt investor sentiment. With major export-driven sectors affected, concerns about sales volumes, corporate earnings, and job losses remain a key driver behind cautious trading. 

Stocks within textiles, metals, and IT sector have been pressured due to fears of reduced competitiveness in global markets. The ongoing policy uncertainty and absence of a quick resolution have kept buyers on the sidelines.

2. FII Selling versus DII Support

A notable dynamic in today’s session is the tug-of-war between FIIs and DIIs. FIIs have turned consistent net sellers amid global risk aversion and perceived overvaluation in domestic equities, building up short positions and adding to market pressure. 

DIIs, however, have stepped up buying activity, providing a buffer against sharper declines. 

3. New Government Reforms and Initiatives

Additionally, the market is closely tracking domestic policy interventions such as proposed GST cuts, which are expected to stimulate consumption in sectors like autos and consumer durables. Investors are also awaiting updates from major corporate events, including Reliance Industries’ AGM, which could provide fresh direction for market sentiment based on company outlooks and future growth plans.

Let’s look at the top 3 gainers and losers of the market:

Stock Name (Full)	Previous Close (₹)	Opening Price (₹)	Last Traded Price (₹)	% Change
Jindal Photo Ltd.	857.85	868.05	1,029.40	20.00%
Jindal Poly Investment & Finance Co.	721.35	724.40	865.60	20.00%
Kritika Wires Ltd.	7.71	7.86	9.25	19.97%

Source: NSE

And, the top 3 Losers are:

Stock Name (Full)	Previous Close (₹)	Opening Price (₹)	Last Traded Price (₹)	% Change
GSS Infotech Ltd.	32.80	32.80	29.69	-9.48%
Genus Power Infrastructures Ltd.	348.30	349.90	322.00	-7.55%
Balkrishna Paper Mills Ltd.	23.14	22.50	21.48	-7.17%

Source: NSE

Conclusion:

The Indian stock market opened flat on August 29, 2025, but regained momentum in the early hours, supported by midcap and smallcap strength. While persistent US tariff worries and continued FII selling weigh on sentiment, DII inflows and optimism around domestic reforms are providing stability. 

Going forward, the market’s trajectory will hinge on how global trade tensions unfold, alongside policy measures and cues from key corporate events.