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Markets Slip After Weekly Gains Amid Rate Cut Hopes

By Mandar in Indian Market Insights —

Market Summary: August 25, 2025

Indian stock markets concluded the week ending August 25, 2025, with a cautious tone, ending a six-day winning streak.

  • The Sensex decreased by 693.86 points (0.85%) to close at 81,306.85.
  • The Nifty 50 fell by 213.65 points (0.85%), settling at 24,870.10, which is below 24,900.
  • Broad-based selling was observed across sectors, with exceptions in media and pharmaceuticals.

Sectoral Performance

  • Media stocks experienced a gain of about 1%.
  • Pharma stocks rose by 0.4%.
  • Metal, IT, FMCG, oil & gas, PSU and private banks, and realty sectors declined by between 0.5% and 1%.

Key Gainers:

  • M&M
  • Bharat Electronics
  • Maruti Suzuki
  • Bharti Airtel
  • Titan Company

Key Laggards:

  • Asian Paints
  • Grasim Industries
  • Adani Enterprises
  • Hero MotoCorp
  • UltraTech Cement

Weekly Performance Review

Despite the Friday correction, the week's performance remained positive.

  • Sensex and Nifty both gained around 1%.
  • Midcap and smallcap indices outperformed, increasing around 2%.
  • The rally was fueled by optimism around GST rationalisation and anticipated US Federal Reserve interest rate cuts.

Investor Sentiment and Currency Movements

  • Foreign institutional investors (FIIs) continued selling, offloading over Rs 25,700 crore in August.
  • The Indian rupee experienced a slight weakening after initial gains, affected by global currency trends and FII selling.

Market Influencers

  • US-India trade tariff deadline approaching
  • Resilient economic indicators in India, including record PMI levels
  • Global cues from US GDP data and crude oil prices

Market Outlook

Market experts predict a range-bound trend in the upcoming period.

  • Focus will be on domestic growth figures, policy developments, and the global liquidity outlook.

Conclusion

Indian markets showed careful movement after having robust weekly gains. It is balancing the strong domestic consumption predictions and external uncertainties. These uncertainties are around trade policies and global monetary conditions.