Tariff worries worsen, Indian equity markets under pressure

Indian Developments

On August 14, 2025 equity markets ended the 6-week losing streak, closing flat but with positive bias. The Nifty 50, Nifty Midcap 150 and Nifty Small Cap 250 ended on positive note, increasing by 1.10%, 0.81% and 0.69% respectively since Friday August 8. USD-INR traded in a narrow range in the past week. Foreign Institutional Investors (FIIs) continuing to be net sellers, while Domestic Institutional Investors (DIIs) maintained their position as net buyers.

Ratings agency S&P Global has upgraded India's sovereign rating to BBB from its earlier rating of BBB- on August 14, 2025, which reflects their view that continued policy stability and high infrastructure investment will support India's long-term growth prospects.

Sectoral Developments

During the week ending August 14, 2025, IT (1.26%) and pharma stocks (3.5%) advanced on the back of a softer US inflation data and dovish outlook.

On the downside, laggards based on weekly performance were Consumer Durables (-0.59%) and FMCG (-0.45%).

Global Developments

Global equity markets largely performed well over the past week, despite ongoing uncertainty surrounding the US tariff situation.

U.S. stock indices—Dow Jones Industrial Average, S&P 500 — increased by 1.65%, and 1.92% respectively

In Europe, the FTSE 100 and Germany’s DAX remained relatively flat at 0.65% and 0.32% increase respectively

Among the Asian indices, Japan’s Nikkei index experienced a major increase of 4.55%, Hong Kong’s Hang Seng and Shanghai Composite grew by 1.75% and 1.43% respectively while South Korea’s KOSPI ended the week flat at -0.06%.

Other Markets:

• Brent Crude oil prices closed at $65.5 per barrel.
• The rupee remained under pressure hovering around 87.56 against the US dollar
• The 10 Year Benchmark G-Sec yield closed at 6.4% this week.
• Gold prices closed at Rs 99,569 per 10 grams.

Source: www.nseindices.com; MCX Gold Prices; Economic times, Bloomberg. Values as available at 4:30 pm

Data for week ended on August 14th , 2025.

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