Weekly Market Update
Weekly Market Update

Weekly Market Update: 7 Alarming Trends from India’s Dramatic Market Fall

Introduction

The Weekly Market Update from August 29, 2025, paints a picture of turbulence across Indian equities as trade concerns and global economic jitters dominated sentiment. The Nifty 50 closed the week at 24,426, posting a sharp weekly decline of 1.78%. A mix of external shocks, including the U.S. imposing 50% tariffs on Indian exports, a weakening rupee, and heavy FII outflows, pushed markets into the red. Although Friday saw a minor pullback, the overall tone remained cautious.

Foreign portfolio investors pulled out nearly ₹8,982 crore, while domestic institutional investors stepped in with ₹10,236 crore worth of support. However, the relief from DIIs was not enough to counter the growing unease over higher oil import bills, a widening trade deficit, and mounting concerns over corporate earnings.

This Weekly Market Update provides a closer look at sectoral trends, top gainers and losers, and key developments shaping investor sentiment.

Indian Weekly Market Update

The Indian markets reflected global volatility with selling pressure across indices.

IndexWeekly Change% Change
Nifty 50-442 pts-1.78%
Sensex-1,237 pts-1.84%
Bank Nifty-1,234 pts-2.71%
Nifty IT-113 pts-0.73%
Small Cap 250-457 pts-2.93%

The Nifty Midcap 150 and Nifty Smallcap 250 were hit particularly hard, slipping 3.21% and 3.19%, respectively. This reflects broad-based weakness beyond the frontline indices.

Rupee weakness against the U.S. dollar and heightened capital outflows intensified pressure on small and midcap names, where liquidity tends to dry up faster during volatile phases.

Sectoral Performance- Weekly Market Update

The Weekly Market Update also highlights how sectoral indices fared amid global trade tensions and domestic headwinds.

Top Performing Sectors

Interestingly, only two sectors managed to close in the green this week, showing resilience amid the broader sell-off.

SectorWeekly Change %
Forest Materials+1.18%
Hardware Technology & Equipment+0.19%

The rally in Forest Materials was supported by demand for sustainable products, while Hardware Technology saw selective buying interest in export-oriented companies.

Worst-Performing Sectors

On the downside, multiple sectors bore the brunt of risk-off sentiment.

SectorWeekly Change %
Fertilizers-5.15%
Telecommunications Equipment-4.45%
Transportation-4.42%
Diversified-4.41%
Commercial Services & Supplies-4.35%

High crude prices, narrowing gas discounts, and slowing demand contributed to the sharp fall in fertilizers and energy-related sectors. Banking and financials were also under pressure due to fears of slower credit growth amid a cautious stance from the RBI.

Top Gainer Stocks of the Week

Despite a broadly weak market, a few stocks stood out as strong outperformers.

StockWeekly Change %LTPKey Driver
Rattan Enterprises+16.52%₹61.36Strong volume surge
Ola Electric+14.54%₹54.05EV sector optimism
Authum Investment+8.37%₹3,232.9Stake sale at record high
eClerx Services+8.31%₹4,221.3Insider buying activity
Granules+7.36%₹492.25High gain, high volume

These stocks benefited from sector-specific triggers, such as EV adoption (Ola Electric) and healthcare demand (Granules), alongside technical buying momentum.

Top Loser Stocks of the Week

On the flip side, several big names posted sharp losses.

StockWeekly Change %LTPReason
Sundaram Finance-14.70%₹4,493.7Weak quarterly outlook
Angel One-12.26%₹2,209.8Brokerage sector slowdown
Sai Life Science-10.93%₹824.7Weak revenue guidance
Reliance Power-10.20%₹43.92Rising debt concerns
BSE-10.14%₹2,096.2Profit booking after rally

Broking firms like Angel One suffered on falling trading volumes, while financials like Sundaram Finance took a hit from higher borrowing costs and margin pressures.

Global Market Update

Global equities also saw weakness during the week, reflecting investor anxiety over trade frictions and monetary policy signals.

IndexLastChange% Change
Dow 3045,544.90-92.02-0.20%
S&P 5006,460.26-41.60-0.64%
Nasdaq Composite21,455.60-249.61-1.15%
FTSE 1009,187.34-29.48-0.32%
CAC 407,703.90-58.70-0.76%
DAX23,902.20-137.71-0.57%
Nikkei 22542,718.50-110.32-0.26%
Hang Seng25,077.60+78.80+0.32%
Shanghai Composite3,857.93+14.33+0.37%

While U.S. indices extended their losses, Asian markets like Hang Seng and Shanghai Composite showed resilience, supported by domestic policy support in China.

Check live Global market update here.

What’s Next? Key Data to Watch

Looking ahead, the upcoming week will see crucial economic indicators that could guide market direction.

DateReportForecastPrior
Sep 1HSBC Manufacturing PMI (Final)59.159.7
Sep 3HSBC Composite PMI (Final)61.165.2
Sep 3HSBC Services PMI (Final)60.564.8
Sep 3M3 Money Supply (YoY)9.6%9.6%
Sep 5Forex Reserves$690.72B

These numbers will be closely tracked for signs of resilience in India’s manufacturing and services sector. A strong PMI could help cushion sentiment, while forex reserves data will be key in assessing rupee stability.

Conclusion- Weekly Market Update

The Weekly Market Update shows that Indian equities faced a tough week, weighed down by tariffs, rupee weakness, and FII outflows. Sectors such as fertilizers, banking, and oil & gas took the heaviest hit, while a few pockets like forest materials and hardware technology showed resilience.

Globally, concerns over trade tensions and growth uncertainties added to the nervousness, keeping investors on edge. As the market prepares for fresh economic data, traders will be watching whether domestic resilience can offset global volatility.

For now, the outlook remains cautiously neutral, with opportunities emerging only in selective stocks and resilient sectors.

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