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India Braces for 25% US Tariffs as Stocks Decline
23 Aug
Summary
- Equities end lower after 6-day gaining streak
- Concerns over new 25% US tariffs on Indian exports
- Banking and financial stocks drag large-cap recovery
On August 23, 2025, Indian equities ended lower, snapping a six-day gaining streak, as investors booked profits amid concerns over additional 25% US tariffs on Indian exports taking effect next week. The Nifty fell 0.85% to close at 24,870.1, while the Sensex declined 0.85% to end at 81,306.85.
The market's direction was not influenced by the Centre's proposed indirect tax streamlining, which had boosted the gauges earlier in the week, as there were no fresh positive cues. Banking and financial stocks have dragged the large-cap recovery, weighed down by persistent foreign fund selling and amid expectations of further rate cuts next year, as lower GST rates cause consumer inflation gauge to head south.
The new US tariffs, which will be implemented from August 27, 2025, are on top of the existing 25% tariffs, taking the total levy to 50% - among the highest on any country. Foreign portfolio investors net sold shares worth ₹1,623 crore, while domestic institutions were sellers to the tune of ₹329 crore. Analysts believe the markets have limited upside in the near term, weighed down by weak Q1 earnings, a lack of revival signals for Q2, ongoing tariff concerns, and stretched valuations.
