Nifty 50 slumps on US tariff impact, monthly F&O expiry pressure

The benchmark indexes ended lower on Thursday as fresh US tariffs on Indian goods weighed on sentiment, dragging financials and information technology stocks, while select consumption names gained on expectations of a goods and services tax (GST) cut.

The NSE Nifty 50 settled 0.9% lower at 24,501.10, while the S&P BSE Sensex dropped 706 points, or 0.9%, to 80,081.

Thirty-six of the 50 Nifty stocks ended in the red, with financials and IT the biggest drags. The Nifty Bank fell 1.2% to 53,820, while the Nifty IT index lost around 1.5%. The broader Nifty Midcap 100 slipped 1.3% to 56,048.

The additional 25% tariff levy announced by the Donald Trump administration in the US on Indian exports, took effect on Wednesday, August 27. With this, the total levy on Indian exports to the US stands at 50%.

Consumption-linked stocks, however, drew buying interest on hopes of a GST reduction. Auto and FMCG names bucked the weak trend, helping limit losses.

Shares of companies exiting the derivatives segment, including Aditya Birla Fashion, Adani Total Gas, CESC and IRB Infrastructure, slumped sharply on heavy selling.

InterGlobe Aviation, operator of IndiGo, fell 5% after co-founder Rakesh Gangwal sold a 2.2% stake through block deals. Reliance Industries pared early losses and closed in positive territory, finishing 2% higher from the day’s lows ahead of its annual general meeting.

Capital market-linked stocks remained under pressure, with Multi Commodity Exchange and 360 One WAM sliding 4–5%. Meanwhile, Ola Electric extended its recent rally, rising 16% over the last three sessions.

Market breadth was weak, with the advance-to-decline ratio at 1:2, signalling broad-based selling.