Nifty 50 Today: IT Sector Leads the Rally, Banks Cap Gains

Nifty 50 opened cautiously on 26 August 2025 after the IT sector gains lifted the index yesterday. FIIs remain net sellers while DIIs continue to support markets. Global cues, U.S. tariffs, and commodity trends shape today’s outlook.

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Nifty 50 Recap – 25th August 2025

The Indian equity markets ended Monday’s session on a positive note, with the Nifty 50 closing at 24,967.75, up 97.65 points (+0.39%).

The rally was largely powered by strong IT sector gains (+3.00%), which gave a significant push to the index, while Reliance (+0.24%) added mild positive momentum. On the flip side, banking heavyweights such as HDFC Bank (-0.03%) and ICICI Bank (-0.22%) dragged, limiting further upside. Bharti Airtel also slipped slightly by 0.13%.

This highlights an interesting trend: IT stocks offered resilience, while banking names capped gains, reflecting investor caution in financials.

Institutional Flows – FIIs vs DIIs

On the flows front, Foreign Institutional Investors (FIIs) extended their selling streak with net outflows worth ₹2,466.24 crore, marking six consecutive weeks of withdrawals.

In contrast, Domestic Institutional Investors (DIIs) came in as strong buyers, pumping in ₹3,176.69 crore, thereby cushioning the market from deeper corrections.

Summary Table:

Investor Type	Gross Buy (₹ Cr)	Gross Sales (₹ Cr)	Net (₹ Cr)
FIIs	9,951.36	12,417.60	–2,466.24
DIIs	13,371.09	10,194.40	+3,176.69

This tug-of-war between FIIs’ selling and DIIs’ buying continues to set the tone for market direction.

Global Market Cues – 25th August 2025

The U.S. markets ended on a weak note yesterday:

Dow Jones: 45,282.47 ▼ -0.77%
S&P 500: 6,439.32 ▼ -0.43%
Nasdaq: 21,449.29 ▼ -0.22%
Russell 2000: 2,339.17 ▼ -0.96%
VIX (Volatility Index): 14.79 ▲ +4.01%

Futures trading early this morning also hinted at cautious sentiment, with Dow, S&P 500, and Nasdaq futures all in mild red.

U.S. Tariff Shock – 25% Additional Tariffs Effective from 28th August 2025

The U.S. government has announced an additional 25% tariff on a wide range of imported goods, set to take effect from 28th August 2025.

Impact on Market Sentiment:

This move is expected to add fresh uncertainty to global trade flows, further fueling risk-off sentiment in equity markets.
Investors may turn more defensive, boosting safe-haven demand for gold and bonds, while equities—particularly in emerging markets—may feel the heat.

Impact on Indian Sectors:

Textiles: Indian textile exporters, who rely heavily on U.S. markets, could face margin pressures as higher tariffs make exports less competitive. Stocks in apparel, yarn, and fabric manufacturers may see selling pressure.
Gems & Jewelry: The U.S. is India’s largest market for polished diamonds and jewelry. Higher tariffs will likely dent export demand, impacting companies in the diamond cutting, polishing, and jewelry segments.
Overall: Export-driven sectors may see short-term corrections as global buyers adjust to higher import costs.

Commodities & Energy Market Update – Morning of 26th August 2025

Gold: $3,425.82 (+0.24%) – signaling risk aversion.
Silver: $38.715 (+0.03%) – steady industrial demand.
Copper: $4.5445 (+0.27%) – optimism in industrial activity.
Crude Oil WTI: $64.51 (-0.45%), Brent Oil: $67.94 (-0.41%) – under pressure from weak demand.
Natural Gas: $2.807 (-0.50%) – seasonal weakness.

The rise in precious metals alongside falling oil reflects a risk-off tone globally, often translating into cautious equity moves.

GIFT Nifty Today – 26th August 2025

As of this morning, GIFT Nifty is trading around 75 points lower, signaling a soft start for Indian equities.

With global equities struggling, new U.S. tariffs kicking in, and crude oil prices declining, market participants may remain defensive. However, lower energy costs could benefit India as a net oil importer, lending some cushion to the Nifty 50.

What to Watch Today

IT vs Banks: The IT sector's strength provided resilience yesterday. If banking stocks continue to drag, expect a capped upside.
FIIs vs DIIs: Persistent FII selling may weigh, but strong DII support remains the silver lining.
U.S. Tariffs: Fresh 25% tariffs could weigh heavily on export-driven sectors like textiles and jewelry.
Global cues: Weak U.S. markets and rising VIX indicate caution; expect Nifty to mirror global nervousness.
Energy prices: Lower crude may help India, but won’t fully offset the tariff-led export headwinds.

Market Outlook – 26th August 2025

Nifty 50 is expected to open lower and trade cautiously today. The momentum from the IT sector may not be enough to offset global jitters, especially as FIIs continue their selling streak.

The new U.S. tariff announcement adds another layer of uncertainty, particularly for export-heavy Indian sectors like textiles and gems & jewelry. Traders should keep a close eye on these segments, as well as global equity movements.

Author’s Note:
Markets are treading a fine line between domestic resilience and global turbulence. While DIIs continue to support Indian equities, global trade tensions and FII outflows remain a drag. For investors, this is a time to stay nimble—favoring defensive and quality domestic plays over export-reliant names until clarity emerges on the U.S. tariff impact.

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