Sensex, Nifty Break Six-Day Rally; Investors Lose ₹2 Lakh Crore — Key Market Highlights
- 22nd August 2025
- 04:45:00 PM
- 5 min read
Summary
The Indian stock market ended a six-day winning run on August 22 as the Sensex fell 694 points to 81,306 and the Nifty lost 214 points to close at 24,870. Profit-taking, tariff concerns, and cautious global cues drove the decline, erasing over ₹2 lakh crore in investor wealth. Analysts expect near-term volatility but maintain a constructive medium-term outlook.
Mumbai | August 22 – Indian equities snapped a six-session winning streak on Friday, August 22, weighed by profit-taking and weak global cues. The Sensex closed at 81,306.85, down 694 points (0.85%), while the Nifty 50 ended 214 points lower at 24,870.10.
Broader indices also slipped, with the BSE Midcap index losing 0.23% and the Smallcap index down 0.35%. The sell-off wiped out more than ₹2 lakh crore in investor wealth, with total market capitalisation of BSE-listed companies dropping to ₹454 lakh crore.
Despite the day’s fall, both benchmarks still managed to post nearly 1% weekly gains — their second consecutive positive week.
Indian Stock Market Today: 10 Key Highlights
- Why did Sensex and Nifty fall?
The sharp pullback came after six straight sessions of gains, with traders choosing to book profits ahead of a crucial weekend. Concerns over the August 27 US tariff deadline, which could see duties on Indian goods rise sharply, weighed on sentiment. Global caution also prevailed as investors waited for US Fed Chair Jerome Powell’s speech at Jackson Hole, which is expected to provide clarity on interest rate policy.Vikram Kasat, Head of Advisory at PL Capital, said: “Markets were due for a pause after a sharp run-up. The decline was triggered by global anxieties, but the underlying trend is not broken. Long-term investors should view such corrections as an opportunity to accumulate quality stocks.” - Nifty gainers
Only eight out of 50 Nifty stocks managed to stay in positive territory, highlighting the broad-based selling pressure. Mahindra & Mahindra gained 0.74% on sustained optimism around SUV sales, while Maruti Suzuki rose 0.63% as auto demand remains resilient ahead of the festive season. BEL inched up 0.25%, supported by steady interest in defence names despite overall market weakness. - Nifty losers
The market’s slide was led by heavyweights. Grasim Industries fell 2.55% after profit-taking in industrial and cement-linked counters. Asian Paints lost 2.40% as crude price volatility raised margin concerns for paint makers. Adani Enterprises dropped 2.28%, adding pressure on the index amid muted sentiment in infrastructure-linked stocks. - Sectoral trends
Losses were broad-based, with banking and financial services leading the decline. The Nifty Bank index fell 1.09%, while the Financial Services index slipped 0.96%. Selling also extended to FMCG, metals, IT, realty, and oil & gas names, which shed up to 1%. Analysts said the pullback in sectors that had rallied strongly in recent sessions reflects rotational profit-taking rather than structural weakness. - Most active stocks
Trading action was robust, with Vodafone Idea topping the NSE volumes at 166 crore shares as investors tracked developments around the company’s fundraising plans. Ola Electric Mobility, which saw 26.82 crore shares change hands, remained in focus following its volatile debut. Sagility India also featured among the most active, trading 10.6 crore shares as interest in mid-tier counters continued. - Small-cap resilience
Even in a weak session, select small- and mid-cap names stood out. Eleven BSE-listed stocks rallied over 15%, including Chembond Chemicals, Cargosol Logistics, Resourceful Automobile, and Purple Entertainment. Market watchers said this reflects selective appetite for niche plays, though the broader caution in smallcaps continues after their sharp run-up this year. - Market breadth
The overall tone remained weak, with 2,322 stocks declining on the BSE versus 1,757 gainers, while 161 closed unchanged. Analysts pointed out that the negative advance-decline ratio highlights the pressure across sectors, even though benchmarks were cushioned by selective buying in defensives. - Fresh 52-week highs
Despite the weak headline indices, 151 stocks hit fresh 52-week highs, a sign of underlying strength in specific segments. Among the notable names were Apollo Hospitals, buoyed by strong earnings momentum, Cummins India, which has benefited from industrial demand, and HDFC AMC, supported by continued inflows into mutual funds. - Fresh 52-week lows
On the other side, 53 stocks slipped to their lowest level in a year, underscoring divergent market sentiment. Cohance Lifesciences, Bajaj Steel Industries, and Hikal were among those touching new lows as sector-specific concerns and weak earnings outlook weighed on these counters. - Technical view
The Nifty is facing resistance near the 25,000 mark, while support is seen at 24,700. A decisive breach below support could open the door for further downside in the short term. However, Kasat emphasised that the longer-term trajectory remains constructive. “The immediate trend is consolidative, but the market’s medium-term outlook is positive. Stock selection becomes crucial in this phase, and investors should prioritise companies with earnings visibility,” he said.
Investor takeaway
The correction in the Indian stock market today reflects a cooling-off after a strong rally. While global factors and tariff concerns may keep volatility high in the near term, analysts believe investors should focus on quality large-caps and sector leaders to ride through the uncertainty.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
