Indian markets opened with strength on August 12, 2025. Sensex climbed roughly 394 points to a high of 80,997, and Nifty rose about 118 points to touch 24,702.6. But by late morning, the mood swung sharply—Sensex gave up those gains, trading around 80,512 (a drop of ~485 points), while Nifty fell below the key 24,600 level Moneycontrol.
Here’s a breakdown of what might have triggered the sudden shift:
1. Global Market Unease & Geopolitical Watch
Markets pulled back amid caution around international developments. Investors stayed edgy ahead of the scheduled Trump–Putin meeting in Alaska on August 15. Despite a temporary 90-day trade truce between the U.S. and China—helping sectors like IT—broader optimism remained capped without clarity from the upcoming U.S.–Russia dialogue Moneycontrol.
2. Profit-Booking After Initial Gains
A number of stocks—including Bajaj Finance, Grasim, Eternal, Bharat Electronics, and Hindalco—slid around 2%, pointing to early traders locking in gains. Intraday buying interest faded, overtaken by risk-off sentiment Moneycontrol.
3. Ongoing FII Outflows and Weak Global Sentiment
Foreign investors continued their trend of selling, pulling capital from markets. Add to that are global headwinds—higher interest rates, shaky overseas markets, and volatility across sectors like IT—keeping sentiment fragile The Economic Times+1.
4. Tariff Fears Still a Drag
Even though the day’s themes shifted, the backdrop of U.S. tariff threats hasn’t receded. Earlier this week, Trump doubled tariffs on Indian exports to 50%, gnawing away at confidence across equity markets The Economic Times+1.
5. Broader Market Weakness
This isn’t just a one-off dip. As of early August, both Sensex and Nifty marked their sixth consecutive weekly loss—their longest such stretch since the 2020 COVID crash. The slide has been driven by sustained FII selling, disappointing Q1 earnings, global headwinds, and limited support from sectors like banking The Economic Times+1.
6. Technical Indicators Flash Warning Signs
Technicals are not helping. The market looked set for a reversal once Nifty slipped below 24,600—a critical support zone. Analysts point to bearish charts; unless Nifty rebounds past key resistance levels (around 24,850), further downside remains likely The Economic Times+1.
Putting It All Together
| Factor | Description |
| Geopolitics | Anxiety ahead of Trump–Putin summit capped optimism. |
| Profit-booking | Traders took money off the table after early gains. |
| Foreign Outflows | Ongoing FII selling coupled with global uncertainty weighed heavily. |
| Tariff Pressure | Elevated U.S. tariff risk continues to darken sentiment. |
| Cumulative Weakness | The benchmarks added to a six-week losing streak. |
| Technicals | Breaking 24,600 exposed market to further downside. |
Final Take
The sharp intraday reversal reflects a delicate balancing act. The market tried to rally on early optimism but quickly pivoted as traders locked in profits and broader concerns resurfaced. Without supportive global cues, clarity on US-Russia negotiations, or a technical turnaround, benchmark indices remain vulnerable.
The important level watchers are likely eyeing Nifty’s ability to bounce back above 24,600—or risk sliding toward the next support near 24,400 or even lower.
Let me know if you’d like a briefer version, sector-wise breakdown, or commentary on forecasts going forward.
I am a digital marketing executive as well as content writer in the stock market and crypto related blogs. My goal is to provide simple, interesting and reliable information to readers through my articles so that they always stay updated with the world of stock market and crypto.
