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Below the Quote on Market Commentary 26th August 2025 by Siddhartha Khemka - Head Of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities extended losses on Tuesday, weighed down by escalating global trade concerns ahead of the implementation of fresh US tariffs on Indian goods. US President had notified an additional 25% duty, taking the total levy to 50%, which comes into effect from August 27. The Nifty100 fell 1%, while the Nifty Midcap100 and Smallcap100 underperformed, declining 1.6% and 2%, respectively. Sectorally, FMCG was the lone gainer (+0.9%) on expectations of meaningful GST rate reforms, while all other indices ended in the red.

FMCG stocks also found support as the government readied the second major fiscal stimulus of FY26 after personal income tax cuts, with the GST Council expected to discuss shifting food and textiles into the 5% slab, along with rate cuts for cement and insurance. Globally, sentiment was further hit after the US President moved to fire Fed Governor Lisa Cook on allegations of falsifying mortgage documents, while also threatening export curbs on chips in retaliation against digital services taxes.

Indian markets will remain closed tomorrow on account of Ganesh Chaturthi. Investors will keep a close watch on any deferral of the secondary tariffs on Indian goods, as that could meaningfully lift near-term market sentiment.

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