Equity Market Update
- In August 2025, equity markets extended their downward trend, pressured by tariff-related worries and weaker-than-expected earnings. A brief rebound was seen after the government announced cuts in GST slabs to support consumption, but overall performance remained negative. The BSE Sensex declined 1.69%, while the Nifty 50 slipped 1.38%. Broader markets underperformed, with the BSE Midcap falling 9.01% and the BSE Smallcap losing 8.16%, reflecting sharper profit-taking in mid- and small-cap segments.
Sectoral performance - Leaders: BSE Auto (+5.78%), Consumer Durables (+1.96%), and FMCG (+0.21%) posted gains, supported by festive demand expectations and resilient consumption.
Laggards: Realty (-4.48%), Power (-4.56%), and Oil & Gas (-4.69%) were the weakest performers, reflecting global commodity volatility and cautious investor sentiment.
Despite short-term volatility, domestic flows remained supportive, with DIIs and SIPs continuing to provide stability. This underscores the resilience of India’s investor base, even as global factors weigh on near-term performance.
Past performance may or may not be sustained in future and is not a guarantee of any future returns, and should not be used as a basis of comparison with other investments. Index performance does not signify scheme performance Investors should consult their financial advisers if in doubt about whether the product is suitable for them.