The six-day rally in the Indian stock market came to a halt in Friday’s session as investors booked profits at higher levels, while attention shifted to Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium, which is expected to provide clarity on a possible September rate cut amid recent signs of job market weakness.
The Nifty 50 closed the session with a sharp drop of 0.85%, settling below the 25K mark at 24,870, while the S&P BSE Sensex also shed 0.85% to close at 81,306. However, the broader markets outperformed the benchmarks, with the Nifty Midcap 100 and Nifty Smallcap 100 slipping just 0.12% and 0.27%, respectively.
Meanwhile, investor sentiment was hit after White House Trade Adviser Peter Navarro made fresh allegations against India on Thursday. He claimed that India was “perpetuating” the Ukraine war by purchasing discounted Russian crude oil. Calling India a “laundromat for the Kremlin,” Navarro alleged that these crude purchases were helping Russia fund its war efforts, even as New Delhi profited from refining and resale.
In addition, the additional 25% tariffs announced by Donald Trump will take effect from August 27, with no signs of peace talks between Russia and Ukraine.
The odds of a Federal Reserve rate cut in September 2025 have dropped from nearly 100% two weeks ago to about 73%. This shift reflects mixed economic signals, including a weak July jobs report, rising core inflation (3.1%), and hawkish comments from Fed Chair Jerome Powell.
Stronger-than-expected producer prices and uncertainty about upcoming data have further fueled doubts about an imminent cut, with some now expecting delays until October or later.
Godfrey Phillips, LT Foods, India Cements among top losers
After a brief recovery in recent sessions, Godfrey Phillips India shares resumed their losing streak, slipping 5.30% to ₹10,549 and emerging as the top laggard among Nifty 500 stocks. LT Foods shares also extended their decline, sliding another 3.21% to hit a two-month low of ₹435.
Cement counters such as India Cements, JK Cement, and The Ramco Cements fell around 4% each. Profit booking also continued in Hyundai Motor India and Ola Electric Mobility, with the stocks ending lower by 3.4% and 3.2%, respectively.
Likewise, Samvardhana Motherson shares dropped 3% to ₹95, marking their third consecutive session of losses. ICICI Lombard General Insurance posted its second-worst intraday drop in August, crashing 3% to ₹1,911.
Other notable losers included Bharat Forge, eClerx Services, Lloyds Metals & Energy, RHI Magnesita India, IDBI Bank, Kansai Nerolac Paints, Lodha Developers, Kirloskar Brothers, LIC Housing Finance, Aptus Value Housing, and Reliance Power, all of which slipped over 2.5%. Overall, 45 stocks from the Nifty 500 pack ended the day lower, with losses ranging between 2% and 5.3%.
