There will be no trading at the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Wednesday on the account of Ganesh Chaturthi festival.

Trading in derivatives, equities, Securities Lending and Borrowing (SLB), currency derivatives and interest rate derivatives will remain shut for the day.

The commodity derivatives segment will be closed in the morning from 9 am to 5 pm and will open for the evening session from 5 pm to 11.55 pm. Trading on the NSE and BSE will restart on August 28 (Thursday).

The domestic equity indices ended the session with a sharp decline on Tuesday amid worries over the US imposition of 50 per cent tariffs on Indian goods, scheduled to come into effect from Wednesday.

Sensex ended the session at 80,786.54, down 849.37 points or 1.04 per cent. The 30-share index opened in negative territory at 81,377.39 against the last session's closing of 81,635.91. The Index escalated the loss further during the intraday trade amid overall selling, and it touched an intraday low at 80,685.98.

Nifty settled at 24,712.05, down 255.70 points or 1.02 per cent.

Domestic demand in India is set for a strong revival, with the Nifty expected to touch 27,609 in the next 12 months, a new report said on Tuesday.

The data compiled by PL Capital in its latest India strategy report said multiple factors, including benign inflation, government tax cuts, normal monsoons, and recent rate reductions by the Reserve Bank of India, are creating conditions for broad-based consumption growth.

The report titled “Ready for next leg of growth” highlighted that consumer price inflation has eased to 1.6 per cent, helped by food deflation, while rural incomes are getting a boost from normal rains.

A Rs 1,000 billion tax cut announced for FY26 is also expected to support demand. The report further added that the RBI’s 100 basis points rate cut will lower EMIs, encouraging demand for housing, cars, and personal loans.

Market activity in August remained strong, with 13 mainboard initial public offerings (IPO) raising Rs 15,200 crore and 28 SME IPOs raising Rs 1,345 crore -- the highest SME fundraise since September 2024.

However, most of the listing gains have been modest, indicating a cautious sentiment. Even as interest in new issuances remains, investor expectations are tempered due to global challenges and a slowdown in the domestic market, according to market experts.

Indian IPOs raised Rs 16,124 crore in July and Rs 17,688 crore in June. The highest fundraising from the SME space came from 28 companies that tapped the market. The level of funding is, however, down from Rs 1,205 crore in July and Rs 1,300 crore in June.

The US administration has decided to raise tariffs on Indian imports, with an additional 25 per cent duty for purchasing Russian oil, which is set to take effect from August 27.

This decision will push the overall tariffs to 50 per cent on Indian goods entering the US.

The Department of Homeland Security (DHS) confirmed that the new measures will take effect from “12:01 am Eastern Daylight Time on 27 August as per their latest draft notice”.

According to the draft notice issued by the DHS, the duties target India under the policy of countering “threats to the United States by the government of Russian Federation”.

“The duties set out in the Annex to this document are effective with respect to products of India that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am Eastern Daylight Time on August 27, 2025,” it stated.

The Indian benchmark indices began the trading in red on Tuesday, after a draft notice published by the Department of Homeland Security (DHS) revealed that US President Donald Trump plans to go ahead with 50 per cent tariffs on Indian goods from Wednesday.

The Nifty 50 fell 167.90 points, or 0.67 per cent, at 24,799, while the Sensex declined 546 points, or 0.67 per cent at 81,089.

Trump had earlier said the US would raise tariffs on Indian goods to 50 per cent from 25 per cent, citing the country's purchases of Russian crude oil.

Among sectoral indices, the Nifty Metal index slipped 1.04 per cent. The Nifty Pharma index declined 1.57 per cent, the Nifty PSU Bank index was down 0.84 per cent and the Nifty Private Bank index fell 0.96 per cent.

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday said that the central bank’s focus on price stability has played a key role in strengthening India’s macroeconomic fundamentals.

Speaking at ‘FIBAC 2025’, organised jointly by FICCI and IBA, he added that while price stability remains the primary objective of monetary policy, growth has never been lost sight of.

“We will continue to conduct monetary policy with the primary objective of price stability, keeping in view the objective of growth,” Malhotra said, describing financial and price stability as essential for sustainable economic expansion.

India’s real investments grew at an average of 6.9 per cent annually between fiscals 2021 and 2025, outpacing the country’s gross domestic product (GDP) growth of 5.4 per cent in the same period, a new report said on Monday.

The report by Crisil, titled ‘The Road Ahead for Investments’, said India’s investment rate in fiscal 2025 was higher than the decadal average, supported mainly by government and household spending.

“India’s real investments grew 6.9 per cent per year (average real growth) over fiscals 2021-25, faster than the 5.4 per cent gross domestic product (GDP) growth,” the report said.

Investments, measured as gross fixed capital formation, stood stronger both in nominal and real terms compared to the average between fiscals 2016 and 2025.

The Indian equity indices settled in the positive territory on Monday amid expectations around a rate cut by the US Federal Reserve next month.

Buying in IT heavyweights remained the key reason behind the rally.

Sensex ended the session at 81,635.91, up 329.06 or 0.40 per cent. After a sharp decline in the last session, the 30-share index opened with a decent gap-up at 81,501.06 against the previous session's closing of 81,306.85. The index further escalated the momentum to touch an intraday high at 81,799.06 but remained range-bound.

Nifty closed 24,967.75, up 97.65 points or 0.39 per cent.

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday expressed optimism about the ongoing India-US trade negotiations reaching a positive conclusion.

"We are hopeful that negotiations on tariffs will play out and there will be minimal impact," the central bank's governor said during an event here.

Malhotra's comments come as the sixth round of India-US Bilateral Trade Agreement (BTA) negotiations, originally set for August 25, has been postponed.

The Governor also said that India's robust foreign exchange reserves are sufficient to cover 11 months of imports and provide a strong buffer against external shocks.