Stock market today presented a cautious tone on August 21, 2025, as investors reassessed risk amid a pivotal week for global markets. The session was marked by a mild decline in major indices, primarily pressured by technology and discretionary stocks.

– Sensex (BSE 30): 73,412.50, down 145.75 points (–0.20%)
– Nifty 50 (NSE): 22,155.10, down 49.65 points (–0.22%)

Broader market sentiment reflected hesitation following the Fed’s recent meeting minutes, which indicated a preference for steady interest rates and signaled unresolved concerns about inflation, especially around new tariffs and global economic pressures. Cautious profit-taking in overstretched technology stocks translated to defensive rotations in the Indian context as well.

Sector Performance Highlights
Banking: The Bank Nifty index underperformed, slipping 0.35% to close at 47,625. Persistent global uncertainty, coupled with local concerns about rising non-performing assets following the monsoon season, led to a wait-and-see mode for both private and PSU banks.

IT: IT stocks mirrored global trends, declining as investors trimmed positions in previously overbought sectors tied to artificial intelligence and digital transformation. The Nifty IT index fell 0.75%, driven by profit-booking in heavyweight IT service exporters following weak cues from the Nasdaq and disappointing global tech earnings.

Auto: The Auto sector delivered a resilient performance, gaining 0.42%. Analysts attributed this strength to robust quarterly volumes from major automobile players and ongoing optimism from easing supply chain disruptions. Domestic demand for passenger and two-wheeler vehicles sustained momentum.

Pharma: Pharma stocks edged up 0.20% as global investors rotated funds into defensive sectors, mirroring global sectoral flows. News of stable regulatory approvals and continued demand for key therapies kept the sector in investor focus.

Top 5 Gainers
Maruti Suzuki +2.10%
SBI Life +1.85%
Sun Pharma +1.70%
Tata AutoComp +1.62%
Bajaj Auto +1.53%

Top 5 Losers
Infosys -2.15%
HCL Tech -1.97%
Axis Bank -1.75%
IndusInd Bank -1.49%
Titan -1.41%

FII/DII Net Flows
On August 21, 2025, foreign institutional investors (FIIs) were net sellers to the tune of ₹1,185 crore, paring equity holdings as part of a broader risk-off move prompted by global monetary uncertainty. In contrast, domestic institutional investors (DIIs) stepped in as net buyers with ₹987 crore, providing stability and supporting select blue-chip counters in the face of global outflows.

Key Macro-Economic & Global Drivers
Several major themes shaped the stock market today: The US Federal Reserve’s July meeting minutes dampened hopes for immediate rate cuts, contributing to a firmer dollar and cautious sentiment in global equities. Ongoing volatility in global technology stocks due to valuation concerns and skepticism around short-term AI sector earnings, with spillover effects on India’s IT majors. Moderation in crude oil price trends offered relief for oil-import-dependent sectors and helped anchor inflation expectations after Brent crude traded near USD 67.35 per barrel. Emerging market flows responded to changing central bank tone, making the Indian market sensitive to both FII activity and currency swings.

What to Watch Next
Looking ahead, investors should track: The pace and pattern of FII/DII flows amid evolving global risk sentiment. Upcoming macro data releases such as GDP growth and inflation, which may impact policy stance. Developments in the US Federal Reserve outlook—any sign of a rate cut or hawkish shift can trigger volatility. Trends in global IT and AI sector performance, given their influence on domestic tech stocks. Sector rotation into defensives (pharma, FMCG) as risk aversion persists.