Stock Market Today – 22 August 2025: Rally Interrupted as Sensex Drops 500 Points, Nifty Below 25,000
After a strong six-session rally, the Indian stock market saw a sharp reversal on Friday, 22 August 2025, with key indices tumbling amid cautious global sentiment. The BSE Sensex dropped over 500 points, while the Nifty 50 slipped below the crucial 25,000 mark, signaling broad-based investor caution ahead of a critical economic event in the U.S.
By mid-morning, the Sensex was down 501 points, trading at 81,499, while the Nifty 50 fell by 156 points to 24,927. The slide follows overnight weakness in Wall Street and mixed cues from Asian markets, as global investors await U.S. Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium.
Market Breadth and Performance
The decline was widespread, with over 1,600 stocks trading in the red on NSE out of 2,577 actively traded. Only 883 stocks were in the green, while 81 remained unchanged. Among the top Nifty losers were SBI Life, Adani Enterprises, Adani Ports, and Hero MotoCorp.
Both the Sensex and Nifty had opened weak, with the Sensex starting 49 points lower at 81,951 and the Nifty down 19 points at 25,064. The initial losses deepened quickly as the session progressed.
What’s Driving the Drop?
Several key factors contributed to the market downturn:
- Mixed Asian market trends, with Japan’s Nikkei dipping slightly while South Korea’s Kospi and Kosdaq surged.
- Uncertainty ahead of Powell’s address, with fears of a potentially hawkish tone that may signal prolonged higher interest rates.
- Weakness in U.S. indices overnight:
- Dow Jones fell by 152 points
- S&P 500 dropped 25 points
- Nasdaq slipped 72 points
Global Economic Snapshot
Despite weak equity markets, U.S. business activity in August rose, led by manufacturing. The S&P Global Composite PMI hit 55.4, its highest since December. However, unemployment claims also saw their biggest weekly jump in three months, adding to market nerves.
Meanwhile, existing home sales in the U.S. rose 0.8% YoY in July — another sign of underlying economic strength.
Commodities and Currency Watch
- Gold prices remained stable at $3,337.12/oz ahead of Powell’s speech.
- The U.S. dollar held firm, showing signs of ending the week stronger.
- Crude oil prices edged lower:
- Brent at $67.50 (-0.25%)
- WTI at $63.37 (-0.24%)
Looking Ahead
Today’s sharp pullback reflects investor wariness amid a global macroeconomic environment full of mixed signals. With Jackson Hole taking center stage, the Fed’s tone on interest rates will be a major determinant for near-term market direction.
Analysts suggest that while the correction may be temporary, volatility could remain high until clearer guidance emerges from global central banks.
