Research Report : Indian Financial Markets Outlook - 20th August 2025

Ravi Bhatt

Sebi Registered Research Analyst - INH000012591
Website - www.capsavaj.com

Doubts emerge over AI driven tech rally worldwide, markets slip

US technology stocks slipped on Tuesday, dragging key US indexes lower as investors ditched longtime market leaders amid concern the rally has gone too far, too fast. The Nasdaq 100 ended the day down 1.4%, while the S&P 500 closed 0.6% lower for its biggest drop in about two weeks Asian equities fell at the open, mirroring Wall Street’s retreat after a sharp selloff in heavyweight technology shares.

Asian stocks too opened lower in Japan, Australia and South Korea while MSCI’s Asia Pacific Index fell 0.3%. The GIFT Nifty is trading flat at 25,010 as of 6:15 a.m., suggesting a muted open for the benchmark Nifty 50. US And Eurpean index futures were down in early Asian trading hours. S&P 500 futures down 0.1% Euro Stoxx 50 futures down 0.6%.

Fundamental Update

• Bajaj Auto - The company’s arm Bajaj Auto Credit has issued and allotted a Rs 500 crore Commercial Paper with a 6.25% discount rate. Positive

• SRF - The company signed agreements with Chemours to support market needs for essential applications by 2026. Positive

• Endurance Technologies - The company approved capacity addition for ABS, disc brake systems and brake discs. Positive

• Vedanta - The Company’s arm Bharat Aluminium Company has received a penalty order from the Income Tax Department for Rs 80.96 lakhs for assessment year 2012-13, which the company plans to appeal. Neutral

Technical Update

• NIFTY – Nifty maintained upward journey closing near 25K at 24,980 on Tuesday. Index sentiments remained positive over likely fiscal boost by government and support remained at 50 day EMA of 24,820 while 25,100 is near term resistance. Today’s range 24,850 – 25,100.

• BANKNIFTY – Bank nifty too remained elevated during yesterday’s session and settled at 55,865 on Tuesday. Index has support at 17 day EMA at 55,700 while 56K is near term resistance. Today’s range – 55,700 – 56,000.

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