Indian Markets Close for Holiday Amid US Tariff Fallout

Indian financial markets shuttered for a local holiday on Wednesday, August 27, following a brutal trading session that saw equities, currencies, and bonds tumble. The BSE Sensex plunged 1.04% to 80,786.54 while the Nifty 50 dropped 1.02% to 24,712.05—their steepest single-day declines in three months. The selloff came after Washington confirmed 25% tariffs on Indian goods effective immediately.

The rupee extended its slide for a fifth consecutive day, depreciating 0.1% to 87.68 against the dollar as traders priced in the tariff impact. Sovereign bonds also felt pressure, with the 10-year yield rising to 6.5997% after disappointing state debt auctions.

Market participants now brace for Thursday's reopening, with analysts warning of continued volatility across asset classes. The tariff escalation threatens to disrupt India's export economy just as global risk appetite wanes—a combination that could spill over into cryptocurrency markets as investors seek alternative hedges.