Angel One, Kfin Technologies, and MCX Slide around 4% as Nifty Capital Markets Index Drops 2% on Tariff Worries

Shares of leading capital market firms slumped sharply on Tuesday, mirroring the broader weakness in Indian equities. The downturn pushed the Nifty Capital Markets index down over 2% to around 4,280, marking its second straight session of losses.

Benchmark Indices Under Pressure

The sell-off was part of a wider market decline. The Nifty 50 slipped around 1.00% (255 points) to fall below the crucial 24,800 level, while the Sensex dropped 1.00% (over 800 points) to settle near 80,786.84. At the same time, the India VIX, a measure of market volatility, rose nearly 4% to hover around & ended at 12.19, signalling heightened investor caution.

Global factors added to the pressure. The decline followed news that the Donald Trump-led U.S. administration had issued a draft order to impose an additional 25% tariff on Indian imports, effective August 27. The move raised concerns over the viability of India’s $86.5 billion worth of exports to the U.S.

Experts & veteran analysts said, “The biggest headwind for Indian markets remains whether Nifty can scale the ‘Wall of Worry’ around the 50% Trump tariff set to kick in on August 27, which threatens to make almost all of India’s exports to the U.S. commercially unviable.”

Apart from trade concerns, weak global cues, persistent foreign institutional investor (FII) selling, and a falling rupee added to domestic market woes.

Capital Market Stocks Decline

Capital market-linked stocks bore the brunt of the sell-off. Angel One share price tumbled over 4% to close at ₹2,339.10 per share, while Kfin Technologies and Multi Commodity Exchange of India (MCX) both fell close to 4%.

The Bombay Stock Exchange (BSE) dropped nearly 3%, while CDSL, HDFC AMC, and CAMS slipped around 2% each. Other players, including 360 One Wam Ltd, Indian Energy Exchange (IEX), Motilal Oswal Financial Services, and Nuvama, were down and closed around 1%.

SEBI’s Policy Outlook

The decline in capital market stocks also followed recent remarks from SEBI Chairman Tuhin Kanta Pandey, who indicated that the regulator was considering changes in the tenure of equity derivatives after consultations with stakeholders.

Speaking at FICCI’s 22nd Annual Capital Markets Conference on August 21, Pandey highlighted the need for quality and balance in the F&O segment.

He said, “Equity derivatives play an important role in capital formation, but we must ensure quality and balance. We will consult stakeholders on ways to improve in a calibrated manner the tenor and maturity profile of derivative products, so they better serve hedging and long-term investing.”

Conclusion

The slump in capital market stocks reflects a combination of global trade tensions, weak investor sentiment, and regulatory uncertainty. With the proposed U.S. tariffs set to take effect this week, markets may continue to see volatility in the near term.