Why the Market’s Late August Fall Was No Surprise ‘Gujju Traders’ Prediction Decoded The last week of August 2025 proved to be a turbulent one for Indian equities. While global cues added to the volatility, Gujju Traders had already flagged the possibility of a sustained decline. The prediction was rooted in clear economic and political signals that many ignored but seasoned investors could not afford to miss. Let’s decode the reasons in detail. 1. Government’s Failure in Negotiations with Trump on Tariffs One of the most critical triggers was the government’s inability to negotiate effectively with U.S. President Donald Trump on the proposed tariff hikes targeting Indian exports. 2. GST Cut – A Misinterpreted Signal The announcement of a GST cut should have been a celebratory moment for businesses and consumers. However, sharp investors saw it differently. 👉 Investor Psychology: Markets don’t just react to numbers; they react to confidence. The GST cut, instead of being read as a bold reform, was interpreted as a defensive compromise. 3. FIIs Read Between the Lines Foreign Institutional Investors (FIIs), often the quickest to respond to global developments, were swift in their reaction: 4. Domestic Investors Followed the Sentiment Retail and domestic institutional investors (DIIs) initially supported the market with steady buying. But as the news cycle kept focusing on “Failed Negotiations” and “hidden signals of GST cuts,” even domestic participants started booking profits. This psychological chain reaction amplified the sell-off. 5. Technical Breakdown Confirmed the Fall Markets also confirmed weakness on the technical side: Gujju Traders’ Prediction Came True Weeks before the fall, Gujju Traders highlighted these clues: Conclusion – Lessons for Investors The constant market fall in the last week of August wasn’t a random event. It was a result of failed negotiations, policy misinterpretation, and investor psychology. For smart investors, this was not a surprise. The writing was on the wall, and Gujju Traders had already cautioned about the possible downside. 👉 Investor Takeaway: Markets are not just about numbers they are about reading signals, policy tones, and hidden messages. Those who paid attention to the GST cut clue understood that the government was signaling weakness, not strength. 📌 At Gujju Traders, our philosophy remains clear: Decode the signals before the crowd does.