Benchmark equity markets faced heavy selling pressure over the past two trading sessions, with the S&P BSE Sensex falling more than 1,500 points. On Thursday, the Sensex ended at 80,080.57, down 706 points, while the NSE Nifty50 dropped 211 points to 24,500.90.
The decline was broad-based, with only five Sensex constituents closing in the green. Titan led the modest gains with a 1.2% rise, followed by Mahindra & Mahindra (0.61%), Larsen & Toubro (0.27%), Axis Bank (0.46%), and Reliance Industries (0.17%).
On the other hand, IT heavyweights and financials took the biggest hit—HCL Technologies fell 2.85%, Infosys dropped 1.95%, Power Grid declined 1.93%, TCS lost 1.89%, and HDFC Bank slipped 1.55%.
Mid- and small-cap segments were also not spared. Nifty Midcap100 declined 1.3%, while Nifty Smallcap100 fell 1.47%. Among sectoral indices, consumer durables managed a minor gain of 0.49%, while PSU banks edged up 0.33%. Other sectors, including IT, banking, realty, FMCG, and telecom, posted losses of around 1%.
TARIFF CONCERNS SOUR SENTIMENTS
Investors remain wary as uncertainty over US tariffs on Indian imports continues to weigh on sentiment. Vinod Nair, Head of Research at Geojit Investments, noted, “Domestic equities ended lower as pessimism took hold following the implementation of tariffs on Indian goods, dampening investor sentiment. While the cotton import duty exemption briefly lifted hopes of policy support to counter tariff impacts, investor mood remained fragile, with mid- and small-caps underperforming amid risk-off sentiment.”
Ajit Mishra, SVP, Research at Religare Broking, said the market’s downward pressure is not limited to tariffs alone. “Markets extended their decline on monthly expiry day, losing nearly a percent and continuing the corrective trend. Heavyweight stocks dragged the index lower, and in the absence of major domestic triggers, global developments continue to drive near-term direction. On the technical front, Nifty has breached its medium-term support at the 100-day EMA of around 24,600. The next support is seen in the 24,250–24,350 zone, while resistance lies in the 24,650–24,800 range. Traders should exercise caution and align positions with prevailing trends.”
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, added, “Markets are in a consolidation phase. US tariffs are triggering reactions, but Nifty’s 24,500 level appears to be a mid-term support. Range-bound trading and perceived weakness are creating selling pressure, though we are seeing some buying interest at lower levels.”
The sell-off hit IT and financial stocks hardest. On the Nifty, the largest drags were Shriram Finance, HCL Technologies, TCS, Power Grid, and Infosys. Consumer durables remained a bright spot, supported by expectations of GST rationalisation and festive demand. Titan, Adani Enterprises, Coal India, Reliance Industries, and Hero MotoCorp bucked the broader trend, providing some cushion to indices.
According to Gaurav Garg of Lemonn Markets Desk, “Indian equity markets extended their losing streak for a second session amid broad-based selling pressure. Weakness was visible across most sectors, reflecting cautious investor sentiment amid global and domestic headwinds. Foreign fund outflows and tariff fears are keeping volatility elevated, while market participants remain cautious ahead of key economic data and further global developments.”
WHAT NEXT?
Market participants are watching closely as global trade tensions and domestic fiscal cues intersect. While the US tariffs have rattled sentiment, analysts suggest that support may emerge from festive consumption and policy measures.
For now, Dalal Street is navigating choppy waters. Investors are advised to watch support levels, remain selective in stock picking, and keep an eye on both domestic triggers and global developments that could determine the market’s next move.
– Ends