Indian equity markets witnessed their worst session in over four months as Sensex and Nifty extended losses due to U.S. tariff concerns, persistent FII selling, weak global cues, and rising volatility, keeping investors on edge.
Indian Stock Market Plunges: Fourth Consecutive Session of Losses
New Delhi: The Indian stock market witnessed a sharp sell-off on Thursday. Both the Sensex and Nifty were headed for their fourth consecutive session of losses, marking the worst single-day performance in the last four months. Recent statements by US President Donald Trump and growing concerns over US tariff policies weakened investor sentiment.
Around 12:10 PM, the Sensex was down 713 points at 84,247, while the Nifty 50 slipped below its 50-DMA and was trading around 25,889. All sectors were in red, with the metal, oil, and gas sectors suffering the biggest losses.
Indian markets open volatile; Sensex slips 50 points, Nifty flat
Continuous Selling by FIIs
Foreign Institutional Investors (FIIs) sold shares worth approximately ₹1,527 crore on Wednesday. So far in January, FIIs have withdrawn around ₹5,760 crore. This trend, following record outflows in 2025, remains a cause for concern for investors.
US-India Trade Tensions
The market was rattled by reports of the US potentially imposing a 500% tariff on countries buying oil from Russia. India also imports crude oil from Russia, raising concerns about the impact on Indian exports and the economy.
Weak Global Cues
Asian markets showed weakness. Japan's Nikkei and Hong Kong's Hang Seng were trading in the red. US markets also closed lower on Wednesday.
Weekly Derivatives Expiry
Thursday marked the weekly expiry of Sensex derivatives. Such days often see increased market volatility due to position unwinding and rollovers.
Rise in Crude Oil Prices
Brent crude prices rose above $60 per barrel. India is a country dependent on oil imports, so a surge in crude oil prices is considered a negative signal for the market.
Markets Remain Volatile as Rupee Weakens Against Dollar
Spike in India VIX
The India VIX surged by nearly 9% to 10.83, reflecting increasing uncertainty and fear among investors.
Profit booking in metal stocks
Metal stocks witnessed profit booking after their recent rally. The decline in copper, aluminum, gold, and silver prices impacted the shares of metal companies.
Markets close week cautiously; Sensex rises, Nifty edges higher
Technical Outlook
Experts believe that although short-term pressure persists, the long-term market trend remains positive. For the Nifty, 26,373 is considered a resistance level and 26,000 a strong support level.
