Whalesbook
Market Slides Amid Tariff Uncertainty
Indian stock markets closed lower on Friday, marking the fifth consecutive session of declines. The benchmark BSE Sensex shed 604.72 points, or 0.72 per cent, to settle at 83,576.24. The NSE Nifty 50 followed suit, dropping 193.55 points, or 0.75 per cent, to end at 25,683.30. Both indices hit intraday lows that neared their closing levels, reflecting significant selling pressure.
The prevailing caution stems from anticipation of a US Supreme Court ruling on the legality of tariffs imposed during the Trump administration, which could impact India-US trade relations. Geopolitical concerns, including potential US trade measures linked to Russia-related sanctions, added to the negative sentiment. Persistent outflows by foreign institutional investors (FIIs) further exacerbated the market's downturn. FIIs offloaded equities worth ₹3,367.12 crore on Thursday, while domestic institutional investors (DIIs) bought stocks worth ₹3,701.17 crore.
Global Headwinds and FII Outflows
Vinod Nair, Head of Research at Geojit Investments, noted that the market is in a consolidation phase, pressured by weak global cues and rising global bond yields. Despite these headwinds, Nair pointed to a positive outlook for Q3 earnings, with domestic GDP growth expected to remain robust. He anticipates a recovery led by midcap companies, which could eventually stabilize investor sentiment.
However, the immediate technical outlook suggests a shift from consolidation to a short-term corrective phase. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, observed that the Nifty 50 has corrected approximately 2.62 per cent from its all-time high of 26,373 recorded on January 5, 2026. The India VIX, a measure of market volatility, surged by 16 per cent to hover near the 11 mark, a level that continues to be a cause for concern.
Sectoral Performance and Stock Movers
The broader market remained under pressure. The midcap index depreciated by 0.7 per cent, while the smallcap index tumbled close to 2 per cent, with Ajit Mishra of Religare Broking highlighting a 3.8 per cent correction in the small-cap index over the past two sessions. Sectorally, oil & gas and IT indices posted modest gains, while realty and auto sectors emerged as the top two laggards. Bank Nifty, however, outperformed the broader market despite posting losses.
Among the Nifty 50 constituents, Asian Paints, ONGC, HCL Tech, and Bharat Electronics were among the gainers. Conversely, Adani Enterprises, NTPC, Adani Ports, ICICI Bank, and Jio Financial Services were major laggards. Heavyweight stocks like HDFC Bank and Trent saw significant declines of 6-10 per cent during the week. IEX shares experienced volatility due to ongoing developments regarding market coupling orders. Manappuram Finance faced pressure on reports that the central bank raised objections to Bain Capital's proposed stake acquisition.