Sensex, Nifty Extend Losing Streak As Global Trade Worries Roil Markets

Indian benchmark indices, Sensex and Nifty 50 continued their downward trajectory on Friday, marking a second consecutive day of losses with both indices falling over 1 per cent amid rising global trade tensions. The risk-off sentiment was fueled by fears of a potential trade war following US President Donald Trump's announcement of reciprocal tariffs.

At the close, the Sensex was down 930.67 points, or 1.22 per cent, settling at 75,364.69, while the Nifty dropped 345.65 points, or 1.49 per cent, to 22,904.45. Market breadth remained negative, with 1,081 stocks advancing, 2,721 declining, and 131 remaining unchanged.

Investors saw over Rs 11 lakh crore in wealth eroded as panic selling swept through equity markets. ONGC, Hindalco, and Cipla emerged as the biggest losers on the Nifty 50, each plummeting more than 6 per cent amid the intensifying sell-off.

Sectorial Update

All sectoral indices ended the day in the red, with the auto, pharma, IT, and metals sectors bearing the brunt of the decline. 

Broader Market Update

Broader markets fared even worse, with the Nifty Midcap 100 and Nifty Smallcap 100 indices plummeting up to 3 per cent during the afternoon session as investor sentiment remained fragile.

Also Read: What Is A Reciprocal Tariff? Here's How It Affects The Trade Relations Between Countries

Expert Comment

"The recent implementation of higher-than-anticipated U.S. tariffs has had a significant impact on global markets, triggering a bearish trend as investors assess the broader implications. The likelihood of retaliatory measures against the U.S. has further heightened uncertainty. U.S. bond yields and oil prices are trending downward, reflecting concerns over potential economic slowdown and increased recessionary risks," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

"Domestically, while the direct impact of these tariffs is relatively moderate compared to other major economies, it remains more substantial than initially projected. As Q4 approaches, a sequential improvement in corporate performance is anticipated. However, prevailing weak market sentiment suggests that the phase of consolidation may persist in the near term," he added.

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