Indian equity benchmarks extended their losing streak on Friday, with the Nifty50 index struggling below the crucial 26,000 mark and the Sensex shedding over 400 points. The sell-off was driven by persistent foreign fund outflows and heightened global anxiety over potential US sanctions.
Market Plunges on Global Headwinds
The trading session opened on a weak note. The primary triggers were concerns over a US threat to impose tariffs as high as 500% on countries importing Russian crude oil and the continuation of heavy selling by foreign portfolio investors (FPIs). By late morning, the Nifty50 had trimmed 130 points or 0.50% to 25,746. The BSE Sensex was down 433 points at 83,747.
Market experts pointed out that the indices have been under pressure for several sessions. Ajay Bagga, a Banking and Market Expert, told ANI that after four consecutive days of decline, Indian markets might look at consolidation. He noted that foreign portfolio investors have offloaded about $900 million worth of Indian shares in January so far, following record outflows in the previous period.
Top Gainers and Losers in the Sell-Off
Despite the broad market weakness, some stocks managed to stay in positive territory. On the Nifty50, Eternal was the top gainer, rising 1.79%, followed by HCL Tech and Asian Paints. On the Sensex, Eternal, HCL Tech, and Asian Paints also led the gainers' pack.
However, the banking sector exerted significant downward pressure. ICICI Bank was the biggest drag on both indices, falling over 2%. Adani group stocks, including Adani Enterprises and Adani Ports SEZ, were also among the top losers, reflecting continued sector-specific caution.
Earnings Season and Global Cues in Focus
With the recent slump, analysts suggest the market is entering an oversold zone, which could pave the way for a technical recovery. Investors are now shifting their attention to the upcoming corporate earnings season for fresh directional cues.
Globally, later market sentiment was poised to be influenced by two major events: the US jobs report for December and a crucial US Supreme Court ruling on the legality of Trump-era tariffs. The court's decision, particularly on the refund of collected duties, could have massive financial implications and reshape trade policies.
(Disclaimer: Recommendations and views on the stock market given by experts are their own and do not represent the views of this publication.)
