Indian Stock Market Fall Deepens as India US Trade Tensions Trigger Sharp Sell-Off

Mumbai: The Indian stock market fall intensified on Thursday, with domestic equity benchmarks witnessing their sharpest decline in nearly a month as losses extended for a fourth consecutive session. Investor sentiment weakened sharply amid mounting concerns over India–US trade relations, after reports suggested that the administration of US President Donald Trump may consider imposing punitive tariffs of up to 500 per cent on Indian exports. The growing uncertainty around potential trade retaliation led to widespread risk aversion and heavy selling pressure across sectors.

Market participants turned cautious as fears mounted that such aggressive trade measures could severely impact India’s export-driven industries, triggering a broad-based sell-off that dragged benchmark indices significantly lower by the close of trade.

Indian Stock Market Fall: Sensex and Nifty End Sharply Lower

By the end of the session, the Sensex settled at 84,180.96, registering a steep decline of 780.18 points, or 0.92 per cent. The Nifty also closed in negative territory at 25,876.85, slipping 263.9 points, or 1.01 per cent, as selling pressure intensified in the latter half of the trading day.

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Market experts noted that technical levels have become increasingly important amid the ongoing correction. According to analysts, a sustained close below the 25,900 mark on the Nifty raises the likelihood of further downside toward the 25,800–25,700 range. On the upside, a decisive move above 26,000 is seen as critical to stabilising near-term market sentiment.

Expert View on Trend and Near-Term Market Outlook

Despite the sharp correction, analysts said that the broader trend structure remains intact. Experts pointed out that while the weekly and monthly charts continue to indicate a positive long-term outlook, short-term corrective pressure could persist if key support levels fail to hold.

They added that global trade uncertainties, particularly around tariffs and geopolitical developments, are likely to keep investors on edge in the near term. As a result, markets may continue to witness heightened volatility until there is greater clarity on the trade front.

Indian Stock Market Fall: Sectors and Stocks Under Pressure

The selling pressure was visible across heavyweight stocks on the Sensex, with TCS, Tech Mahindra, Larsen & Toubro, Reliance Industries and Tata Steel emerging as the top laggards. In contrast, only a handful of stocks managed to end in positive territory, including Eternal, ICICI Bank, Bajaj Finance and BEL.

Losses were even more severe in the broader market, where mid- and small-cap stocks faced sharp declines. Both the Nifty Midcap 100 and Nifty Smallcap 100 indices fell close to 2 per cent each, reflecting heightened risk aversion among investors.

Sector-wise, all indices closed in the red. Metal stocks bore the brunt of the sell-off, with the Nifty Metal index plunging over 3 per cent. Oil and gas stocks also remained under pressure, as the Nifty Oil and Gas index dropped around 2.8 per cent. PSU banking and IT stocks were among the other major laggards, declining by roughly 2 per cent each.

Analysts said the overall market mood remains cautious, as investors continue to weigh the impact of global trade tensions and the potential fallout of higher tariffs on India’s key export sectors.

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