Indian Stock Market Slips Fifth Day in a Row as Trade Uncertainty and Tariff Fears Mount

Mumbai: The Indian stock market slips continued for a fifth straight session on Friday, as domestic equities came under pressure from persistent foreign investor selling, rising uncertainty over an India–US trade agreement, and renewed concerns around potential tariff action. Cautious sentiment dominated Dalal Street, with investors staying on the sidelines amid global and domestic headwinds that weighed heavily on risk appetite.

Adding to the nervousness were fresh tariff threats after US President Donald Trump approved a sanctions bill that could impose duties as high as 500 per cent on countries purchasing Russian oil, raising fears of broader trade disruptions.

Indian Stock Market Slips as Sensex and Nifty Extend Losses

By the close of trade, the Sensex declined by 605 points, or 0.72 per cent, to end the session at 83,576. The Nifty also finished lower, shedding 193.5 points, or 0.75 per cent, to settle at 25,683. With this decline, benchmark indices slipped to their lowest levels in more than two months.

The Nifty breached the key psychological level of 25,700 during the session. It opened at 25,840, touched an intraday high of 25,940, and then faced sustained profit booking that dragged the index down to an intraday low of 25,648 before closing in negative territory.

Global and Domestic Triggers Keep Investors on Edge

Market participants remained cautious ahead of a critical ruling by the US Supreme Court on the legality of US tariffs, as well as the release of India’s domestic inflation data for December, scheduled for Monday. Analysts said these events could influence near-term market direction and investor positioning.

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Sentiment was further dented by continued foreign institutional investor outflows, which have added pressure on equities over recent sessions. The combination of geopolitical uncertainty, trade-related risks and global policy developments has kept volatility elevated across markets.

Sectoral Performance, Broader Markets and Rupee Movement

On the Nifty, ONGC and Bharat Electronics emerged as notable gainers, offering limited support to the index. However, sectoral performance remained largely weak. Realty stocks bore the brunt of the sell-off, with the Nifty Realty index falling 2.12 per cent. Auto stocks declined 1.11 per cent, while FMCG and consumer durables slipped 1.17 per cent each. Except for IT, PSU banking, and oil and gas, all other sectoral indices ended in the red candle.

The broader market mirrored the weakness seen in frontline indices. The Nifty Midcap 100 index fell 0.69 per cent, while the Nifty Smallcap 100 declined 0.79 per cent, reflecting cautious sentiment across market segments.

Meanwhile, the Indian rupee weakened by 22 paise to close at 90.11 against the US dollar, pressured by falling equity markets and sustained foreign fund selling. Analysts said that while markets may trade within a range in the near term, strong domestic GDP growth expectations and upcoming third-quarter earnings particularly from midcap companies could help stabilise sentiment despite ongoing geopolitical headwinds.

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