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Sensex, Nifty Plunge 2.5% Amid Global Trade and Geopolitical Tensions

Indian equity markets closed the week sharply lower, with the Sensex and Nifty each falling around 2.5% amid persistent global uncertainties. Profit-booking in sectors like autos and metals weighed on indices, while broader midcap and smallcap indices fell even more. Market sentiment was hit by a confluence of risks including US-India tariff talks, geopolitical tensions, and continued foreign investor outflows. Analysts expect near-term volatility to persist, especially for sectors with US exposure, keeping markets range-bound with a mixed bias.

Key Points: Sensex, Nifty Fall 2.5% on Global Uncertainties

  • Benchmarks down ~2.5% this week
  • Profit-booking in autos, metals, oil & gas
  • Global headwinds from trade, geopolitics
  • Key IT earnings due next week
2 min read

Sensex, Nifty down around 2.5 pc this week amid heightened global uncertainties

Indian equity benchmarks fell sharply this week due to US-India tariff talks, geopolitical risks, and FII outflows. Analysis of key sectors and future outlook.

"Volatility is likely to persist in the near term, particularly in US exposed companies and sectors such as metals and oil and gas - Analysts"

Mumbai, Jan 10

The Indian equity benchmarks closed this week down around 2.5 per cent, continuing decline through five sessions amid persistent uncertainty over the US-India tariff talks and escalating geopolitical tensions.

Profit-booking in autos, metals, and oil and gas weighed on indices during the week, while selective buying in consumer durables, on hopes of a demand revival, offered brief respite.

Nifty dipped 2.45 per cent this week and 0.75 per cent on the last trading day to end at 25,638. At close, Sensex was down 604 points or 0.72 per cent at 83,576. It dipped 2.55 per cent during the week.

Bank Nifty on the weekly chart has formed a dark cloud cover candlestick pattern indicating selling pressure at higher levels, according to analysts.

Domestic markets remained in a risk-off mode, especially concerns over potential US trade measures linked to Russia-related sanctions, analysts said. Market sentiment weakened amid global headwinds, including the Venezuela-US standoff, concerns over Russian oil imports, China's restrictions on rare earth exports, and continued FII outflows.

Broader indices performed in line with benchmark indices during the week, with the Nifty Midcap100 down 2.64 per cent, while Nifty Smallcap100 declined 3.08 per cent.

Investors are keeping an eye ahead of key Q3 FY26 IT earnings scheduled for release next week.

Meanwhile, the court is expected to rule on US President Donald Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose broad global tariffs, including a 10 per cent base levy and higher reciprocal duties on key trading partners.

Volatility is likely to persist in the near term, particularly in US exposed companies and sectors such as metals and oil and gas, according to analysts.

Overall, markets are expected to stay range-bound with a mixed bias, maintaining a balance between external risks and domestic fundamentals, they noted.

- IANS

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Reader Comments

P
Priya S
Feeling the pinch in my portfolio this week. The constant FII outflows are really hurting. When will our domestic institutions step up and provide stronger support? The reliance on foreign money makes us too vulnerable to these global swings.
R
Rohit P
The US tariff talks are creating so much uncertainty. It feels like our markets are at the mercy of decisions made in Washington. We need a more independent and resilient economic policy. Jai Hind!
S
Sarah B
As an NRI investor, this volatility is expected but still stressful. The article rightly points to IT earnings next week - that sector's performance will be a key indicator. Hoping for some positive surprises from TCS and Infosys.
V
Vikram M
Smallcap and midcap down more than the benchmarks... ouch. That's where the real pain is for retail investors like me. Time to hold tight and not panic sell. Remember, market corrections are normal.
K
Karthik V
With all due respect to the analysts quoted, the constant "range-bound with mixed bias" prediction feels like a safe, non-committal answer. A bit more clarity on potential triggers for recovery would be helpful for common investors.
M
Michael C
The geopolitical

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