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Sensex, Nifty Fall as Metal Stocks Plunge Over 4%; Global Headwinds Weigh

Indian equity benchmarks Sensex and Nifty opened lower, pressured by a sharp over 4% plunge in metal stocks. Most sectoral indices traded in the red, with only FMCG, pharma, and consumer durables showing resilience. Analysts point to global headwinds, including geopolitical tensions and rising Brent crude prices near $70. However, positive projections from the Economic Survey for FY27 GDP growth are expected to impart market resilience.

Key Points: Sensex, Nifty Drop as Metal Index Crashes Over 4%

  • Metal index plunges over 4%
  • All sectors red except FMCG, pharma
  • FIIs net sellers, DIIs net buyers
  • Economic Survey projects 6.8-7.2% GDP growth
2 min read

Sensex, Nifty post losses as metal index plunges over 4 pc

Indian markets trade lower with metal stocks plunging over 4%. Analysts cite global trade tensions and rising crude prices as headwinds.

"Geopolitical issues continue to plague global trade with continuous threats of tariff weaponisation - Market Analysts"

Mumbai, Jan 30

The Indian equity markets traded lower early on Friday as the metal stocks plummeted under pressure.

As of 9.30 am, Sensex eased 525 points, or 0.64 per cent, to reach 82,040, and Nifty lost 159 points, or 0.63 per cent, to settle at 25,259.

Main broad-cap indices posted higher losses than the benchmark indices, as the Nifty Midcap 100 declined 0.81 per cent, and the Nifty Smallcap 100 lost 1.19 per cent.

All sectoral indices were trading in the red except FMCG, pharma and consumer durables. Nifty metal and IT were down 4.28 per cent and 1.41 per cent, respectively.

Immediate support lies at 25,250-25,300 zone, while resistance is anchored at 25,550-25,600 zone, market watchers said.

Analysts said that geopolitical issues continue to plague global trade with continuous threats of tariff weaponisation by US President Donald Trump. The spike in Brent crude to near $70 is a headwind for Indian macros in general and industries that use oil as inputs, in particular.

These headwinds are likely to be countered by the positive message from the Economic Survey that projects GDP growth of 6.8 per cent to 7.2 per cent growth in FY 27.

As India is headed for around 10 per cent nominal GDP growth in FY27, 15 to 17 per cent earnings growth can be expected in FY27, imparting resilience to the market.

From early 2027 onwards, India's success in diversification of its export market away from the US will gain momentum with the India- EU trade deal getting implemented, they added.

Asia-Pacific markets mostly traded lower in the morning session after Trump said he will announce his choice for the next head of the US Federal Reserve on Friday.

In Asian markets, China's Shanghai index eased 1.19 per cent, and Shenzhen lost 0.96 per cent, Japan's Nikkei declined 0.35, and Hong Kong's Hang Seng Index lost 1.66 per cent. South Korea's Kospi added 0.59 per cent.

The US markets ended largely in the green overnight as Nasdaq lost 0.72 per cent. The S&P 500 eased 0.13 per cent, and the Dow gained 0.11 per cent.

On January 29, foreign institutional investors (FIIs) net sold equities worth Rs 394 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 2,634 crore.

- IANS

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Reader Comments

P
Priya S
Smallcap and midcap indices falling more than Sensex/Nifty is the real story here. Retail investors like me who entered recently are feeling the pinch. Hope this isn't the start of a broader sell-off.
R
Rohit P
Global factors are always a spoilsport for our markets. Trump's tariff threats and Fed chair announcement creating volatility. But DIIs buying over ₹2600 cr while FIIs sold is a strong sign of domestic confidence. 🇮🇳
S
Sarah B
Watching from the US. The article mentions India diversifying export markets away from the US with an EU trade deal. As an investor, I think that's a very smart strategic move for long-term resilience. The short-term metal sector pain might be an opportunity.
V
Vikram M
The spike in Brent crude is a major concern. It affects everything from fuel prices to manufacturing costs. The government needs to have a clear plan to manage this external shock, not just rely on positive survey numbers.
K
Karthik V
FMCG, pharma holding up in the green makes sense - defensive sectors. When markets are uncertain, people still buy soap and medicines. Good to see some sectors providing stability. Maybe time to rebalance the portfolio.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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