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Sensex, Nifty Fall for 2nd Day Amid US Tariff, Trade Deal Worries

Benchmark indices Sensex and Nifty 50 extended their decline for a second straight session, closing lower amid concerns over new US tariffs related to Iran trade. Sectoral performance was mixed, with Metal and PSU Bank indices posting strong gains while the IT index fell over 1%. Analysts noted the market's cautious, range-bound activity, attributing it to uncertainty surrounding the India-US trade deal and risk-averse foreign investors. Technically, the market is seen consolidating in a broad range, with momentum indicators suggesting a lack of strong buying pressure.

Key Points: Sensex, Nifty Extend Losses on US Tariff, Trade Deal Concerns

  • Second consecutive session of losses
  • US tariffs on Iran trade partners weigh
  • Metal and PSU Bank indices rally over 2%
  • IT sector was the top loser
2 min read

Stock market extends loss for second consecutive session

Indian stock markets fell for a second session amid US tariff fears and trade deal uncertainty. Metal and PSU bank stocks gained while IT declined.

"Domestic markets remained cautious amid lingering uncertainty over the India-US trade deal, with FIIs staying risk-averse. - Vinod Nair"

Mumbai, January 14

The Benchmark indices, Sensex and Nifty 50, extended losses for the second consecutive session on Wednesday.

At close, the Sensex dropped 245 points, or 0.29%, to end at 83,382.71, while the Nifty 50 fell 67 points, or 0.26%, to settle at 25,665.60.

Most sectoral indices ended lower; however, the Nifty Metal (2.70%) and PSU Bank (2.13%) posted solid gains.

The market opened in the red, extending selling pressure from the previous trading session amid continued concerns over new 25 per cent US tariffs on countries engaged in trade with Iran..

Shrikant Chouhan, Head Equity Research, Kotak Securities, said, "The benchmark indices witnessed range-bound activity. The Nifty ended 67 points lower, while the Sensex was down by 245 points. Among sectors, Metal and PSU Bank indices rallied over 2 per cent, whereas the IT index lost the most, shedding over 1 per cent. Technically, after a muted open, the market registered narrow-range activity. On the lower side, it found support near 25,600/83200, while intraday profit booking was seen near 25,800/83800."

Vinod Nair, Head of Research, Geojit Investments Limited, said, "Domestic markets remained cautious amid lingering uncertainty over the India-US trade deal, with FIIs staying risk-averse. However, the restart of negotiations this week has instilled renewed hopes. Metals led the rally as prices climbed on expectations of U.S. rate cuts, supported by softer inflation data and safe-haven demand amid geopolitical tensions. Broader markets performed well given selective buying in mid- and small-cap segments."

"Globally, equities traded mixed as investors awaited the US December PPI and major bank earnings. Looking ahead, focus will shift to Q3 FY26 earnings, where initial IT results were broadly in line with expectations, though bottom-line performance was impacted by one-off costs," he added.

Vatsal Bhuva, Technical Analyst at LKP Securities, said, "The index is currently consolidating above its falling trendline breakout levels and is sustaining above both its 20-day and 50-day SMA, indicating a structurally positive setup. However, momentum appears to be weakening as the RSI is placed near 53 and is slightly sloping downwards, highlighting a lack of strong buying momentum. The index is expected to regain momentum once it decisively reclaims the 59800 level. Until then, the index is likely to trade in a broad range of 59000-59800, where 59200-59150 acts as a crucial support zone near the 50-day SMA, while 59800 will continue to act as the immediate range resistance."

- ANI

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Reader Comments

P
Priya S
This volatility is nerve-wracking for small investors like me. Every time the US sneezes, our market catches a cold. When will our markets decouple and move on domestic fundamentals? The constant FII outflow news is depressing.
V
Vikram M
The analysts quoted give a balanced view, but I find these daily fluctuations less important. For long-term investors, these are just noise. The key is the Q3 earnings season starting now. If corporate India delivers, the market will find its footing. SIPs continue as usual.
A
Ananya R
Respectfully, the article focuses too much on short-term technical levels. For the common saver, the message should be about asset allocation and not trying to time the market. A 0.3% drop is not an "extended loss", it's normal market movement. Media should avoid sensationalism.
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Sarah B
Watching from the US, it's interesting to see how directly our Fed policies and trade tensions impact Indian markets. The hope for rate cuts is driving metal prices globally. The interconnectivity is fascinating, though I understand it causes anxiety for local investors.
K
Karthik V
PSU Bank index up 2%! That's the real story. The government's focus on banking sector health is paying off. This isn't a broad market fall, it's sector rotation. Money moving from overvalued IT to value in PSUs and commodities. Smart money knows what's up.

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