Indian Markets Decline Sharply Amid Trump Tariff Concerns and Foreign Fund Outflows
Indian equity markets declined sharply on Friday with Sensex falling nearly 700 points to 83,700 level and Nifty dropping 200 points to 25,734.10. The decline was driven by cautious sentiment ahead of US court ruling on Trump's tariffs and foreign fund outflows. Market experts suggest potential rally if tariffs are declared illegal, as India has been worst affected. Sectoral performance was largely negative with realty index down over 2%, while market breadth showed widespread selling pressure.
*this image is generated using AI for illustrative purposes only.
Indian equity markets faced significant selling pressure during Friday's trading session, with major benchmarks declining sharply amid concerns over a pending US court ruling on Trump's tariffs and ongoing foreign fund outflows. The cautious market sentiment reflected investor uncertainty about potential policy implications and their impact on Indian equities.
Market Performance Overview
The benchmark indices showed substantial weakness during the trading session, with both Sensex and Nifty experiencing notable declines.
| Index | Level | Change (Points) | Change (%) | Intraday Low |
|---|---|---|---|---|
| Sensex (12:13 pm) | 83,757.55 | -423.41 | -0.50% | 83,707.98 |
| Nifty 50 | 25,750.25 | -126.60 | -0.49% | - |
| Midcap Index | - | - | -0.30% | - |
| Smallcap Index | - | - | -0.84% | - |
During the day, the Sensex slumped nearly 700 points to the 83,700 level, while the Nifty 50 fell by 200 points to 25,734.10, reflecting broad-based selling pressure across market segments.
Expert Analysis on Tariff Impact
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, provided insights on the potential market implications of the US court ruling. He indicated a high probability of the verdict going against Trump, though emphasized that the details would be crucial - specifically whether it would result in a partial striking down of the tariffs or completely declaring them illegal.
According to Vijayakumar, if the Supreme Court declares Trump tariffs illegal, there could be a rally in Indian markets, as India has been among the worst affected by the tariffs. This potential outcome represents a key factor that market participants are closely monitoring.
Sectoral and Stock Performance
Sectoral performance was predominantly negative, with most indices trading in red territory. The realty index witnessed particularly sharp declines, falling over 2%. Only PSU Bank, IT, and oil & gas sectors managed to avoid the negative trend.
Top Nifty 50 Movers
Gainers:
- Eternal (leading gainers)
- HCL Tech
- Asian Paints
- ONGC
- BEL
Laggards:
- ICICI Bank
- Adani Enterprises
- Adani Ports
- Max Health
- Maruti Suzuki
Broader Market Activity
Market breadth indicated widespread selling pressure, with a total of 3,041 stocks traded on the NSE. Among these, 821 stocks advanced while 2,116 stocks declined, and 104 stocks remained unchanged. The market showed significant volatility, with 21 stocks hitting their 52-week high and 218 stocks touching their 52-week low.
Circuit breaker activity was notable, with 34 stocks hitting the upper circuit and 51 stocks hitting the lower circuit, indicating heightened market volatility.
Midcap and Smallcap Movements
Within the midcap segment, National Aluminium, Ashok Leyland, Indian Bank, Indus Towers, and Coromandel International gained 2-3%, while Hitachi Energy, Godrej Properties, 360 One WAM, and Waaree Energies declined 3-6%.
In the smallcap space, IEX emerged as the top loser, falling over 5% as the CERC coupling order stayed. Other notable decliners included Tejas Networks, Trident, Afcons, and JWL, which fell 3-4%. On the positive side, Star Health, Ramco Cements, GE Ship, and GRSE gained 1-2%.
On the BSE, MTAR Tech, National Aluminium, Ujjivan SFB, Ashok Leyland, and Hindustan Zinc climbed 3-6%, while Elecon, IEX, Hitachi Energy, GV TD, and Godrej Properties declined 5-15%.
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