Indian benchmark equity indices extended their losing streak for the fifth consecutive session on Friday, with the Sensex and Nifty facing renewed pressure from US tariff concerns and sustained foreign institutional investor outflows. Market sentiment remained cautious as global trade-related uncertainties continued to weigh on investor confidence.

Market Performance

The Sensex experienced significant volatility during the trading session, rebounding briefly in early trade before declining sharply. The index fell 335 points from its day's high to close at 84,164.07, while the broader Nifty declined 21.50 points to settle at 25,850.85.

Market breadth remained negative with approximately 1,349 shares advancing, 1,959 shares declining, and 175 shares unchanged, reflecting the overall bearish sentiment across the broader market.

Key Sectoral Movements

Among the Nifty50 constituents, ICICI Bank, Adani Enterprises, and Adani Ports and Special Economic Zone emerged as major laggards, declining up to 2%. On the positive side, ETERNAL and Oil & Natural Gas Corporation were the top gainers, rising up to 3% during the session.

Foreign Investment Outflows

Foreign institutional investors continued their selling spree, offloading equities worth ₹3,367.12 crore on Thursday. This marked the fourth straight session of selling by FIIs after a brief pause on January 2, adding significant pressure to the domestic equity markets.

US Tariff Concerns Drive Market Sentiment

The benchmark indices have declined sharply over recent sessions following Trump's hints at raising tariffs on Indian goods over New Delhi's purchase of Russian crude. Over the last four sessions, the Sensex and Nifty have declined 1.8% and 1.7%, respectively.

Trump has approved a sanctions bill that could impose 500% tariffs on countries purchasing Russian oil. US Senator Lindsey Graham confirmed having a productive meeting with Trump at the White House, stating that the bipartisan Russia sanctions bill would give tremendous leverage against countries like China, India, and Brazil to incentivize them to stop buying cheap Russian oil.

Additional Market Pressures

Several other factors contributed to the market decline:

• Crude Oil Prices: Brent crude rose 0.53% to $62.32 per barrel, increasing India's import bill and inflation risks
• Currency Weakness: The rupee fell 7 paise to 89.97 against the US dollar amid sustained FII outflows and higher crude prices
• Supreme Court Ruling: Investors awaited a US Supreme Court ruling on the legality of tariffs imposed by Trump, with potential refunds of nearly $150 billion to importers

Technical Outlook

According to technical analysts, the Nifty has breached crucial support levels. The index violated its 50-day exponential moving average at 25,911 and the previous swing low of 25,878 on the daily chart. The next meaningful support level appears near 25,700, coinciding with the December 2025 swing low. On the upside, the 26,000–26,050 zone is expected to act as strong resistance in the near term.

Market experts emphasized that persistent concerns over potential US tariff actions linked to India's Russian oil imports have kept sentiment fragile, while the lack of visible progress in US-India trade discussions reinforces institutional caution, particularly among foreign investors.

Indian benchmark indices continued their downward trajectory on Friday morning, with both the Sensex and Nifty opening lower amid ongoing concerns over foreign fund outflows and potential US trade policy changes. The market sentiment remained cautious as investors grappled with persistent institutional selling pressure.

Market Performance Overview

The early trading session reflected the continued weakness in Indian equities. Key market movements included:

The decline followed Thursday's significant sell-off, when the Sensex tanked 780.18 points (0.92%) and the Nifty tumbled 263.90 points (1.01%). This extended selling pressure has resulted in substantial losses over recent sessions.

Four-Day Decline Trend

The market's recent performance highlights the severity of the current correction. Over the past four trading days, both indices have experienced notable declines:

Stock-Specific Movements

Among the 30 Sensex constituents, the session saw mixed performance with several major stocks leading the decline. The biggest laggards included ICICI Bank, Tata Motors Passenger Vehicles, NTPC, Adani Ports, Sun Pharma, and Trent. However, some stocks provided support to the indices, with Eternal, HCL Tech, Bharat Electronics, and Asian Paints emerging as notable gainers.

Institutional Investment Flows

Foreign and domestic institutional investor activity continued to show contrasting patterns on Thursday:

The data shows domestic investors partially offsetting foreign selling pressure, providing some stability to the market during the volatile period.

Market Outlook and Concerns

According to Ponmudi R, CEO of Enrich Money, Indian equity markets entered the session with a cautious undertone following the previous day's sharp sell-off. Risk appetite remained subdued due to global trade-related uncertainties continuing to weigh on investor sentiment. Persistent concerns over potential US tariff actions linked to India's Russian oil imports have kept sentiment fragile, while the lack of visible progress in US-India trade discussions reinforced institutional caution, particularly among foreign investors.

Global Market Context

Asian markets showed mixed performance during the session, with South Korea's Kospi index, Japan's Nikkei 225 index, and Shanghai's SSE Composite index trading higher, while Hong Kong's Hang Seng index quoted lower. US markets had ended on a mixed note on Thursday. Meanwhile, Brent crude, the global oil benchmark, climbed 0.53% to $62.32 per barrel, adding to the complex global market environment.