Indian equity markets extended their losing streak for the fourth consecutive session as geopolitical tensions and renewed fears of aggressive US tariff action rattled investor confidence. The Sensex slipped nearly 800 points during Thursday's session, while the Nifty 50 fell sharply below crucial technical levels, marking a decisive breakdown after a week of consolidation.

Market Performance and Technical Breakdown

The BSE Sensex declined 780.00 points to close at 84,181.00, while the Nifty 50 fell 264.00 points to settle at 25,877.00. The Nifty's close below the 25,900 mark represents what analysts described as a technically significant move, breaking down from its rising channel on the daily chart and ending below its 50-day exponential moving average for the first time since early October.

Broader Market Weakness Intensifies

Broader markets witnessed even sharper declines, with mid-cap and small-cap indices underperforming benchmark indices. The Nifty Midcap 100 and Nifty Smallcap 100 both fell close to 2.00%, with the midcap index slipping below its 20-day EMA while the smallcap index breached all key moving averages.

Trump Tariff Threats Trigger Selloff

The immediate trigger for the selloff came from fresh geopolitical developments involving US trade policy. Senator Lindsey Graham announced that Trump had approved a bipartisan Russia sanctions bill that could raise duties on Russian imports to at least 500.00% of their value. The proposed legislation could also be used as leverage against countries including India that continue to buy Russian oil.

Trump has warned of higher tariffs on Indian goods if New Delhi does not address US concerns related to Russian crude imports. Currently, the US has imposed tariffs of up to 50.00% on certain Indian products, with roughly half linked directly to India's oil purchases from Russia.

Sectoral Performance and Market Breadth

Market breadth deteriorated sharply as selling pressure broadened across all sectors. As many as 45 of the Nifty's 50 constituents ended the session in the red, with metal, oil and gas, and PSU bank stocks among the worst hit. Hindalco Industries and Wipro emerged as the biggest losers among frontline stocks, while ICICI Bank and SBI Life Insurance managed limited gains.

Technical Outlook and Support Levels

According to SBI Securities, the Nifty has crucial support in the 25,750-25,700 zone, with a sustained move below 25,700 potentially opening the door for deeper correction towards 25,550. On the upside, the 26,000-26,030 range is expected to act as immediate resistance. Foreign investor selling has continued with over ₹1,600.00 crore of outflows already recorded in the new year, adding to market pressure.

Indian equity markets extended their losing streak for the fourth consecutive session on Thursday, with benchmark indices falling below key psychological levels amid negative global cues. The sustained selling pressure reflected investor concerns over weak US economic data and escalating geopolitical tensions that weighed on market sentiment across Asian markets.

Market Performance Overview

The benchmark indices witnessed significant declines during Thursday's trading session. The following table summarizes the key market movements:

The Nifty 50's decline pushed the index below the psychologically important 26,000 level, while the Sensex fell by over 400 points. The broader market segments experienced even steeper losses, with the Nifty Midcap 100 falling 1.50% and the Smallcap 250 index declining 1.33%, indicating widespread selling pressure across market capitalizations.

Volatility and Market Sentiment

Market volatility surged during the session, with the volatility index VIX rising over 6% on Thursday. This sharp increase in the VIX reflects heightened uncertainty and fear among market participants, suggesting that investors are bracing for continued market turbulence in the near term.

Global Market Influence

Asian equity markets provided negative cues to Indian markets, extending their decline for the second consecutive session. The regional market weakness stemmed from disappointing US economic data and rising geopolitical tensions that dampened investor confidence across the region.

The weakness in Asian markets was compounded by negative sentiment in US futures markets. Despite hitting multiple highs earlier in the week, US stock futures traded lower, with S&P 500 futures declining 0.2% and Euro Stoxx futures falling 0.1%. This global market weakness created a challenging environment for Indian equities, contributing to the sustained selling pressure.

Market Outlook

The fourth consecutive session of losses highlights the fragile nature of current market sentiment, with investors closely monitoring global developments for further direction. The combination of weak US economic indicators and geopolitical uncertainties continues to weigh on market confidence, leading to broad-based selling across various market segments and increased volatility levels.