Market Today: Benchmark Indices Extend Losing Streak Amid Global Uncertainties
The Indian share market witnessed another turbulent session on Friday as the Sensex fell 491.95 points (0.58%) to close at 83,689.01, while the Nifty declined 151.30 points (0.58%) to settle near 25,725.55 at 12:40 PM. This marks the fifth consecutive day of losses for both benchmark indices, raising concerns among investors about the ongoing market correction.
According to Sensex Moneycontrol data, market breadth remained decidedly negative with 1,959 shares declining against 1,349 advances, reflecting widespread selling pressure across sectors.
Why Market is Falling Today: 5 Key Reasons Behind the Decline
1. Persistent Foreign Fund Outflows Pressure Share Market Today
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs 3,367.12 crore on Thursday alone. This marked the fourth straight session of net selling after a brief pause on January 2, putting significant downward pressure on the Sensex index and broader market sentiment.
The sustained FII exodus has been a major contributor to the market’s weakness, with global investors reassessing their India exposure amid trade uncertainty.
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2. Trump’s Tariff Threat: 500% Levy on Russian Oil Buyers
The biggest concern weighing on the share market today is the looming threat of 500% tariffs that US President Donald Trump could impose on countries purchasing Russian crude oil. India, being a significant buyer of discounted Russian oil, faces potential economic repercussions.
Senator Lindsey Graham confirmed that Trump approved a bipartisan Russia sanctions bill, stating: “This bill would give President Trump tremendous leverage against countries like China, India and Brazil to incentivize them to stop buying cheap Russian oil.”
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, explained: “After the sharp correction yesterday triggered by the possibility of about 500% tariff on India under the provisions of the Russia Sanctioning Act approved by President Trump, the market will be focused on the verdict expected today from the US Supreme Court on the legality of Trump tariffs.”
3. US Supreme Court Ruling on Tariff Legality Awaited
Adding to market anxiety, investors are closely watching a US Supreme Court ruling on the legality of tariffs imposed during Trump’s previous term. If declared illegal, the US government may be required to refund nearly USD 150 billion to importers, which could have far-reaching implications for global trade dynamics.
Dr. Vijayakumar added: “There is a high probability of the verdict going against Trump. If the Supreme Court declares Trump tariffs illegal, there would be a rally in India since India has been the worst affected by the 50% tariffs.”
4. Rising Crude Oil Prices Impact Import Bill
Brent crude, the global oil benchmark, rose 0.53% to USD 62.32 per barrel, adding to India’s inflationary concerns. Higher crude prices directly impact India’s import bill and put pressure on the rupee, creating a ripple effect across equity markets.
For a country that imports over 80% of its crude oil requirements, this price increase translates to higher input costs for industries and potential margin pressures.
5. Rupee Weakness Against US Dollar
The Indian rupee depreciated 7 paise to 89.97 against the US dollar in early trade Friday, reflecting sustained foreign capital outflows and weak domestic equity sentiment. Currency weakness makes imports more expensive and can fuel inflation, further dampening market sentiment.
Sectoral Performance: Winners and Losers in Today’s Market
Top Laggards on Nifty50:
- ICICI Bank – Down up to 2%
- Adani Enterprises – Declined up to 2%
- Adani Ports and Special Economic Zone – Lost up to 2%
Top Gainers:
- Oil & Natural Gas Corporation (ONGC) – Surged up to 3%
- [Stock Name] – Gained up to 3%
The banking and infrastructure sectors bore the brunt of selling pressure, while energy stocks found support from rising crude oil prices.
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Expert Analysis: What Lies Ahead for Share Market?
Cautious Sentiment Prevails
Ponmudi R, CEO of Enrich Money, commented: “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 is reinforcing institutional caution, particularly among foreign investors.”
The lack of clarity on trade negotiations between India and the US continues to create uncertainty, prompting investors to adopt a wait-and-watch approach.
Technical Outlook: Key Support and Resistance Levels
Devarsh Vakil, Head of Prime Research at HDFC Securities, provided technical insights: “The Nifty breached crucial support at its 50-day exponential moving average, currently at 25,911, and violated the previous swing low of 25,878 on the daily chart.”
Key Technical Levels to Watch:
- Support: 25,700 (December 2025 swing low)
- Resistance: 26,000-26,050 zone
Vakil warned that the breach of these critical support levels suggests further downside risk unless the market finds stability around the 25,700 mark.
Market Statistics: A Snapshot of Today’s Trading
| Index | Closing Level | Change | % Change |
|---|---|---|---|
| Sensex | 83,689.01 | -491.95 | -0.58% |
| Nifty 50 | 25,725.55 | -151.30 | -0.58% |
Market Breadth:
- Advances: 1,349 shares
- Declines: 1,959 shares
- Unchanged: 175 shares
What Should Investors Do Now?
Short-Term Strategy:
- Avoid panic selling – Market corrections are part of normal cycles
- Monitor US Supreme Court verdict – This could be a game-changer
- Watch 25,700 support level – A break below could trigger further selling
- Focus on quality stocks – Blue-chip companies with strong fundamentals
Long-Term Perspective:
Despite near-term volatility, India’s economic fundamentals remain strong. The ongoing correction could present buying opportunities for long-term investors with a 3-5 year horizon.
Key sectors to watch:
- Banking and financial services
- Information technology
- Pharmaceutical and healthcare
- Consumer goods
Global Cues and Their Impact on Indian Markets
The Indian share market today is not operating in isolation. Global factors including:
- US Federal Reserve policy outlook
- China’s economic recovery pace
- Middle East geopolitical tensions
- Global commodity price movements
All these elements continue to influence FII flows and overall market sentiment.
Conclusion: Navigating Uncertain Times
The Sensex share price decline and broader market weakness reflect genuine concerns about trade policies, foreign fund flows, and macroeconomic headwinds. However, experienced investors understand that volatility creates opportunities.
As we await clarity on US tariff policies and the Supreme Court’s verdict, maintaining a balanced portfolio with quality stocks and adequate cash reserves remains the prudent approach.
Stay informed, stay invested, and stay focused on long-term wealth creation.
FAQs: Market Today
Q1: Why is Sensex falling for 5 consecutive days? A: The primary reasons include US tariff threats on Russian oil buyers, persistent FII selling (Rs 3,367 crore on Thursday), rising crude oil prices, and rupee depreciation.
Q2: What is the next support level for Nifty? A: According to technical analysts, the next meaningful support lies at 25,700, which aligns with the December 2025 swing low.
Q3: Should I buy or sell in this market? A: Long-term investors can consider accumulating quality stocks at lower levels, while short-term traders should wait for clarity on US tariff policies and technical stability.
Q4: How are US tariffs affecting Indian markets? A: Potential 500% tariffs on countries buying Russian oil could significantly impact India’s crude import costs and overall economic growth, leading to market uncertainty.
Q5: When will the market recover? A: Recovery depends on clarity regarding US-India trade discussions, FII flow reversal, and the US Supreme Court’s verdict on tariff legality.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making investment decisions.
