Global equity markets faced a downturn as escalating tariffs from the U.S. create widespread uncertainty. The NSE Nifty 50 tumbled by 2.4% over the week, while the Sensex dropped by 2.7%. Investors are feeling the impact of these tariffs, leading to a notably bearish sentiment across major indices.
Weekly Market Performance
On Friday, the Nifty 50 closed at 22,904.45, down 346 points or 1.35%. The BSE Sensex followed suit, ending the session at 75,364.69, a decline of 930.67 points or 1.22%. This trend reflects a growing concern about the global economic landscape influenced by U.S. trade policies.
Sectoral Insights
Among the sectoral indices, Nifty Metal stocks were particularly hard-hit, plummeting 6.56% to 8,414.45. The Nifty Pharma index also faced challenges, decreasing by over 4% to 20,560.00. Continuing the trend, the Nifty IT index saw a decline of 3.6%, closing at 33,511.40.
- Nifty Bank slipped by 95 points or 0.18%, closing at 51,502.70.
- The BSE Midcap index fell by 3.08%, finishing at 40,508.53.
Broader Market Trends
In the wider market, small- and mid-cap stocks experienced significant selling pressure. The India VIX, a measure of market volatility, increased by 1.13% to 13.76, indicating rising investor anxiety.
The overall market breadth was unfavorable, with 2,947 stocks traded: only 646 advanced while 2,230 declined. Notable declines included:
- Tata Steel: -8.43%
- Hindalco: -8.07%
- ONGC: -7.07%
- Tata Motors: -5.94%
- Cipla: -5.29%
Conversely, Bajaj Finance, Tata Consumer Products, HDFC Bank, Apollo Hospitals, and Nestle India emerged as the top gainers amidst the market slump.
Expert Opinions on Market Trends
"The recent surge in U.S. tariffs has significantly impacted global markets, inciting a bearish trend as investors evaluate potential repercussions," stated Vinod Nair, Head of Research at Geojit Investments. He noted that while the direct effects on the Indian economy may be moderate compared to larger economies, they are still more pronounced than initially expected.
Looking ahead, market analysts predict that the Nifty will likely consolidate within the 23,000 – 23,650 range, with high volatility anticipated. According to Jatin Gedia, a Technical Research Analyst at Mirae Asset Sharekhan, support levels are critical at 23,150 – 23,100, while resistance lies between 23,550 – 23,600. A breakthrough above 23,600 could signal a potential rally towards the 24,000 – 24,200 mark.
Ajit Mishra, Senior Vice President of Research at Religare Broking, pointed out that the recent downturn in global markets, particularly in the U.S., combined with fresh concerns about tariffs on the pharmaceutical sector, has negatively affected market sentiment. However, the resilience observed in banking and financial stocks has somewhat cushioned the overall decline. He anticipates a time-wise correction in the Nifty index moving forward.
In summary, as tariff tensions escalate, investors should brace for continued market fluctuations while keeping an eye on key support and resistance levels.
