India’s stock market faced a significant decline, marking its worst session in four days as banking, infrastructure, and IT stocks saw heavy selling due to fresh worries about US trade policies. The Nifty index closed 1.12% lower at 25,424.65, while the Sensex ended down by 1.28% at 82,225.92. Analysts highlighted that the 25,500–25,600 zone is a critical resistance level for the Nifty, with potential short-covering if breached.
Market sentiment turned negative following US President Donald Trump’s tariff threats, sparking concerns about escalating trade tensions globally. Trump’s announcement of new temporary global tariffs and warnings against reneging on trade deals added to the unease. The US Supreme Court’s ruling against Trump’s previous tariffs further contributed to market uncertainty, affecting investor confidence in India as well.
The IT sector bore the brunt of the market slump, with the Nifty IT index plummeting by 4.74% to close at 30,053.50, hitting a two-year low during the day. Global market trends and apprehensions about US tech expenditure exerted pressure on the sector. In contrast, the Nifty Metal index managed to perform better than the overall market, while real estate stocks suffered a 2.54% decline.
Despite the benchmark indices’ sharp fall, broader markets displayed some resilience, with the Nifty MidCap index closing 0.32% lower and the Nifty SmallCap index dropping by 0.55%. Analysts, including Christopher Wood from Jefferies, expressed concerns about the potential scrutiny on AI-driven trading in the face of slowing global growth and escalating trade tensions. They anticipate continued market volatility in the near future due to rising global uncertainties and cautious investor sentiment.
