Indian equities started Friday on the back foot, with the Sensex plunging over 600 points to around 82,956 and the Nifty sliding nearly 180 points to 25,516 by 10:04 am.
A mix of global tension, weak heavyweights, and sustained foreign selling hit investor sentiment right at the open.
Geopolitical tensions, rising global uncertainty
Global markets are bracing for a turbulent phase as policy signals from the US continue to rattle investors.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said volatility is likely to remain elevated across global markets:
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“It’s going to be volatile days ahead with big geopolitical and geoeconomic developments impacting markets. We don’t know how President Trump’s disruptive policies will impact international trade. If the US goes ahead with 10% tariffs on eight European countries from February 1 and raises them to 25% in June, retaliation is almost certain.”
He added that such a scenario could spark a broader trade war that would be “negative for markets globally,” though he also noted that Trump “chickens out at times” and may soften his stance.
Weak Q3 numbers from index heavyweights
Muted earnings from large-cap names like Reliance Industries and ICICI Bank dragged the benchmarks lower. The pressure spilled across financials and domestic cyclical stocks, contributing to the early slide.
Persistent foreign investor selling
Foreign portfolio investors continue to pull money out of Indian equities, keeping the market under pressure. The weak rupee and global risk-off mood are amplifying the selling.
Ponmudi R, CEO of Enrich Money, said the market’s cautious open was shaped by “domestic consolidation, pre-Budget positioning and mixed global cues,” adding that FPI weakness and the soft rupee “are keeping overall sentiment guarded.”
Rising volatility and key Nifty levels to watch
Market volatility has been inching up, and traders are increasingly wary of sharp swings.
Anand James, Chief Market Strategist at Geojit Financial Services, pointed to 26,020 as the near-term upside objective for Nifty, but warned that the steady uptick in VIX suggests the possibility of “wild swings.”
He added that slippage below 25,600 could drag the index toward the 200-day SMA at 25,090, while support remains firm near 25,500.
Currently, Nifty is trading in a sideways pattern, consolidating between 25,500 and 25,900. It remains below its 20-day and 50-day moving averages, signalling muted short-term momentum.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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