Nifty falls to 25,450, Sensex sheds 350 points as trade jitters, FII selling test key supports; geopolitics keeps sentiment fragile

Share Market Today: Sensex, Nifty Update

• Sensex and Nifty dropped 0.5% in early trade due to global trade-war concerns.
• Market breadth was negative, with declines surpassing advances by over 2:1.
• India VIX up 3%; analysts predict ongoing market volatility

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Indian equity benchmarks indices opened sharply lower on Tuesday, with the Sensex and Nifty slipping about 0.5 percent in early trade as renewed global trade-war jitters, persistent foreign fund outflows and weak Asian cues weighed on sentiment. The Nifty slipped to near 25,450 mark intraday, intensifying focus on whether key support levels can hold amid a risk-off backdrop.

At around 09:40 am, the Sensex was down about 0.4 percent near 82,900, while the Nifty fell close to 0.5 percent to around 25,460. Market breadth was decisively negative, with declines outnumbering advances by more than two-to-one, signalling broad-based selling pressure. Volatility edged higher, with India VIX rising over 3 percent, reflecting elevated nervousness.

The weak opening follows a subdued close on Monday, when benchmarks recovered from intraday lows but still ended lower amid profit booking. Technical analysts flag the 25,450-25,400 zone as the immediate support for the Nifty; a decisive break below this band could open the door to a deeper correction, while any rebound is likely to face resistance near 25,700-25,750. “The volatility in the market is likely to continue in the near-term till some clarity emerges regarding the US-Europe standoff on Greenland tariffs,” said VK Vijayakumar, chief investment strategist at Geojit Investments, adding that geopolitical and geoeconomic developments will continue to influence market direction.

Sectorally, selling pressure was visible across realty, IT, auto and oil & gas stocks, while select defensive names offered limited support. Midcap and smallcap indices underperformed the benchmarks, underscoring a cautious risk appetite despite domestic institutional buying.

Global cues remained unsupportive. Asian markets traded lower amid rising bond yields in Japan and fresh tariff threats from the US, while US markets were shut overnight for the Martin Luther King Jr. Day holiday. Crude oil prices edged higher on optimism over China’s growth outlook, adding to inflation and margin concerns for domestic markets.

Institutional flows remain a key overhang. Foreign institutional investors extended their selling streak on Monday, offloading shares worth over Rs 3,200 crore, even as domestic institutions continued to buy, providing some cushion.

With earnings cues mixed and geopolitical uncertainty lingering, analysts say they expect markets to remain volatile and range-bound in the near term, while investors are likely to stay selective.

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