Sensex settles 600 pts lower, Nifty ends below 25,700: US tariff concerns among key factors behind market decline

Sensex today news: Sensex, Nifty see profit booking in trade.

• Sensex and Nifty fell for the fifth straight session amid US tariff concerns
• Foreign investors sold Rs 3,367 crore in equities, pressuring markets and rupee.
• ICICI Bank and Adani fell; ONGC and ETERNAL rose up to 3%.

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The benchmark equity indices Sensex and Nifty extended their losses for the fifth straight session on Friday amid renewed concerns over US tariffs and persistent foreign fund outflows.

After rebounding briefly in early trade, the Sensex fell 604.72 points or 0.72 percent to 83,576.24, while the broader Nifty declined to 25,683.30, down 193.55 points or 0.75 percent.

Market sentiment remained cautious following the sharp sell-off in the previous session as global trade-related uncertainties continued to weigh on investor confidence.

ICICI Bank, Adani Enterprises and Adani Ports and Special Economic Zone were among the major laggards in the Nifty50 pack, declining up to 2 percent, while ETERNAL and Oil & Natural Gas Corporation were the top gainers, rising up to 3 percent. Market breadth remained negative as about 863 shares advanced, 2919 shares declined and 127 shares unchanged.

Key factors behind market decline

1) Persistent FII selling: Foreign institutional investors offloaded equities worth Rs 3,367.12 crore on Thursday. This marked the fourth straight session of selling by FIIs after a brief pause on January 2.

2) Caution ahead of US ruling on tariffs: Investors are awaiting a US Supreme Court ruling on the legality of tariffs imposed by former US President Donald Trump. If the tariffs are declared illegal, the US government may be required to refund nearly USD 150 billion to importers.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said "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. There is a high probability of the verdict going against Trump. But the details are significant: that is, whether it would be a partial striking down of the tariffs or completely declaring the tariffs illegal. The market reaction would depend on the details. 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."

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3) Renewed tariff concerns: The benchmark indices have fallen sharply in recent sessions after Trump hinted at raising tariffs on Indian goods over New Delhi’s purchase of Russian crude. Over the last four sessions, the Sensex and Nifty have declined 1.8 percent and 1.7 percent, respectively.

Additionally, Trump has approved a sanctions bill that could impose 500 percent tariffs on countries purchasing Russian oil. US Senator Lindsey Graham said he had a "very productive meeting" with Trump at the White House during which the President approved the bipartisan Russia sanctions bill.

"This bill would give President Trump tremendous leverage against countries like China, India and Brazil to incentivise them to stop buying the cheap Russian oil," Graham said.

"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," said Ponmudi R, CEO of Enrich Money.

4) Rise in crude oil prices: Brent crude, the global oil benchmark, rose 0.53 percent to USD 62.32 a barrel. Higher crude prices tend to increase India’s import bill and inflation risks, which weigh on equities.

5) Rupee weakness: The rupee fell 7 paise to 89.97 against the US dollar in early trade on Friday amid sustained FII outflows and higher crude prices. At the interbank foreign exchange, the rupee opened at 88.88 before slipping further.

Forex traders said concerns over possible US tariffs and weak domestic equity markets led to continued selling by foreign investors, putting pressure on the local currency.

Technical outlook

Devarsh Vakil, Head of Prime Research at HDFC Securities, said the Nifty has breached key technical support levels.

"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. The next meaningful support level appears near 25,700, which coincides with the December 2025 swing low. On the upside, the 26,000–26,050 zone is expected to act as strong resistance in the near term," Vakil said.

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