Market registers worst fall in a month; metal, oil stocks drag Sensex, Nifty over 1%

Indian equities suffered their sharpest decline in a month on Thursday, extending losses for a fourth consecutive session as fresh concerns over India–U.S. trade relations weighed on investor sentiment. The sell-off was triggered by reports that the U.S. President Donald Trump-led administration could consider steep tariffs, as high as 500%, on certain Indian exports.

During the session, the Nifty50 and Sensex slipped as much as 1.07% and 1%, respectively. Over the past four sessions, the Sensex has declined nearly 1,600 points, while the Nifty has lost about 470 points.

“Domestic markets extended losses as sentiment turned cautious amid renewed concerns over U.S. tariffs and persistent FII outflows, overshadowing optimism around earnings growth. Broad-based selling was led by metals, oil & gas, and IT stocks,” said Vinod Nair, Head of Research, Geojit Investments.

The broader market witnessed sharp selling pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 indices plunging 1.96% and 1.99%, respectively.

Top gainers and losers

On the BSE Sensex pack, 26 out of 30 stocks ended in negative territory, led by Larsen & Toubro, which fell 3.35% to ₹4,028. Other top laggards included Tech Mahindra and TCS, which slid 2.94% and 2.74%, respectively.

Reliance Industries, the country’s most valuable stock, declined 2.25% to ₹1,470.30, while Tata Steel slipped 1.93% to ₹180.20. Other notable losers included Trent, Power Grid, and Infosys, each ending the session down between 1.5% and 1.75%, reflecting broad-based weakness across sectors.

On the other hand, Eternal (Zomato) led the gainers’ chart, rising 0.91% to close at ₹283.50, followed by ICICI Bank, which gained 0.48% to ₹1,435.35. Bajaj Finance edged up 0.29% to ₹7,197.80, while Bharat Electronics (BEL) ended marginally higher, up 0.01% at ₹415.65.

On the sectoral front, the Nifty Metal index was the worst performer, sliding over 3%, followed by Nifty Oil & Gas (down 2.8%), Nifty PSU Bank (down 2%) and Nifty IT (down 1.99%).

Venezuela-U.S. crisis drags metal, oil stocks

According to Nair of Geojit Investments, metal stocks declined on profit booking following a retreat in global prices, while oil and gas stocks fell amid worries over the Venezuela–U.S. crisis.

“In the near term, markets are expected to remain cautious and trade range-bound, influenced by Q3 earnings and developments on U.S. tariffs,” he said.

Ajit Mishra, SVP–Research, Religare Broking, said market sentiment deteriorated amid heightened geopolitical tensions and global trade-related concerns, which weighed on overall risk appetite. “Continued foreign institutional selling, coupled with weakness in the rupee, further added to the negative bias. With global cues remaining mixed and the earnings season approaching, trading activity remained cautious and largely stock-specific.”

Nifty ends below 50-day EMA

Sudeep Shah, head – technical and derivatives research, SBI Securities, said the decline was significant as the index broke down from its rising channel on the daily chart, signaling a shift in short-term momentum. “Notably, Nifty ended below its 50-day EMA for the first time since early October—a level that had previously acted as strong support on three separate occasions. Adding to the bearish undertone, the daily RSI also slipped below its rising channel, reinforcing weakness in momentum indicators.”

For Nifty, the zone of 25,750–25,700 will act as important support. A sustained move below 25,700 could trigger further correction toward 25,550. On the upside, 26,000–26,030 is likely to act as immediate resistance, he said.

 (DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)