Benchmark indices ended sharply lower on Friday amid rising global uncertainties and cautious investor sentiment. The S&P BSE Sensex fell by 585.67 points to settle at 80,599.91, while the NSE Nifty50 declined by 203 points to close at 24,565.35. This decline was driven by concerns over new US tariffs announced by President Donald Trump, combined with ongoing foreign institutional investor (FII) outflows and a mixed domestic earnings season.
Ajit Mishra, SVP at Religare Broking Ltd, noted that investor sentiment remains fragile due to mixed earnings and global headwinds. Vinod Nair from Geojit Financial Services echoed this view, highlighting that FIIs now hold their second-highest net short position in derivatives, suggesting elevated caution. He added that the global market mood had soured due to inflation fears in the US and worsening trade tensions.
Losses were broad-based across sectors, with Sun Pharma (-4.49%), Tata Steel (-3.04%), Maruti Suzuki (-2.65%), Tata Motors (-2.60%), and Infosys (-2.52%) being among the top losers on the Sensex. On the other hand, Trent gained 3.24%, followed by Asian Paints (1.40%), Hindustan Unilever (1.17%), ITC (1.14%), and Kotak Mahindra Bank (0.88%) as the top gainers.
Broader markets also witnessed selling pressure, with the Nifty Midcap100 down 1.33% and the Nifty Smallcap100 falling 1.66%. Volatility inched higher, with India VIX rising 3.74%, indicating increasing nervousness among investors.
Most sectoral indices closed in the red, led by sharp declines in Nifty Pharma (-3.33%), Nifty Metal (-1.97%), Nifty IT (-1.85%), and Nifty Realty (-1.78%). The only gainer was the Nifty FMCG index, which rose 0.69% on the back of strong valuations and defensive demand resilience.
Looking ahead, Ajit Mishra warned that the Nifty is approaching a crucial support level near 24,450. A break below this level could trigger further declines toward the 200-day EMA around 24,180. On the upside, resistance is expected in the 24,800–25,000 zone.
