Mumbai, Jan 8 Indian equity markets witnessed their sharpest fall in a month on Thursday as benchmark indices extended losses for the fourth straight session, weighed down by rising concerns over India–US trade tensions.
Investor sentiment turned cautious after reports suggested that the administration of US President Donald Trump could consider imposing steep tariffs of up to 500 per cent on Indian goods.
The possibility of such harsh trade measures triggered widespread selling across sectors, leading to broad-based risk aversion in the market.
The Nifty also ended lower at 25,876.85, down 263.9 points or 1.01 per cent.
“A sustained close below 25,900 increases the probability of further downside toward the 25,800–25,700 zone, while a recovery above 26,000 is essential to stabilise near-term sentiment,” an analyst said.
“Despite the current correction, the broader weekly and monthly trend structure remains positive, although short-term corrective pressure may persist if key supports fail to hold,” as per the expert.
On Sensex 30-packs, TCS, TechM, L&T, Reliance Industries and Tata Steel were among the top losers.
On the other hand, Eternal, ICICI Bank, Bajaj Finance, and BEL were the only gainers.
The selling pressure was even more pronounced in the broader market. Mid- and small-cap stocks saw sharp declines, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling nearly 2 per cent each.
Sector-wise, losses were widespread, with all indices ending in the red. Metal stocks bore the brunt of the sell-off as the Nifty Metal index dropped over 3 per cent.
Oil and gas stocks also remained under pressure, with the Nifty Oil and Gas index falling around 2.8 per cent.
PSU banking and IT stocks were among the other major laggards, declining about 2 per cent each.
Analysts said that the market mood remained cautious as investors grappled with global trade uncertainties and the potential impact of rising tariffs on India’s export-driven sectors.
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