Business

Sensex And Nifty Slide About 2.5% This Week Over Global Uncertainty

Indian equity benchmarks ended the week with losses of around 2.5 per cent, as persistent global uncertainties continued to unsettle investors.

Over five trading sessions, both the Sensex and Nifty remained under pressure amid unresolved US‑India tariff talks and escalating geopolitical tensions.

Profit‑booking in key sectors such as autos, metals, and oil and gas contributed to the downturn, while selective buying in consumer durables, driven by hopes of renewed demand, offered only a brief respite.

Nifty dipped 2.45 per cent for the week and slid 0.75 per cent on the final trading day to close at 25,638 points. Meanwhile, the Sensex fell 604 points or 0.72 per cent to finish at 83,576, ending the week down 2.55 per cent overall.

Analysts noted that the Bank Nifty formed a dark cloud cover pattern on the weekly chart, a bearish signal pointing to selling pressure at higher levels.

Domestic markets adopted a risk‑off stance as concerns grew over potential US trade measures linked to Russia‑related sanctions and other international developments, analysts said.

Investors also reacted nervously to global developments, including the Venezuela-US standoff, rising concerns over Russian oil imports, and China’s restrictions on rare earth exports, all of which weakened market sentiment.

Foreign institutional investors (FIIs) also continued to show caution, compounding pressure on the markets.

Broader Market Trends and Outlook

The broader market reflected the weakness seen in the benchmark indices. The Nifty Midcap100 declined 2.64 per cent, while the Nifty Smallcap100 slipped 3.08 per cent over the week.

Investors are now focusing on key third‑quarter FY26 IT companies, which will release their earnings in the coming week.

Meanwhile, markets are also awaiting a crucial legal ruling on the US President’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad global tariffs, including a proposed 10 per cent base levy and higher reciprocal duties on major trading partners.

Analysts suggest that volatility is likely to persist in the near term, particularly for US‑exposed companies and sectors such as metals and oil and gas.

Overall, markets are expected to remain range‑bound with a mixed bias, balancing external risks with domestic fundamentals.

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Geetanjali Mishra

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