Sensex And Nifty Slip As Metal Stocks Lead Decline

Mumbai witnessed a weak start to the trading day on Friday, with major indices posting losses amid pressure on metal stocks. At 9:30 AM, the Sensex fell 525 points (0.64%) to 82,040, while the Nifty dropped 159 points (0.63%) to 25,259.

Broader market indices experienced heavier losses compared to the benchmarks. The Nifty Midcap 100 slipped 0.81 per cent, and the Nifty Smallcap 100 declined 1.19 per cent.

Among sectoral indices, metal stocks plunged 4.28 per cent, and IT stocks fell 1.41 per cent, while FMCG, pharma and consumer durables remained in positive territory.

Analysts identified immediate support levels at the 25,250–25,300 range, with resistance seen at 25,550–25,600, signalling limited room for recovery in the short term.

Market experts attributed the downturn to ongoing geopolitical tensions and the risk of tariff weaponisation by US President Donald Trump. Additionally, the spike in Brent crude towards $70 a barrel is expected to pressure industries reliant on oil and weigh on macroeconomic sentiment.

Despite these challenges, the Economic Survey’s optimistic projection of 6.8–7.2% GDP growth for FY27 provides some cushion.

Analysts expect 15–17% earnings growth, underlining potential resilience in the Indian markets. The upcoming India-EU trade deal is also likely to support export diversification and strengthen market sentiment from early 2027 onwards.

Mixed Trends in Global Markets

Asian equities opened mostly lower, with China’s Shanghai index down 1.19%, Shenzhen falling 0.96%, Japan’s Nikkei declining 0.35%, and Hong Kong’s Hang Seng Index losing 1.66%. South Korea’s Kospi gained 0.59%.

In the US, markets ended largely mixed overnight, with Nasdaq down 0.72%, S&P 500 easing 0.13%, and the Dow rising 0.11%.

Foreign institutional investors (FIIs) net sold equities worth Rs 394 crore, while domestic institutional investors (DIIs) bought equities worth Rs 2,634 crore, indicating domestic support amidst global volatility.

The trading day highlighted the sensitivity of Indian markets to metal sector weakness, crude price fluctuations, and international geopolitical developments, even as domestic economic fundamentals remain relatively strong.

Also Read: Economic Survey Forecasts India’s GDP Growth At 6.8-7.2% For FY27