Sensex, Nifty slide for fourth session on tariff worries and FII selling

Indian equity benchmarks extended their losing streak for a fourth consecutive session on Thursday, weighed down by broad-based selling amid renewed tariff concerns linked to comments by US President Donald Trump and continued outflows by foreign institutional investors (FIIs).

Around midday, the Sensex was down 713.82 points, or 0.84 per cent, at 84,247.32, while the Nifty slipped below its 50-day moving average to 25,889.65, a decline of 251.10 points, or 0.96 per cent. All sectoral indices were trading in the red, with metal, oil and gas stocks leading the losses.

Heavyweights such as Tata Consultancy Services, Hindalco Industries and JSW Steel were among the top laggards on the Nifty 50, falling up to 2 per cent. In contrast, ETERNAL and Adani Ports and Special Economic Zone managed modest gains of up to 1 per cent. Market breadth remained weak, with decliners significantly outnumbering advancers.

Analysts pointed to multiple factors behind the sustained pressure on equities. FIIs sold shares worth Rs 1,527.71 crore on Wednesday, extending their selling streak to a third session after a brief pause earlier in the month. So far in January, foreign investors have offloaded equities worth around Rs 5,760 crore, following heavy outflows through 2025.

Moneycontrol reported that Thursday’s weekly expiry of Sensex derivatives also added to volatility, as traders unwound or rolled over positions, pushing up volumes and intraday swings.

Global cues remained unsupportive, with most Asian markets trading lower. Japan’s Nikkei 225 and Hong Kong’s Hang Seng were in negative territory, while US equities closed mostly lower overnight. Analysts at Motilal Oswal Financial Services said persistent geopolitical and trade-related risks were fuelling risk aversion, adding that clarity on a long-pending India–US trade deal could act as a catalyst for an upside move.

Rising crude oil prices further dented sentiment. Brent crude rose 0.4 per cent to USD 60.20 per barrel, a negative development for India, which relies heavily on imported oil.

Trade-related concerns also resurfaced after Trump backed a bipartisan sanctions bill proposing tariffs of up to 500 per cent on countries continuing to buy Russian oil. Export-oriented stocks, particularly in textiles and seafood, came under pressure amid fears of higher trade barriers.

The Nifty has fallen about 0.7 per cent over the past three sessions, while the Sensex has lost nearly 0.9 per cent, as investors reacted to the risk of steeper US tariffs on Indian goods.

VK Vijayakumar, chief investment strategist at Geojit Investments, said uncertainty over the India–US trade agreement and persistent FII selling were weighing heavily on markets, despite India’s otherwise strong growth prospects.

Investor nervousness was also reflected in the India VIX, which jumped nearly 9 per cent to 10.83, signalling elevated uncertainty.

Metal stocks extended losses for a second session after a recent rally, with prices of copper, aluminium, gold and silver retreating as investors booked profits at higher levels.

From a technical perspective, analysts said the broader trend remained constructive despite the near-term weakness. Devarsh Vakil, head of prime research at HDFC Securities, said the market continued to form higher tops and higher bottoms on daily charts, with 26,373 acting as an immediate resistance for the Nifty and the 26,000 level expected to provide strong near-term support.

With agency inputs