Analysts expect near-term volatility as global tariff developments, GST decisions, and domestic macro signals shape investor sentiment. For now, FMCG and infrastructure-linked plays remain the bright spots in an otherwise cautious market.
BIZ DESK
Indian equity benchmarks slipped on Friday as investors turned risk-averse amid worries over the impact of US tariffs on global trade. Heavy selling in Reliance Industries and other index majors dragged markets into the red after a flat opening.
The Sensex closed 270.92 points lower (–0.34%) at 79,809.65, after touching an intra-day low of 79,741.76. The 30-share index had opened at 80,010.83 against the previous close of 80,080.57. The Nifty fell 74.05 points (–0.30%) to settle at 24,426.85.
Investor Sentiment
“Caution dominated trade as investors assessed the implications of US tariffs, which could undermine the competitiveness of India’s exports. Valuation concerns in mid- and small-caps also weighed on sentiment, although FMCG stocks offered support,” said Vinod Nair, Head of Research, Geojit Financial Services.
Sector-Wise Performance
Markets displayed mixed performance across sectors:
- Nifty Auto: –0.88% as Mahindra & Mahindra and Tata Motors slipped.
- Nifty IT: –0.87% as Infosys and Tech Mahindra weakened.
- Nifty Bank: –0.31% with Axis Bank and HDFC Bank in the red.
- Nifty Financial Services: –0.28% amid cautious outlook on credit growth.
- Nifty FMCG: +0.95%, outperforming on expectations of GST rate rationalisation and steady consumer demand, with ITC and HUL leading gains.
- Metals and Infrastructure: L&T, Tata Steel, and BEL provided some cushion with modest advances.
Top Movers
Among Sensex constituents, Reliance Industries, Infosys, Mahindra & Mahindra, Tata Motors, NTPC, Tech Mahindra, Titan, Axis Bank, and HDFC Bank closed lower. Gains in ITC, BEL, L&T, Tata Steel, Power Grid, Sun Pharma, and HCL Tech helped limit losses.
Broader Markets
The pressure was visible beyond benchmarks:
- Nifty Midcap 100: –0.57%
- Nifty Smallcap 100: –0.39%
- Nifty 100: –0.30%
Analysts pointed to stretched valuations and selective profit-taking as factors behind the broader market underperformance.
Currency Pressure
Adding to investor unease, the rupee fell to a record low of 88.20 against the US dollar, down 0.70% amid heavy selling pressure triggered by the tariff announcement.
“The widening fiscal deficit could worsen the strain on the currency. While the upcoming GST Council meeting may provide some respite, traders are likely to remain defensive until clarity on tax rates emerges. We expect the rupee to trade in the 87.65–88.45 range,” said Jateen Trivedi, VP Research, LKP Securities.
Outlook
Analysts expect near-term volatility as global tariff developments, GST decisions, and domestic macro signals shape investor sentiment. For now, FMCG and infrastructure-linked plays remain the bright spots in an otherwise cautious market.