Indian stock market tumbles for 4th day; Nifty below 25,700 mark

Indian stock market ended lower for the fourth consecutive session with Nifty falling below 25,700 and Sensex down over 600 points. The rupee also weakened. Weak global cues and persistent FII outflows weighed on investor sentiment.

Indian stock market ended lower on the fourth consecutive session with Nifty falling below 25,700. The Sensex was down 604.72 points or 0.72% at 83,576.24, while the Nifty was down 193.55 points or 0.75% at 25,683.30.

Among the sector, PSU Banks, Oil & Gas, IT, PSE, and Metals remained strong footed, while weakness was seen in Realty, Private Banks, Financial Services, FMCG, and Consumer Durables.

Indian rupee ended lower by 14 paise at 90.16 per dollar on Friday against previous close of 90.02.

Market in Consolidation Phase

Vinod Nair, Head of Research, Geojit Investments Limited said, "The Indian market remains in a consolidation phase due to weak global cues, rising global bond yields, and persistent FII outflows, all of which weigh on sentiment ahead of the positive Q3 earnings outlook. Domestic risk-off sentiment has intensified amid uncertainty surrounding US-India tariff negotiations and escalating geopolitical tensions."

"Nevertheless, domestic GDP growth is expected to remain strong, and Q3 results should indicate a recovery led by midcaps, potentially stabilising investor sentiment. Despite these heightened geopolitical headwinds, the market is likely to trade within a range with a mixed bias," he added.

Expert Take on Market Pressure

Ponmudi R, CEO of Enrich Money, said, "Indian equity markets remained under sustained pressure throughout the week, weighed down by elevated global trade uncertainty following renewed tariff-related remarks from U.S. President Donald Trump. The possibility of higher import duties rekindled concerns over disruptions to global trade flows, dampening risk appetite across emerging markets, including India."

"Investors clearly adopted a risk-off stance, refraining from aggressive positioning, while defensive sectors offered only limited support. Overall sentiment stayed cautious, with market participants awaiting clearer signals on global policy direction and its broader economic impact."

Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities said, "The Nifty has slipped further, moving lower from the 50 EMA, indicating increasing weakness. Bouts of selling pressure dragged the index to close at a several-day low. Market sentiment appears decisively negative. In the short term, the trend might remain weak, with potential downside towards 25,550-25,500. On the higher end, resistance is placed at 25,850."

Macro Factors and Derivative Insights

Ashika Institutional Equities said, "On the macro front, market participants remained cautious ahead of the domestic inflation data for December, scheduled to be released on Monday. On global front Market participants stayed on the sidelines amid caution ahead of a US Supreme Court decision on the validity of American tariffs. Sentiment was further dented after US Commerce Secretary Howard Lutnick indicated on Friday that the India-US trade agreement had been delayed. On the derivatives front, market breadth remained negative with 36 advancing stocks against 176 declining stocks."

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)