Sensex Tanks Over 600 Points; Nifty Dips Below 25,520 on Global and Domestic Headwinds.
Indian equities opened Friday on a weak note, with the Sensex plunging more than 600 points to 82,956 and the Nifty sliding nearly 180 points to 25,516 by 10:04 am. A mix of global uncertainty, weak earnings from heavyweights, and continued foreign selling weighed on investor sentiment.
1. Geopolitical Tensions and Global Uncertainty
Markets are bracing for turbulence amid volatile US policy signals.
“It’s going to be volatile days ahead with big geopolitical and geoeconomic developments impacting markets,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “If the US imposes 10% tariffs on eight European countries from February 1 and raises them to 25% in June, retaliation is almost certain, sparking a broader trade war — negative for markets globally.”
He added that President Trump’s unpredictability could also lead to last-minute policy softening.
2. Weak Q3 Numbers from Large-Cap Names
Disappointing earnings from Reliance Industries and ICICI Bank dragged the benchmarks lower. The weakness spread across financials and domestic cyclical stocks, contributing to the sharp early slide.
3. Persistent Foreign Investor Selling
Foreign portfolio investors (FPIs) continued pulling money out of Indian equities, keeping pressure on markets. The soft rupee and risk-averse global mood amplified the outflows.
“Domestic consolidation, pre-Budget positioning, and mixed global cues are shaping the cautious open. FPI weakness and the soft rupee are keeping overall sentiment guarded,” said Ponmudi R, CEO of Enrich Money.
4. Rising Volatility and Key Nifty Levels
Market volatility has been rising, prompting traders to watch key levels closely.
Anand James, Chief Market Strategist at Geojit, said, “Near-term upside for Nifty is around 26,020, but the rising VIX signals potential for wild swings. Slippage below 25,600 could drag the index toward the 200-day SMA at 25,090, while support remains near 25,500.”
Currently, the Nifty is consolidating between 25,500 and 25,900, trading below its 20-day and 50-day moving averages, indicating muted short-term momentum.
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