Business
D-Street sees worst week since September 2025 amid tariff fears, FPI selling
The NSE Nifty fell 193.55 points, or 0.8%, at 25,683.30. The BSE Sensex ended at 83,576.24, a decline of 604.72 points or 0.7%.
The retreat came after both indices had hit all-time highs on Monday on persistent overseas selling and concerns over Donald Trump’s support for a bill that advocates 500% tariffs on imports from countries, such as India and China, which purchase Russian oil.
The fresh tariff threats have dashed expectations of an imminent India-US trade deal, which was seen as crucial for a rebound in Indian-listed risk assets.
“While he may or may not impose the tariffs, it implies that India doesn’t have a deal with the US yet, which is bound to have economic impact,” said Rohit Srivastava, founder, Indiacharts.com. “When the 50% tariffs were imposed, Indian traders already had festive orders, but now the manufacturing sector could feel the heat of the existing tariffs as the festive season is behind us.”
Foreign portfolio investors (FPI) sold shares worth Rs 3,769 crore on Friday, while domestic institutions bought Rs 5,596 crore. FPIs have offloaded Rs 10,968 crore so far in January.
Srivastava said that foreign investors remained short on index futures, despite Nifty’s recovery last week, signalling their bearish stance.Investors are awaiting the US Supreme Court’s expected verdict after trading hours in Mumbai. The ruling would determine whether Trump can impose tariffs without the approval of Congress. If the verdict goes against Trump, there could be a short-term rebound.
Knee-jerk reaction expected
“Depending on the Supreme Court order on tariffs, there could be a knee-jerk reaction in the next few sessions, but Nifty is expected to languish until March as seasonality plays out,” said Srivastava.
Elsewhere in Asia, Japan gained 1.6% while China and South Korea rose 0.9% and 0.8%, respectively. Hong Kong advanced 0.3% but Taiwan ended 0.2% lower. At home, technical indicators are pointing to oversold markets but any recovery could be short-lived, said analysts.
“Nifty witnessed a Double Top formation breakdown, which is typically negative and indicates a ‘sell on rise’ market till it crosses above 26,000 levels, which seems unlikely in the near term,” said Vipin Kumar, AVP Equity Research & PMS (Derivatives & Technical Analyst), Globe Capital Market. “The 200 DEMA placed at 25,200 levels will act as strong support, going forward.”
Brent crude futures rose 0.9% to $62.4 a barrel. Volatility ticked higher, with the Volatility Index (VIX) climbing 3.1% to 10.9.
