Dalal Street’s losing streak showed no signs of easing on Friday as global trade concerns continued to weigh heavily on investor sentiment. Around 11:55 am, the Sensex was down nearly 450 points, while the Nifty 50 slipped over 130 points, pushing Indian equities deeper into the red after a bruising week.
The sell-off was triggered by heightened anxiety over a sweeping sanctions bill approved by former US President Donald Trump, which includes provisions for imposing tariffs of up to 500% on countries importing large quantities of Russian oil and gas. For India, the threat has proved particularly destabilising due to its strong energy ties with Russia and uncertainty over how aggressively such measures could be enforced.
The market decline has been broad-based, with selling pressure extending even to sectors with limited direct exposure to global trade. What began as a sharp correction has increasingly taken the form of risk aversion, as investors reduce exposure and move to the sidelines amid geopolitical uncertainty.
According to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, investor focus has now shifted to the US Supreme Court, which is expected to rule on the legality of Trump-era tariffs.
“There is a high probability that the verdict could go against Trump, but the details will matter,” Vijayakumar said. “A complete rejection of the tariffs could trigger a relief rally in Indian equities, given that India has been among the worst affected by the proposed measures.”
Until clarity emerges, uncertainty is likely to dominate trading on Dalal Street.
Market experts note that foreign institutional investor selling, weekly derivatives expiry, and sharp weakness in metal stocks have intensified the recent fall. However, from a technical standpoint, the market has not yet broken down decisively.
The Nifty continues to trade above its 55-day exponential moving average, a key support level. As long as the index holds above the 25,850 zone, buying interest could emerge at lower levels. If this support remains intact, Nifty may gradually move back toward the 26,200–26,300 range.
A decisive break below 25,800, however, could open the door to a deeper correction. Bank Nifty remains weak, showing a sell-on-rallies bias, with heavyweight banking stocks struggling to regain momentum.
Analysts believe the current sell-off may be punishing stocks indiscriminately. Sectors such as financials, consumer discretionary, and industrials have weakened largely due to sentiment rather than a deterioration in fundamentals.
For long-term investors, experts suggest this phase could offer selective accumulation opportunities in quality stocks rather than triggering panic-driven exits. However, aggressive buying is not advised until global trade clarity improves.
With geopolitics driving near-term moves, volatility is expected to persist. Unless key technical supports break decisively, analysts view the current phase as a stress test driven by global uncertainty rather than the start of a structural market breakdown.
