Indian equities opened sharply lower on Friday, with the Sensex dropping over 600 points to around 82,956 and the Nifty sliding nearly 180 points to 25,516 by 10:04 am, as multiple headwinds weighed on sentiment.
A combination of escalating global tensions, weakness in index heavyweights, and continued foreign fund outflows dampened investor confidence right from the opening bell.
Global uncertainty and geopolitical risksMarkets worldwide are entering a volatile phase amid unsettling policy signals from the US. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, cautioned that volatility could persist as major geopolitical and geoeconomic developments unfold. He noted that uncertainty around President Donald Trump’s trade policies, including the possibility of steep tariffs on European nations, could trigger retaliatory actions and potentially spark a broader trade war, which would be negative for global markets.
Pressure from heavyweight stocksDisappointing third-quarter earnings from large-cap stocks such as Reliance Industries and ICICI Bank dragged benchmark indices lower. The weakness extended across financials and domestic cyclical stocks, deepening early losses.
Sustained foreign investor sellingForeign portfolio investors continued to pare exposure to Indian equities, adding to market pressure. A weakening rupee and a global risk-off environment have intensified selling. Ponmudi R, CEO of Enrich Money, said the cautious start reflected domestic consolidation, pre-Budget positioning, and mixed global cues, with FPI outflows keeping sentiment subdued.
Rising volatility and key technical levelsMarket volatility has been steadily rising, prompting traders to brace for sharp moves. Anand James, Chief Market Strategist at Geojit Financial Services, said 26,020 remains a near-term upside target for the Nifty, but warned that a rising VIX points to the likelihood of sharp swings. He added that a break below 25,600 could pull the index toward its 200-day simple moving average at 25,090, while immediate support lies near 25,500.
At present, the Nifty is trading in a sideways range between 25,500 and 25,900 and remains below its 20-day and 50-day moving averages, indicating subdued short-term momentum.
