Sensex slides over 300 points, nifty cracks as global tariff fears shake markets

Indian equities closed sharply lower on Friday. Global uncertainty drove the fall. Fresh tariff threats from US President Donald Trump triggered a risk-off wave. Consequently, investors cut exposure across sectors.

The Sensex dropped more than 300 points during the session. Meanwhile, the Nifty slipped below the key 25,600 mark. Traders stayed cautious from the opening bell. Selling dominated most of the day.

Global cues set the tone early. Trump warned of new tariffs on eight European nations. As a result, fears of a renewed US–EU trade clash resurfaced. Investors reacted quickly. They moved money toward safer assets like gold. Equity markets worldwide turned volatile.

Vinod Nair from Geojit Financial Services said the tariff warning revived trade dispute concerns. Therefore, riskier assets saw broad selling. He also pointed to continued foreign investor outflows from Indian markets. Although China showed some resilience due to export-led GDP growth, Indian sentiment remained weak.

At the same time, currency pressure added to the stress. The rupee weakened further against the dollar. That decline raised concerns over capital flows. Foreign institutional investors continued selling Indian stocks. Hence, markets struggled to find support.

Ponmudi R of Enrich Money said geopolitical tension and tariff fears unsettled investors all day. According to him, traders preferred caution over fresh positions. Weak currency and steady FII selling amplified the fall.

The Nifty reflected that pressure clearly. The index tried to hold earlier support levels. However, sellers overpowered buyers. Nifty broke below 25,600 — a zone that traders defended in recent sessions. It touched an intraday low near 25,494. Although the index attempted a recovery later, the bounce lacked strength. Eventually, it slipped back into the lower range.

Importantly, the earlier 26,000 level now acts as resistance. That zone aligns with the 100-EMA. Therefore, technical traders see limited upside unless strong buying emerges.

Rupak De of LKP Securities said the index stayed under bearish control. He noted that Nifty traded below the 20-EMA throughout the session. Every small rise attracted selling. In addition, the RSI remained in a bearish crossover and continued downward. The index closed at a multi-day low, which confirmed weak momentum.

Market fear also increased sharply. India VIX jumped during the day. That spike signaled rising uncertainty among traders. According to analysts, Nifty may drift toward 25,200 if volatility stays high. On the upside, resistance stands near 25,700.

Sectorally, most indices ended in the red. Banking and IT stocks led the losses. Metal shares also weakened due to global growth worries. Defensive sectors offered limited support. However, they failed to lift the broader market.

Looking ahead, experts expect stock-specific swings as earnings season continues. Companies with weak or mixed numbers may face sharper reactions. Moreover, global trade tension and foreign selling may keep pressure intact.

Therefore, markets may remain volatile in the near term. Until global clarity improves and domestic flows stabilize, traders may prefer a cautious strategy.