Markets slip as Sensex drops 300 points from day’s high and Nifty falls below 25,850
Indian equity markets reversed early gains as the Sensex fell 300 points from the day’s high and the Nifty slipped below the 25,850 mark. Concerns over potential US tariff actions, along with profit booking in heavyweight stocks and weak global cues, weighed on investor sentiment.
Domestic stock markets closed lower after failing to hold on to early gains, with benchmarks slipping steadily through the session. The Sensex dropped around 300 points from the intraday high, while the Nifty breached the 25,850 level, reflecting a cautious mood among investors.
Market participants cited renewed concerns over possible US tariff measures as a key trigger for the decline. Uncertainty around global trade policy led to risk aversion, particularly in export oriented sectors. This was compounded by profit booking in select large cap stocks after recent rallies.
Heavyweight stocks came under selling pressure, dragging the broader indices lower. Banking and IT shares saw mixed movement, while metal and auto stocks faced weakness amid worries about global demand. The lack of strong sectoral leadership made it difficult for markets to recover during the session.
Global cues remained subdued, with Asian markets trading mixed and investors keeping a close watch on developments in the US. Rising bond yields and uncertainty around the global economic outlook added to the cautious tone.
Broader markets also reflected weakness, with mid cap and small cap stocks seeing mild losses. Market breadth tilted negative, indicating selling pressure across a wider set of stocks rather than being limited to a few names.
Analysts said the near term market direction will depend on clarity around global trade issues, movements in US interest rates and foreign investor activity. Domestic factors such as corporate earnings updates and macroeconomic data will also influence sentiment.
Despite the day’s decline, experts noted that the overall structure of the market remains intact. However, they advised investors to stay selective, focus on fundamentally strong stocks and be prepared for short term volatility as global uncertainties continue to influence market movements.
About the Author
