Stock markets faced a downturn on Friday, with the NSE benchmark Nifty50 dropping below the 26,000 mark and the BSE Sensex declining by over 400 points. By midday, Nifty50 had decreased by 130 points, or 0.50%, settling at 25,746, while the Sensex fell by 433 points to 83,747. This decline was attributed to concerns over potential 500% tariffs on Russian crude imports and ongoing foreign portfolio investor (FPI) outflows. Market experts indicate that as investors prepare for the upcoming earnings season, the indices may stabilize at current levels.
Market Overview and Investor Sentiment
The Indian stock market opened lower on Friday, reflecting increasing anxiety among investors. The potential for the United States to impose substantial tariffs on countries importing Russian crude has added to this uncertainty. Heavy outflows from foreign portfolio investors have further stressed the market. In January alone, FPIs sold around $900 million worth of Indian shares, following a record outflow of $19 billion in 2025. This trend has contributed to a decline of 1.7% in Nifty and 1.8% in Sensex over the past four sessions. Analysts believe the Indian markets are currently oversold, suggesting a possible recovery soon.
Ajay Bagga, a banking and market expert, remarked that after several consecutive days of losses, the Indian markets might aim to consolidate and stabilize. He pointed out that the recent declines could lead to a rebound as investors review their positions ahead of the earnings season, with upcoming financial reports expected to provide key insights into the market’s direction.
Top Gainers and Losers on Nifty50
Despite the overall market decline, a number of stocks performed well on the Nifty50 index. Eternal led with a gain of 1.79%, followed by HCL Tech at 1.29% and Asian Paints at 1.17%. Other notable gainers included BEL, ONGC, and JSW Steel, all seeing increases between 1.03% to 1.16%. Conversely, the Nifty50 also experienced significant losses, with ICICI Bank dropping by 2.17%, Adani Enterprises by 1.85%, and Adani Ports SEZ by 1.80%. Other major losers included Max Healthcare, UltraTech Cement, and NTPC, each recording declines of over 1%.
This mixed performance among individual stocks underlines the market’s volatility. Investors are closely watching these fluctuations as they navigate the uncertain economic landscape.
Key Developments Impacting Market Sentiment
Global market sentiment is likely to be influenced by two key developments later in the day: the release of the US jobs report and a ruling from the US Supreme Court concerning the legality of tariffs imposed during the Trump administration. The employment data is expected to show an addition of around 70,000 jobs in December, potentially offering insights into the health of the US economy.
Additionally, the Supreme Court’s decision is under close scrutiny by investors. A ruling that invalidates the Trump-era tariffs could result in the refund of duties already collected, which may significantly impact US government finances, estimated at $150 billion. Investors are eager to see how the Trump administration may respond and whether it will attempt to reimpose tariffs through alternative legislative measures.
As the day unfolds, market participants will remain vigilant in assessing how these developments may affect both domestic and global markets.
Digihunt is not a financial advisor and this is not investment advice.