Sensex, Nifty Tumble for Third Straight Session as Global Trade Fears Weigh on Market
Market benchmarks slide amid fiscal anxiety, global tariff cues; Nifty eyes 24,430 as key support
Mumbai: Indian equities ended sharply lower on Tuesday, continuing their slide for a third consecutive session, as concerns over international trade policies and growing fiscal anxieties abroad weighed heavily on investor sentiment.
The BSE Sensex shed 636 points, closing at 80,737.51, while the Nifty 50 gave up 174 points, settling at 24,542.50. The tone was subdued across sectors, with few exceptions.
Day opens steady, but sentiment fades
Trading began on a tentative but positive note, driven in part by mixed signals from global markets overnight. However, as the day progressed, selling pressure intensified. Market participants cited a mix of external risks — notably around tariffs and policy tightening — that continue to dominate the mood.
“We’re seeing markets behave more erratically, and that’s largely because the drivers are no longer earnings or data but policy headlines,” said Ajay Bagga, an independent market expert, during a conversation with ANI. “Fiscal imbalances, tensions globally, and tariff-related noises have made market direction difficult to call.”
U.S. trade policy under scrutiny
Adding to the pressure, remarks tied to Donald Trump’s earlier tariff approach — and what could potentially lie ahead if he returns to office — are making investors uneasy. Some fear a reintroduction of tougher trade restrictions could hurt global flows.
“Trump’s tariff playbook led to global softening the last time, and now with election chatter heating up, those concerns are coming back to the fore,” said VLA Ambala, Co-Founder of Stock Market Today. She noted that India’s export numbers, GDP momentum, and smaller companies are showing signs of strain.
“There’s no way to detach from the global economy anymore,” Ambala said. “What happens in Washington finds its way here — and we’re seeing that show up in the numbers and the charts.”
Nifty’s chart sends a warning
Technical analysts are keeping a close watch on the 24,500 zone on the Nifty 50, which has repeatedly acted as a short-term floor. On Tuesday, the index formed what is known as a bearish engulfing pattern, often interpreted as a caution signal.
Dr Praveen Dwarakanath, Vice President at Hedged.in, noted that Nifty’s ability to hold above that threshold will be tested again on Wednesday. “Intraday we saw some buying off the 24,500 mark, but that doesn’t negate the weakness. That level is being defended, but how long that holds is the question.”
The Relative Strength Index (RSI) on the index dropped to 50, a neutral range, though the drop of nearly 4% suggests a notable loss of short-term momentum.
Ambala added that traders are now eyeing 24,430 as the next potential pivot. “That’s the zone to watch. If Nifty breaks below that, we’re looking at further pressure. If it holds, some bounce can’t be ruled out.”
Sectoral picture: mostly red, except realty
Losses were broad-based, affecting most pockets of the market. Banking, capital goods, IT, consumer durables, oil & gas, and power stocks ended in the red. Both private banks and PSU banks were down around 0.5% to 1%.
The only notable gainer was the real estate pack, which rose around 1%. Some analysts attributed the gains to continued optimism in the housing segment, particularly in tier-one cities. “There’s traction in sales, especially in the mid-income bracket,” a fund manager with a domestic brokerage said. “That’s giving some realty names a leg up.”
What comes next?
With no major domestic data expected this week, traders say the market will remain tethered to global headlines — particularly those coming out of the U.S. Comments from Federal Reserve officials and tariff-related policy noise could be key drivers in the sessions ahead.
Foreign institutional investors, who have turned net sellers in recent days, remain a swing factor. Any pickup in outflows could add further pressure, especially in rate-sensitive sectors.
Technical traders will be watching Wednesday’s open closely. If the Nifty 50 manages to stay above 24,430, it could indicate short-term stability. But if that floor gives way, some expect deeper cuts in the near term.
“Right now, the market’s lacking conviction,” said a technical strategist at a brokerage firm. “You’ve got policy risk, fragile global cues, and no real catalyst locally. It’s a wait-and-watch phase — with a defensive stance.”
Source: ANI
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Nikhil Singh Sumal is a self-taught entrepreneur, investor, and CMO at Growth Jet Media. He brings all-round expertise in branding, startups, and digital growth. At Hindustan Herald, he decodes business trends and marketing strategy with clarity, sharp insight, and a forward-thinking perspective.
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- Nikhil Singh Sumalhttps://hindustanherald.com/authors/nikhil/
