Dalal Street Weekly Wrap: Sensex Falls 600 Points Amid Tariff Worries, Nifty Hits Two-Month Low

Analysts attributed the decline to a mix of factors, including the newly imposed 25% US tariff on Indian exports, persistent FII selling, and weakness in global markets.

Market sentiment swung between cautious optimism and defensive positioning before ultimately settling lower as FIIs continued to pull out funds.

Source : Freepik

Indian equity markets ended the week on a weak note, with the Sensex tumbling over 600 points and the Nifty slipping below the 24,600 level to hit a two-month low.

Analysts attributed the decline to a mix of factors, including the newly imposed 25 per cent US tariff on Indian exports, persistent foreign institutional investor (FII) selling, and weakness in global markets.

Tariffs weigh, FMCG shines

Market sentiment swung between cautious optimism and defensive positioning before ultimately settling lower as FIIs continued to pull out funds, reported IANS. Vinod Nair, Head of Research at Geojit Financial Services, noted, “With global headwinds, investors showed a preference for domestically driven stories with non-discretionary appeal, as broader sentiment turned selective.”

FMCG shares were the rare bright spot, buoyed by robust Q1 earnings from majors such as Hindustan Unilever (HUL), Dabur India, and Emami, helping the Nifty FMCG index climb nearly 1 per cent. By contrast, key sectors including auto, metals, IT, and pharma fell between 2–3 per cent as concerns about US trade actions deepened.

Bearish trend continues

While analysts believe the US tariffs may have limited direct impact on Indian markets — as key affected exports like gems & jewellery, leather, and textiles have little weight in listed equities — broader jitters linger. Experts suggest much of the tariff risk might already be factored in, making a steep correction less likely.

Technically, Nifty has now formed a bearish candle on both daily and weekly charts, marking lower lows for a fourth straight week. Motilal Oswal analysts warned that if the index stays below 24,600, it could slip further towards 24,442 and even 24,250, with resistance shifting to 24,800–24,950 levels.

Tech giant Tata Consultancy Services (TCS) dropped 5 per cent this week after announcing plans to lay off around 12,200 employees in FY26.

Meanwhile, global markets wobbled, with Asian, European, and US futures losing around 1 per cent after President Donald Trump signed an executive order on “reciprocal” tariffs on multiple countries, with rates from 10–41 per cent set to kick in within a week. While the move spurred fears of inflation and slower growth, the IMF’s latest World Economic Outlook offered a modest boost, revising its 2025 global growth forecast up to 3 per cent, increasing its April projection by 0.2 percentage points.