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India Stocks Tumble on US Tariff Fears
8 Jan
Summary
- Sensex plunged 800 points amid renewed US tariff concerns.
- Nifty broke crucial technical levels, falling below 25,900.
- Foreign investors have already pulled over Rs 1,600 crore this year.
Indian equity markets experienced a significant downturn, with the Sensex dropping nearly 800 points and the Nifty 50 falling below key technical support levels. This marks the fourth consecutive session of losses, driven by renewed concerns over potential US tariff actions and broader geopolitical tensions. The Nifty's breach below its 50-day exponential moving average is viewed as a negative short-term signal.
The immediate catalyst for the sell-off appears to be a US Senate bill proposing substantial tariffs on Russian imports, which could extend to countries like India if they continue purchasing Russian oil. This development revives fears of trade disruptions, impacting investor sentiment. Foreign institutional investors have continued their selling spree, with outflows exceeding Rs 1,600 crore in the new year.
Despite the current volatility, analysts suggest that India's long-term economic fundamentals remain robust, supported by strong GDP growth estimates for FY26. However, near-term caution is advised as markets navigate geopolitical uncertainties, tariff threats, and upcoming earnings reports. Key support for the Nifty is seen around the 25,700-25,750 zone.
