Mumbai: The Indian stock market recorded downfall for the fifth consecutive day on Friday. Both Sensex and Nifty witnessed strong selling. The constant selling of foreign investors, geo-political tension and the vigilance of investors before the quarterly results have weakened the market sentiment. During trading, the Sensex lost more than 600 points to reach a low of 83,552.66. At the same time, the Nifty 50 plunged 190 points to 25,684.85.
The BSE Midcap and Smallcap indices declined by more than one percent. In the last five trading sessions, the Sensex has lost more than 2000 points, while Nifty 50 plummeted by about 2.3 percent. Investors have lost about Rs 11 lakh crore in this week.
Source-TradingView
All eyes on US Supreme Court’s ruling on Tariffs
Investors’ eyes are on the decision of the US Supreme Court. The court will announce the verdict on Trump’s Liberation Day tariff case on Friday 9. If the court decides against Trump, it can provide relief to the market. But if the decision comes in their favour, the market’s anxiety may increase, because this may open the way for them to impose more stringent tariffs.
500% percent tariff threat
Apart from the decision of the Supreme Court, investors are also fearing the new tariffs in the US. On 7 January, Republican Senator Lindsey Graham said that Trump supported the bill relating to sanctions on Russia. This could increase US tariffs by 500 percent on countries that buy oil from Russia.
Investors cautious ahead of Q3 results
At the domestic level, investors are eyeing the quarterly results of companies. Retail sector giant DMart will release the results for the December quarter on Saturday. At the same time, major IT sector companies TCS and HCL Tech will announce their results on Monday. The market is expected to recover from the third quarter after several quarters of weak earnings. However, if the results are not as expected, it can prove to be a big blow to the market and this is expected to intensify the selling of foreign investors.
FII selling continues
Foreign institutional investors (FIIs) have been relentlessly selling in the Indian stock market since last year. So far in January i.e. till 8th, FIIs have sold shares worth more than Rs 8000 million in the cash segment.
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