MUMBAI: The Indian benchmark index Sensex plunged over 600 points this week, while the Nifty fell to a two-month low, closing below the 24, 600 mark amid widespread selling across sectors.
Market sentiment was weighed down by concerns over the newly imposed 25 per cent US tariff on Indian exports, persistent FII selling, and weakness in global markets, analysts said on Saturday.
"The market oscillated between cautious optimism and defensive positioning, ultimately ending lower due to a persistent FII outflow. With global headwinds, investors showed a preference for domestically driven stories with non-discretionary appeal, as broader sentiment turned selective. FMCG stocks stood out, benefiting from attractive valuations and insulation from external shocks, " said Vinod Nair, Head of Research, Geojit Investments Limited.
FMCG stocks rallied sharply after companies like HUL, Dabur India, and Emami reported strong Q1 results, pushing the Nifty FMCG Index up nearly 1 per cent. Key sectors such as auto, metal, IT, and pharma declined 2–3 per cent amid concerns over the U.S. trade action.
Analysts said that the US tariffs will not have a direct bearing on Indian markets, given that major exports are of traditional items such as gems & jewellery, leather and textiles that do not have large representation in the listed space. They feel the bulk of the tariff concerns may already be priced in, and a steep fall is highly unlikely.
The Nifty index formed a bearish candle on the daily and weekly timeframes and has been making lower lows for the past four weeks. If it remains below 24600 zones, weakness could be seen towards 24, 442 and 24, 250 zones, with hurdles shifting lower to 24800 and 24950 zones, according to analysts at Motilal Oswal.