Sensex Tumbles 650 Points as Tariff Fears Grip Markets

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Last Updated: 9th January 2026 - 04:56 pm

Summary:

Sensex drops 650 points and Nifty slips below 25,700 for fifth straight session on FII outflows, US tariff fears from Trump's Russia sanctions bill, and rising crude prices. 

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Benchmark indexes continued to decline on Friday, with the Sensex down 623.78 points (or 0.74%) to 83,557.18 and the Nifty declining 191.30 points (or 0.74%) to 25,685.55 midday. After a brief recovery earlier in the day, renewed selling pressure from foreign institutional investors and renewed concerns regarding U.S. tariffs contributed to the significant drop in both benchmarks. The laggards for the day were ICICI Bank, Adani Enterprises, and Adani Ports, while the leaders were Eternal and ONGC.

FII Selling Persists

Foreign institutional investors sold off significant quantities of equities on Thursday, marking the fourth consecutive day of heavy selling following a hiatus since January 2. As a result, downward pressure intensified. The breadth of the market continued to remain negative, with the number of stocks that declined compared to the number of stocks that advanced overwhelmingly in favour of the decliners.

Commodity and Currency Drag

Brent Crude has increased to $62.32, boosting India's total imports and increasing the risk of inflation. The Indian Rupee weakened to 89.97 early on Friday from an earlier close of 89.88, mainly as a result of foreign institutional investor selling and the pressures of rising crude oil prices, although there appears to be some level of support by the Reserve Bank of India.

Technical Breakdown Emerges

The Nifty index has gone below its 50-day EMA( Exponential Moving Average), currently at 25911, after pushing through the previous swing low( the lowest point before an upward trend) of 25878 and is now targeting the support area of 25700, which corresponds to the December low, and looking for the resistance cluster between the 26000 - 26050 levels.
 

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