The Indian stock market began FY26 on a muted note amid heightened global uncertainty stemming from unexpected US tariff hikes, experts said on Saturday. Analysts believe that progress in India–US trade negotiations could act as a much-needed catalyst for the markets.
Information Technology and metal stocks were among the worst hit, reflecting deepening concerns over the global economy and the potential for retaliatory trade actions by other nations. Vinod Nair, Head of Research at Geojit Financial Services, highlighted that investors are closely tracking countermeasures by global trade partners, which could escalate geopolitical and economic tensions.
A risk-off sentiment gripped global markets on Friday, with the benchmark Nifty falling 345.65 points or 1.49% to close at 22,904.45. The Sensex and broader indices also tumbled sharply. The Nifty Midcap 100 and Smallcap 100 indices declined 2.91% and 3.56%, respectively. Sectoral indices witnessed cuts between 3% and 6%, with IT, Auto, Pharma, PSU Bank, Realty, Oil & Gas, and Metals all under pressure.
According to Bajaj Broking Research, the index is testing a crucial support zone around 22,700–22,800. Holding above this level could pave the way for a recovery towards 23,565, the previous week’s high. A breach, however, could drag the Nifty down to 22,300.
Experts added that investor focus is now shifting to the upcoming RBI Monetary Policy Committee (MPC) meeting and Q4 FY25 earnings. A dovish RBI stance may support rate-sensitive sectors. Market participants are also watching India’s inflation data and US jobless claims, which could provide fresh direction in the coming sessions.
