India’s stock market saw sharp selling on Thursday after fresh fears emerged from the US over a possible 500% tariff on countries buying Russian oil and gas. The warning, linked to a new US push to pressure Russia amid the Ukraine war, rattled investor sentiment and triggered a broad-based sell-off across sectors.
The benchmark Sensex slipped nearly 750 points intraday, while the Nifty fell below the crucial 25,900 mark, extending losses for the fourth straight session. Market participants remain on edge as global uncertainties and foreign fund outflows continue to weigh heavily on Dalal Street.
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Markets Open Weak, Selling Accelerates
The session began on a cautious note, with the Sensex opening around 200 points lower. As the day progressed, selling pressure intensified, especially in heavyweight stocks. By around 3:15 pm, the Sensex was trading near 84,200, down close to 750 points. The Nifty dropped over 260 points, slipping below 25,900.
Oil, Metal Stocks Take the Biggest Hit
Energy and metal stocks were among the worst performers. Hindalco slipped nearly 4%, while ONGC fell over 3%. Jio Financial Services also declined around 3%, reflecting broad risk-off sentiment across the market.
Analysts say the fall in these sectors is closely linked to concerns over global trade disruptions and rising uncertainty around energy supplies.
Why Trump’s Tariff Warning Matters for India
Experts are largely linking the market turmoil to developments in the US. President Donald Trump has backed a new bill titled Sanctioning Russia Act of 2025, aimed at tightening economic pressure on Moscow to curb the Russia-Ukraine war.
Under the proposal, countries that continue to buy Russian oil, gas, or energy products could face tariffs as high as 500%. India, which sources over 30% of its crude oil imports from Russia, is seen as one of the most exposed economies, along with China and Brazil.
If implemented, such steep tariffs could make Indian exports to the US significantly more expensive, hurting trade flows and corporate earnings. The Indian government has not yet issued an official response to the development.
Global Markets Add to the Pressure
Weak cues from overseas markets further dampened sentiment. Japan’s Nikkei 225 and Hong Kong’s Hang Seng both slipped sharply, while US markets ended lower overnight. The global risk environment remains fragile, with investors closely tracking geopolitical and policy-related headlines.
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FPI Selling Deepens Market Woes
Another major factor dragging markets lower is sustained selling by foreign portfolio investors (FPIs). In the first few days of January alone, FPIs have offloaded shares worth thousands of crores, adding to pressure on Indian equities and denting investor confidence.
What Lies Ahead
Market watchers say volatility could persist in the near term, but some relief may come as companies begin announcing their third-quarter earnings in the coming days. Strong results could help stabilise sentiment, though global developments will remain a key trigger.
(Disclaimer: This article is for informational purposes only. Investors should consult a certified financial advisor before making any investment decisions.)
