Sensex, Nifty Slide On Weak Global Cues

Indian shares fell slightly on Friday as tariff worries mounted and investors awaited a key U.S. inflation reading for directional cues.

A stronger rupee helped cap overall losses in the broader market as data showed foreign portfolio investors remained net buyers of Indian equities for the sixth straight session on Thursday, recording their highest one-day buying in 2025.

The dollar was under pressure in international markets due to falling yields and rising trade risks. Analysts said Trump’s auto tariff threat will disrupt global trade and underpin local inflation.

Moody’s has warned that new tariffs and tax cuts could widen the U.S. deficit, raising the risk of a credit downgrade. Fed officials are sending mixed signals on monetary policy as trade-linked inflation risks mount.

Canadian Prime Minister Mark Carney announced on Thursday that the era of deep economic and security ties with the United States “is over,” adding that future trade deals would not return things to the way they were.

Amid much uncertainty about the outlook for interest rates and growth, markets now await direction from the release of the Fed’s preferred inflation gauge later in the day and the U.S. reciprocal tariffs set to take effect on April 2.

The focus was also on the U.S.-India trade meet, which began on Wednesday and will conclude on Saturday. It involves negotiations on a bilateral trade agreement between the two countries.

Talks for a trade deal are progressing well and will be for the “good” of both countries while protecting domestic interests, Commerce and Industry Minister Piyush Goyal said.

The benchmark 30-share BSE Sensex fluctuated in a narrow range before ending the session down 191.51 points, or 0.25 percent, at 77,414.92.

The broader NSE Nifty index closed at 23,519.35, down 72.60 points, or 0.31 percent, from its previous close.

The BSE mid-cap and small-cap indexes fell 0.7 percent and 0.4 percent, respectively.
The market breadth was negative on the BSE, with 2,507 shares declining while 1,491 shares advanced and 121 shares closed unchanged.

Among the prominent decliners, Zomato, Infosys, Maruti Suzuki India, HCL Technologies, Mahindra & Mahindra and IndusInd Bank declined 2-4 percent.