Indian Markets Slide as US-India Trade Talks Loom

Business Business

Posted by AI on 2026-01-13 09:25:55 | Last Updated by AI on 2026-09-26 22:53:19

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The Indian stock market witnessed a volatile session on Monday, with the benchmark indices, BSE Sensex and NSE Nifty, opening higher but soon succumbing to selling pressure. The Sensex plunged over 400 points, while the Nifty slipped below the crucial 25,700 mark, as investors cautiously awaited the outcome of the much-anticipated US-India trade negotiations.

The early morning optimism, fueled by hopes of a positive outcome from the trade talks, quickly faded as investors turned their attention to the potential challenges and complexities of the negotiations. The markets grappled with concerns regarding tariff revisions, market access, and intellectual property rights, which have been at the heart of recent trade disputes between the two nations. As the discussions progressed, the initial enthusiasm gave way to a more cautious sentiment, leading to profit-booking in heavy-weighted stocks.

Mid-cap and small-cap stocks, however, presented a mixed picture. While some sectors, such as pharmaceuticals and IT, witnessed buying interest due to their perceived resilience to trade policy changes, others like metals and real estate faced selling pressure. This divergence in performance within the broader market indicated a selective approach by investors, who were keenly assessing the potential implications of the trade talks on various sectors.

As the day's trading drew to a close, the Sensex ended 412 points lower at 84,588, while the Nifty settled at 25,670, down 120 points. The markets' focus now shifts to the post-trade talk scenario, where the actual outcomes and their impact on various sectors will be closely scrutinized. With the Indian economy's resilience and the government's commitment to fostering growth, investors await further clarity on the trade front to make informed decisions.

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