
From tariffs to war: why Indian stocks keep losing momentum
Subscribe to enjoy similar stories.Indian equities have spent the past year lurching from one shock to another. Just as investors adjust to one trigger, another upends sentiment—from tariff threats and geopolitical flare-ups to relentless foreign investor selling and slowing earnings growth.The latest blow has come from the war in West Asia, which has once again rattled markets already struggling to sustain momentum.
But the turbulence did not begin there.Last April, the Indian stock market tumbled after US President Donald Trump announced sweeping tariffs, catching investors off guard. Days later, when Washington paused the tariffs to allow negotiations, stocks rebounded sharply.Then came the India-Pakistan military conflict, reviving caution across Dalal Street.
When tensions eased, the bulls returned with force, pushing the Nifty 50 from 24,000 to 25,600 in roughly six weeks.That rally, however, quickly lost steam. Trump’s subsequent announcement of a 50% tariff on India dealt another blow to sentiment, dashing hopes of fresh record highs.
Optimism briefly returned on expectations of a US-India trade agreement, helping the Nifty begin 2026 at an all-time high.Yet even after the trade deal announcement, markets struggled under persistent foreign institutional investor (FII) selling pressure. Now, renewed geopolitical uncertainty in West Asia has added another layer of volatility, leaving many investors bruised and disillusioned.Markets extended their slide for a fourth straight session on Tuesday, with the Sensex plunging 1,456 points to 74,559 and the Nifty 50 falling 436 points to 23,379.
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