Indian benchmark indexes on six-day losing run on trade war, earnings worries

India’s benchmark indexes extended their losing run to the sixth straight session on Wednesday due to trade war fears and earnings worries that have also pushed small-cap stocks to the cusp of bear market territory.

The Nifty 50 ended 0.12% lower at 23,045.25, while the BSE Sensex fell 0.16% to 76,171.08. They have lost 3% in the past six sessions.

The more domestically focussed mid-cap and small-cap indexes lost 0.26% each on the day.

At their session low, the small-caps were 21.4% below the record high levels hit on December 12. However, they closed 18.7% below their all-time high.

A close of more than 20% below a record-high indicates that the underlying stock or security has entered a bear market.

The mid-cap index is about 17% from its record high. Both the small- and mid-cap indexes remain in correction territory, which is 10% below the record high.

“The sharp downturn in markets can be primarily attributed to significant selling by foreign investors, disappointing earnings and the looming threat of a global trade war exacerbated by the U.S. tariff uncertainty,” said Akhil Puri, partner of financial advisory at Forvis Mazars.

Indian benchmarks post worst session in three weeks as US tariff concerns spook investors

Investors are worried that India could be the most impacted by U.S. President Donald Trump’s reciprocal tariffs, scheduled to be announced this week due to New Delhi’s pronounced tariff differentials, multiple brokerages said.

To prevent this, Indian Prime Minister Narendra Modi is preparing additional tariff cuts ahead of a meeting with Trump this week.

Eight of the 13 major sectors fell on the day.

Financials bucked the trend to rise 0.45% and snap a five-day losing streak in which they lost 2.4%.

Meanwhile, data released after market hours showed that India’s retail inflation eased to a five-month low of 4.31% in January as food price inflation declined.