India’s benchmark equity indices registered their sharpest single-day decline in over four months on Thursday, as nervous investors reacted to the prospect of steep US tariffs, with persistent foreign portfolio outflows and soft cues from global markets.

The Nifty 50 slipped 1.01 per cent to close at 25876.85, while the Sensex dropped 0.92 per cent to 84180.96. Over the week so far, the indices have shed 1.7 per cent and 1.8 per cent, respectively. Market sentiment remained fragile through the session, with the volatility index climbing 6.53 per cent on Thursday, reflecting heightened uncertainty.

Selling pressure was broad-based, dragging all major sectoral gauges into the red. Mid-cap and small-cap indices declined around 2 per cent each. Metals also bore the brunt of the sell-off. The Nifty metal index tanked 3.4 per cent, weighed down by weaker metal prices and profit-taking after the recent rally. The oil and gas pack was the next significant laggard, falling 2.8 per cent as investors evaluated US President Donald Trump’s plan to import Venezuelan crude and its implications for global trade flows and pricing.

Capital goods counters also retreated after reports that the finance ministry may scrap a five-year-old restriction on Chinese companies participating in government tenders, sparking fears of intensifying competition. IT stocks remained under pressure ahead of the release of third-quarter earnings as the Street braced for another muted performance from the sector.

“Shares of export-oriented companies tumbled after Trump supported the bipartisan sanctions bill that proposes a 500 per cent tariff on countries continuing to do business with Russia, including India,” said Siddhartha Khemka, head of research (wealth management), Motilal Oswal Financial Services.

Apparel makers Gokaldas Exports and Pearl Global fell 8.5 per cent and 7.9 per cent, respectively, while seafood exporters Avanti Feeds and Apex Frozen declined 8.6 per cent and 7.8 per cent.

Technical indicators pointed to fragility. “As long as the market is trading below 26,000/84,500, weak sentiment will continue, and the market could slip till 25,750–25,700/84,000–83,700,” said Shrikant Chouhan, head of equity research, Kotak Securities.

Currency markets echoed the risk-off tone. The rupee settled 3 paise lower at 89.90 against the US dollar on Thursday, amid concerns over tariffs and sustained foreign selling.