India’s benchmark indices, Sensex and Nifty, were down on February 11, extending their losing streak to the fifth session as global uncertainties and weak domestic earnings dampened sentiment. Over the past four sessions, both indices have shed 1.5 percent as U.S. tariff tensions and relentless foreign outflows weighed on markets.

At 9:50 AM, the Sensex was down 200 points or 0.3 percent at 77,090, while the Nifty was down 65 points or 0.3 percent at 23,316. On the NSE, 387 shares advanced, while 1,988 declined.

US President Donald Trump on February 10 signed executive orders reinstating and expanding tariffs on steel and aluminium imports, escalating trade tensions with key allies. The move revokes previous exemptions and duty-free quotas for major suppliers like Canada, Mexico, and Brazil, raising the risk of a broader trade war.

Trump's orders increase aluminium tariffs from 10 percent to 25 percent, reversing exemptions granted under his 2018 Section 232 national security tariffs. The measures also reinstate a 25 percent tariff on millions of tons of steel and aluminium imports that previously entered the US duty-free under quota agreements and product exclusions.

"The decline in the market is primarily due to the rupee's depreciation. When the rupee weakens, foreign institutional investor (FII) selling intensifies because their real returns diminish. So, until the rupee stabilises, we will continue to see panic selling," said Sandip Agarwal, Fund manager and Co-Founder at Sowilo Investment Managers LLP.

Foreign investors have already pulled out Rs 12,643 crore from Indian equities this month, accelerating the downward pressure. The Indian rupee hit a fresh record low on February 10, battered by U.S. President Donald Trump’s latest tariff threats, which strengthened the dollar.

"The key concern right now remains rupee depreciation, which is closely tied to global economic conditions and Trump's policies. However, I believe we are nearing stabilization, and fundamentals will soon take precedence in driving the market," Agrawal added.

He also downplayed the direct impact of U.S. tariffs on India, noting that the country’s trade imbalance with the U.S. is primarily service-driven, mainly affecting IT companies. "The market’s decline is more about currency weakness and investor positioning rather than tariffs," he said.

On a brighter note, Agarwal highlighted that Indian valuations had been slightly stretched compared to global peers, and the ongoing correction is

Among sectoral indices, financial and automobile stocks faced pressure. The Nifty Bank index slipped half a percent, while the Nifty Auto index dropped over a percent, both weighing on the Nifty.

Eicher Motors shares fell over 5 prcent after missing Q3FY25 profit and margin estimates, impacted by high costs and lower sales of high-margin motorcycles. The stock weighed on the auto index.

Shares of tractor manufacturer Escorts Kubota fell over 2 percent after the company posted weak earnings and issued a bleak outlook.

Among individual stocks, Torrent Power shares fell 3 percent after Morgan Stanley downgraded the stock to "Equal-Weight" from "Overweight" and slashed its 12-month target price to Rs 1,413 from Rs 2,026 per share.

Eicher Motors, Apollo Hospitals, Power Grid, Coal India, and Kotak Mahindra were the biggest losers, declining 1-5 percent, while Adani Enterprises, Grasim, Hindalco, Adani Ports, and Infosys led the gains, rising 1-4 percent.

The broader market underperformed the benchmarks, with both the BSE Midcap and BSE Smallcap indices declining over a percent each.

Despite the tariff jitters, Wall Street shrugged off concerns, closing higher on February 10, buoyed by Nvidia and other AI-related stocks. Steelmakers, however, surged after Trump’s fresh tariff hike announcement.

Asian markets mirrored Wall Street’s resilience, trading mostly higher today as investors appeared to look past Trump’s escalating trade campaign.

Anand James, Chief Market Strategist at Geojit Financial Services that support near 23,300 has paused the decline for Nifty 50, but indicators don’t suggest a strong rebound. While an upswing is possible, resistance at 23,480-23,530 could limit gains, with a breakout above 23,600 needed for a bullish shift. Rejection from this level may pull the Nifty back to 23,300 or even 23,220-23,060, though a major collapse is unlikely today.