MUMBAI: Benchmark indices Sensex and Nifty drifted lower in early trade on Friday amid relentless foreign fund outflows and renewed concerns over potential US tariff hikes.
After a brief rebound in early trade, the 30-share BSE Sensex later declined 78.84 points to 84,102.12.
The 50-share NSE Nifty dipped 21.50 points to 25,850.85. From the 30-Sensex firms, ICICI Bank, Tata Motors Passenger Vehicles, NTPC, Adani Ports, Sun Pharma and Trent were among the biggest laggards.
However, Eternal, HCL Tech, Bharat Electronics and Asian Paints were among the gainers.
On Thursday, the Sensex tanked 780.18 points or 0.92 per cent to settle at 84,180.96. The Nifty tumbled 263.90 points or 1.01 per cent to 25,876.85.
In the past four days, the BSE benchmark has tanked 1,581.05 points or 1.84 per cent, and the Nifty dropped 451.7 points or 1.71 per cent.
Foreign institutional investors offloaded equities worth Rs 3,367.12 crore on Thursday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,701.17 crore, according to exchange data.
"Indian equity markets enter today’s session with a cautious undertone following the sharp sell-off in the previous trading day. Risk appetite remains subdued as global trade-related uncertainties continue to weigh on investor sentiment.
"Persistent concerns over potential US tariff actions linked to India’s Russian oil imports have kept sentiment fragile, while the lack of visible progress in US–India trade discussions is reinforcing institutional caution, particularly among foreign investors," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
In Asian markets, South Korea's Kospi index, Japan's Nikkei 225 index and Shanghai's SSE Composite index traded higher, while Hong Kong's Hang Seng index quoted lower.
US markets ended on a mixed note on Thursday.
Brent crude, the global oil benchmark, climbed 0.53 per cent to USD 62.32 per barrel.