Nifty Hits 50-DMA First Time Since Oct 2025: Investors, Brace for Volatility!

• Indian markets, Nifty and Sensex, touched their 50-day moving average (DMA) on January 8, signaling increased market decline and prompting investor caution.
• Significant selling on January 8 saw Sensex drop 780 points and Nifty fall 264 points; both indices briefly dipped below 50-DMA in early December.
• Market decline is attributed to a potential US bill allowing higher tariffs on countries buying Russian oil, leading to profit booking.
• Refining companies (IOC, HPCL) and capital goods firms (BHEL, L&T) saw shares fall due to tariff concerns and news of lifting import restrictions from China.
• Experts warn Nifty could fall to 25,460 if it stays below 26,000, and US tariffs could impact India's growth, inflation, and government borrowing.

Why It Matters: Nifty's 50-DMA breach signals market caution; US tariff bill and global factors threaten India's economic stability.