Benchmark indices Sensex and Nifty buckled under selling pressure for the fifth straight session on Friday, falling nearly 1 per cent, as investors turned cautious due to growing concerns over potential US tariff hikes amid lingering geopolitical worries. The relentless foreign capital flight from Indian equities also affected the market sentiment, traders said.
After a brief rebound in early trade, the 30-share BSE Sensex failed to carry forward the momentum and tumbled 604.72 points, or 0.72 per cent, to sink below the 84,000-level and settle at 83,576.24. During the day, it dropped 778.68 points, or 0.92 per cent, to 83,402.28.
A total of 3,104 stocks declined, while 1,062 advanced and 176 remained unchanged on the BSE. The 50-share NSE Nifty dropped 193.55 points or 0.75 per cent to 25,683.30. In the past five trading days, the BSE benchmark declined 2,185.77 points, or 2.54 per cent, and the Nifty tumbled 645.25 points, or 2.45 per cent.
Market sentiment stayed subdued amid elevated geopolitical and global trade-related concerns, particularly renewed uncertainty around potential US tariff actions and related Supreme Court developments. Persistent foreign institutional selling and weakness across broader risk assets further compounded the negative bias, while heavyweights also added to the downside pressure.
From the Sensex pack, NTPC, ICICI Bank, Adani Ports, Bharti Airtel, Sun Pharma and Bajaj Finance were among the biggest laggards. In contrast, Asian Paints, HCL Tech, Bharat Electronics and Reliance Industries were among the gainers. On the macro front, market participants remained cautious ahead of the domestic inflation data for December, scheduled to be released on Monday.
On the global front, market participants stayed on the sidelines amid caution ahead of a US Supreme Court decision on the validity of American tariffs. Sentiment was further dented after US Commerce Secretary Howard Lutnick indicated on Friday that the India-US trade agreement had been delayed.
The BSE smallcap gauge tanked 1.74 per cent, and the midcap index dropped 0.90 per cent. Among sectoral indices, realty tumbled 2.22 per cent, services (1.84 per cent), utilities (1.82 per cent), power (1.79 per cent), telecommunication (1.41 per cent), auto (1.22 per cent), consumer discretionary (1.14 per cent) and financial services (1.09 per cent). BSE Energy, IT, PSU bank, oil & gas, and BSE Focused IT were the winners.
Domestic markets remained in a risk-off mode amid persistent uncertainty over US-India tariff talks and escalating geopolitical tensions, especially concerns over potential US trade measures linked to Russia-related sanctions, according to Bajaj Broking Research.
Foreign institutional investors offloaded equities worth Rs 3,367.12 crore on Thursday, and Domestic institutional investors bought stocks worth Rs 3,701.17 crore, according to exchange data. The rupee declined 26 paise to settle at 90.16 against the US dollar on Friday.
Also read: Sensex tanks 780 points as tariff hike threat looms
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