Benchmark equity indices extended losses for the second straight session on Friday, falling up to 0.82% amid weak corporate earnings and concerns over tariffs. The Sensex declined 585.67 points or 0.72% to close at 80,599.91, while the Nifty fell 203 points or 0.82% to end at 24,565.35. On a weekly basis, the Sensex and Nifty slipped 1.06% and 1.09% respectively, marking their longest weekly losing streak in two years (since August 2023).
Weak earnings
“The domestic equity market navigated a volatile week marked by heightened uncertainty around trade negotiations and subdued earnings. The market oscillated between cautious optimism and defensive positioning, ultimately ending lower due to persistent FII outflows,” said Vinod Nair, Head of Research, Geojit Financial Services.
Looking ahead, investors will closely monitor the RBI’s upcoming rate decision next week, while downside risks remain. According to Nair, a stable inflation outlook, potential progress in trade talks, and selective strength in domestic sectors could help lay the foundation for a market recovery.
“Throughout the week, the market consistently faced selling pressure at higher levels. Technically, on daily charts, it is holding a lower top formation, while on the weekly charts, a bearish candle has formed. Additionally, the market is comfortably trading below both the 50-day and 20-day Simple Moving Averages (SMA), which is a negative signal,” said Amol Athawale, VP – Technical Research, Kotak Securities.
Broader market erodes wealth
The broader indices underperformed the benchmarks—the BSE Midcap and BSE Smallcap dropped 1.37% and 1.59% on Friday, and declined 1.79% and 2.47% respectively during the week.
Investors’ wealth eroded by Rs 5.2 lakh crore on Friday and by Rs 7.15 lakh crore over the week. Foreign institutional investors (FIIs) sold shares worth $2.2 billion (Rs 19,338 crore), while domestic institutional investors (DIIs) bought equities worth Rs 24,300 crore during the week, according to provisional BSE data.
Except FMCG, all sectoral indices ended in the red during the week. Realty, telecom, metals, IT (TECK), and oil & gas were the top laggards, declining up to 5.68%. FMCG was the only gainer, rising 2.41%.
Among the Sensex constituents, Kotak Mahindra Bank, Tata Motors, Tata Steel, BEL, and TCS were the top losers, falling between 4.19% and 6.25%. On the other hand, HUL, L&T, Asian Paints, Trent, and ITC emerged as top gainers, climbing up to 5.64%.
Meanwhile, the rupee weakened by 1.16% (101 paise) against the US dollar during the week, closing at 87.5275. This marked its fourth consecutive weekly decline, weighed down by escalating trade tensions with the US. Traders now await the RBI’s monetary policy announcement next week.