Benchmark indices ended lower for the third consecutive session on Friday, as persistent concerns over additional US tariffs on Indian exports weighed on sentiment. The Sensex slipped 270.92 points, or 0.34%, to close below the 80,000-mark at 79,809.65. The Nifty declined 74.05 points, or 0.30%, to end below 24,500 at 24,426.85.
On a weekly basis, both indices posted their worst fall in five months, with losses of up to 1.84% (since April 4). On a monthly basis, the Sensex and Nifty dropped 1.69% and 1.38%, respectively, in August, marking the second straight month of declines.
The total market capitalisation on the BSE fell by ₹1.52 lakh crore on Friday and by ₹10 lakh crore during the holiday-shortened week, settling at ₹443.65 lakh crore.
Market performance & key drivers
“Investor sentiment remained cautious as markets attempted to digest the full impact of the US tariffs. The persistence of this issue is likely to hurt the competitiveness of India’s exports in select sectors. It could also weigh on the rupee, driving it towards depreciation,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair added that while markets still perceive tariff-related disruptions as temporary, optimism hinges on progress in trade negotiations. “However, the lack of meaningful interaction between both parties is increasing uncertainty and adding confusion to the market,” he noted.
Technical levels and cautious sentiment
“In the short term, the trend may remain weak, potentially dragging the Nifty towards its 200-day moving average at 24,071. On the lower side, support is placed at 24,400/24,150, while resistance is seen at 24,650,” said Rupak De, Senior Technical Analyst at LKP Securities.
Market breadth remained negative throughout the week. On Friday, 2,187 stocks declined compared to 1,890 gainers on the BSE.
The broader indices underperformed, with the BSE Midcap posting its steepest weekly loss of 2.72% since February 28, while the BSE Smallcap shed 2.93%, the most since March 13. For August, they declined 2.49% and 3.70%, respectively — the sharpest in six months.
Sectorally, barring FMCG, which gained 0.43%, all other indices closed in the red during the week. Realty, telecom, services, utilities, and financial services were the worst hit, each falling over 3%.
Among Sensex constituents, M&M, Reliance Industries, HDFC Bank, Sun Pharma, and Power Grid were the top laggards, declining up to 6.01% during the week.
On Friday, Reliance Industries slipped 2.21% to ₹1,357.05 as its chairman Mukesh Ambani announced at the company’s Annual General Meeting that Reliance Jio’s IPO would be launched in the first half of 2026.
Foreign portfolio investors sold shares worth Rs 8,312.66 crore while the domestic institutional investors purchased shares worth Rs 11,487.64 crore, as per provisional data by the BSE. In August, while the FPIs offloaded shares worth Rs 37,153 crore, DIIs net purchasing stood at Rs 94,828 crore.