In line with other Asian equity markets, the domestic benchmark indices fell on Friday, snapping a two-day winning streak, as better-than-expected US non-farm payroll data dampened expectations of a December rate cut. Depreciation of the rupee against the dollar also weighed on investor sentiment, with the dollar–rupee pair breaching the 89 mark for the first time.
After a volatile session, both the Sensex and Nifty declined 0.47% to close at 85,231.92 (-400.76 points) and 26,068.15 (124 points) .
However, the indices managed to deliver positive returns for the second consecutive week.
Global cues and rupee depreciation
“The Nifty fell after failing to cross its previous all-time high of 26,277, ending its two-day advance as sentiment weakened amid a global selloff triggered by inconclusive US employment data, which kept the near-term interest-rate outlook unclear,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.
For the week, both the Sensex and Nifty recorded gains of 0.79% and 0.61% respectively, marking their second straight week of gains.
“Bullish sentiment continued through the week, supported by stronger Q2 earnings, easing inflation, and optimism around India–US trade negotiations. A moderation in FII selling—driven by expectations of earnings upgrades in H2FY26—also supported valuations. However, markets turned volatile on Friday amid weak global cues and rising concerns over potential delays in the India–US trade talks,” said Vinod Nair, Head of Research, Geojit Investments.
Broader markets plunge
The broader indices, BSE Midcap and BSE Smallcap, however, fell during the week by 1.13% and 2.11% respectively. On Friday, both declined by up to 1.3%, significantly underperforming the benchmarks.
Market breadth was negative in all five sessions of the week. On Friday, there were 2,898 losers as against 1,278 gainers on the BSE.
Investors’ wealth eroded by Rs 4.19 lakh crore on Friday and by Rs 1.72 lakh crore during the week.
Foreign portfolio investors sold shares worth Rs 1,766.05 crore (provisional) on Friday but were net buyers to the tune of Rs 5,198.51 crore during the week. Domestic institutional investors bought shares worth Rs 12,969 crore during the week, including Rs 3,161.61 crore (provisional) on Friday.
All the sectoral indices on the BSE ended in the red on Friday. Metal, realty, capital goods, commodities and industrials were the top laggards, falling up to 2.35%. During the week, these sectors declined up to 3.84%. TECK, IT, auto and banks were the top sectoral gainers, rising up to 1.85%.
Bharti Airtel, Infosys, Axis Bank, Power Grid and Titan Company were the top Sensex performers during the week, rising up to 3.06%, while Tata Motors Passenger Vehicles, Tata Steel, BEL, Adani Ports and Bajaj Finance were the top laggards, declining up to 7.49%.
Barring the Philippines, all major Asian equity indices ended in the red, with South Korea being the top loser, falling 3.79%, followed by Taiwan (down 3.61%), China (down 2.45%), Japan (down 2.40%) and Hong Kong (down 2.38%).