Benchmark indices fell sharply on Friday, dragged down by losses in pharma and IT shares, extending their losing streak to a sixth straight session. The Sensex dropped 733.22 points, or 0.90%, to close at 80,426.46, while the Nifty declined 236.15 points, or 0.95%, to end at 24,654.70.
Over the past six sessions, the Sensex has plunged 2,587.50 points (3.12%), and the Nifty has slipped 768.90 points (3.02%), wiping out ₹15.2 lakh crore in investor wealth, including ₹4.51 lakh crore on Friday alone.
Trade tensions batter Pharma and IT Majors
Pharma shares bore the brunt of the selling after US President Donald Trump announced 100% tariffs on patented drugs unless manufacturers set up production plants in the US. The Nifty Pharma index slumped 2.14%, making it the third-worst performing sectoral index on the NSE.
IT shares also extended losses, impacted by concerns over the steep hike in H-1B visa fees and a weaker growth outlook from global peer Accenture, which projected slower demand next year due to expected US spending cuts on consulting services.
“Indian equities closed the week on a subdued note, with broad-based sectoral declines. The IT index came under early pressure amid concerns over rising H-1B visa costs, compounded by Accenture’s subdued outlook,” said Vinod Nair, Head of Research, Geojit Financial Services.
FPI outflows and broader market rout
He added that sentiment was further weakened by fresh US tariffs on pharmaceutical products, which triggered a sharp sell-off in pharma counters.
Investor sentiment was also dampened by the continued depreciation of the rupee, pressured by persistent FPI outflows and heightened geopolitical risks stemming from US trade actions.
During this period, foreign portfolio investors (FPIs) sold shares worth ₹15,293 crore, including ₹5,688 crore on Friday alone, while domestic institutional investors (DIIs) purchased shares worth ₹19,517 crore, including ₹5,843 crore on Friday.
Mid- and small-cap stocks corrected more sharply than large-caps, reflecting valuation stress. The BSE Midcap index fell 1.96% and the BSE Smallcap index declined 2.05% on Friday. Over the past six sessions, they have plunged 4.61% and 4.13%, respectively.
Barring utilities, which ended flat, all sectoral indices on the BSE recorded losses over the past six sessions. IT, TECK, realty, consumer durables, and healthcare were the top sectoral losers, falling up to 7.6%.
On a weekly basis, the Sensex and Nifty lost 2.66% and 2.65%, respectively, snapping a three-week winning streak. The BSE Midcap and BSE Smallcap indices declined 4.52% and 4.29%, respectively, during the week.