The Indian stock market experienced losses on Friday, extending its downward trend for the third week in a row. This decline was primarily influenced by setbacks in significant financial and automobile stocks, along with ongoing concerns regarding U.S. tariffs that negatively affected investor sentiment.
The BSE Sensex dropped by 424.90 points, or 0.56%, to close at 75,311.06. Similarly, the broader Nifty 50 index concluded at 22,795.90, a decrease of 117.25 points or 0.51%.
According to analysts, the domestic market continued to demonstrate widespread weakness, largely due to investor concerns about the hawkish stance indicated in the Federal Open Market Committee (FOMC) minutes. These minutes suggested that interest rates may remain elevated for an extended period, potentially limiting liquidity in emerging markets, as noted by Vinod Nair, Head of Research at Geojit Financial Services. Nair further explained that despite a healthy market correction, uncertainties regarding the gradual recovery of corporate earnings and ongoing tariff-related risks remain, casting doubt on the current valuation levels, particularly in the broader market. He also mentioned that India is lagging behind its Asian counterparts as Foreign Institutional Investor (FII) outflows continue to be significant, maintaining the “sell India, buy China” strategy’s effectiveness for now.
In the United States, stock markets fell sharply on Friday, continuing their decline in response to weak economic reports, new tariff threats, and concerns over declining consumer demand. The Dow Jones Industrial Average decreased by 748.63 points, or 1.69%, settling at 43,428.02. The S&P 500 and Nasdaq Composite also dropped, losing 104.39 points (1.71%) to 6,013.13 and 438.36 points (2.20%) to 19,524.01, respectively.
European markets, however, closed near record highs on Friday, achieving their longest weekly winning streak in nearly a year. The pan-European STOXX 600 index increased by 0.5%, recovering from a one-week low on Thursday. Conversely, Germany’s DAX saw a slight decline as investor caution increased ahead of the country’s upcoming snap elections.
Technical analysis revealed that the Nifty formed a bearish flag pattern breakdown on the hourly chart, indicating a rise in bearish sentiment among market participants, according to Rupak De, Senior Technical Analyst at LKP Securities. De noted that the Nifty closed at a multi-day low amid heightened bearish sentiment, with the Relative Strength Index (RSI) entering a bearish crossover. He indicated the possibility of a correction toward 22,500 in the short term, with 22,850 acting as a strong resistance level.
In terms of trading activity, Godrej Industries, Mahindra & Mahindra, BSE, HDFC Bank, JSW Energy, CDSL, and Kaynes Technology were among the most active stocks on the NSE by value. In terms of volume, Vodafone Idea, Suzlon Energy, YES Bank, SAIL, Tata Steel, NHPC, and Zomato were the most actively traded stocks.
Moreover, shares of Godrej Industries, JSW Infrastructure, Vijaya Diagnostic, Archean Chemical, JSW Energy, ITI Ltd, and Bikaji Foods International saw strong buying interest from market participants. Meanwhile, over 60 stocks reached their 52-week highs, including UPL, Narayana Hruday, and Redington. Conversely, significant selling pressure was observed in Cyient, Mahindra & Mahindra, Asahi India Glass, Anant Raj, Syrma SGS Technology, Radico Khaitan, and Piramal Pharma.
Overall market sentiment was bearish, as 2,246 out of 4,060 stocks traded on the BSE experienced declines, 1,701 advanced, and 113 remained unchanged.
The recommendations, suggestions, views, and opinions put forth by these experts are their own and do not necessarily reflect the views of the publication.
