Markets extend losses to fifth week, longest slump since August 2023

“FII flows have now become critical in shaping market outcomes amid heavy promoter selling and slowing DII flows. Overall, maintain a cautious stance on markets,” it added.

On Friday, investors lost Rs 5 lakh crore as the Sensex fell 586 points to close at 80,600, while the Nifty50 slipped 203 points to 24,565. In the past five weeks, investors’ wealth eroded by nearly Rs 17 lakh crore as m-cap of all BSE-listed firms came down from Rs 462.19 lakh crore to Rs 455.50 lakh crore.

“The downside was exacerbated by the U.S. Federal Reserve’s persistently hawkish tone, with no signals of an imminent pivot toward rate cuts, thereby denting investor appetite for risk assets. Market participants also stayed on the sidelines ahead of key macroeconomic prints from the U.S. due later in the day, heightening uncertainty,” said Bajaj Broking Research on Friday.

Shares of Indian companies reliant on the US market faced another session of selling pressure on Friday after US President Donald Trump imposed a 25% tariff and additional penalties on goods imported from India. Sectorally, Nifty Pharma led the laggards with a steep 3.3% decline, followed by Nifty IT and Nifty Metal, both retreating over 1.5%. Nifty Realty and Nifty Auto also faced headwinds, correcting 1.8% and 1.04%, respectively.

“With global headwinds, investors showed a preference for domestically driven stories with non-discretionary appeal, as broader sentiment turned selective. FMCG stocks stood out, benefiting from attractive valuations and insulation from external shocks, particularly amid escalating tariff threats. Globally, markets remained under pressure due to rising US inflation and hawkish signals from the Fed and BoJ, dampening hopes of immediate easing of interest rates, which weighed heavily on emerging markets,” said Vinod Nair, Head of Research, Geojit Investments Limited.