Indian equity benchmarks closed lower for the fifth straight session on Friday, dragged down by sustained foreign investor outflows and rising uncertainty over India–US trade negotiations amid fresh tariff threats from the United States.
At the close of trade, the BSE Sensex declined 605 points, or 0.72 per cent, to settle at 83,576, while the NSE Nifty slipped 193.5 points, or 0.75 per cent, to end at 25,683. With this fall, the benchmark indices touched their lowest levels in more than two months.
Market participants remained cautious ahead of key global and domestic cues, including an upcoming ruling by the US Supreme Court on the legality of American tariffs and the release of India’s December inflation data scheduled for Monday.
The Nifty breached the psychological mark of 25,700 during the session. After opening at 25,840, the index moved up to an intraday high of 25,940 before facing selling pressure. Profit booking through the day pushed the index down to a low of 25,648, reflecting weak risk appetite among investors.
Sentiment was further dented after US President Donald Trump assented to a sanctions bill that could potentially impose tariffs as high as 500 per cent on countries purchasing Russian oil. The development heightened concerns over global trade disruptions and their spillover impact on emerging markets, including India.
Foreign institutional investor (FII) selling continued to weigh on domestic equities, adding to pressure already created by global geopolitical uncertainties. Analysts noted that persistent foreign outflows have been a key factor behind the recent correction in Indian markets.
On the stock-specific front, ONGC and Bharat Electronics emerged as notable gainers on the Nifty, offering limited support to the index. However, gains were insufficient to offset broad-based selling across sectors.
Sectoral indices largely ended in the red. Nifty Realty was the worst performer, declining 2.12 per cent. Auto stocks fell 1.11 per cent, while FMCG and consumer durables indices dropped 1.17 per cent each. Except for IT, PSU Bank, and Oil and Gas, all other sectoral indices closed lower.
The broader market mirrored the weakness seen in frontline indices. The Nifty Midcap 100 index declined 0.69 per cent, while the NSE Smallcap 100 slipped 0.79 per cent, indicating cautious sentiment across market segments.
Market experts said equities are likely to remain range-bound in the near term with a mixed bias, given elevated geopolitical headwinds and uncertainty surrounding global trade policies. However, they added that domestic fundamentals remain relatively supportive. India’s GDP growth is expected to stay robust, and upcoming third-quarter earnings could signal a recovery, particularly in the midcap space, which may help stabilise investor confidence.
Meanwhile, the Indian rupee weakened by 22 paise to close at 90.11 against the US dollar. The currency came under pressure due to the decline in domestic equities and continued selling by foreign investors.
