News Stocks Indian Equity Markets Post Steepest Weekly Fall in Four Months Amid Geopolitical ConcernsIndian Equity Markets Post Steepest Weekly Fall in Four Months Amid Geopolitical Concerns
Indian equity markets suffered their worst weekly performance in four months, with Sensex declining 2.4% and Nifty 50 falling 2.5%. Broader market segments faced steeper corrections, with mid-cap and small-cap indices dropping 5.8% and 4.5% respectively. The sell-off was driven by geopolitical tensions, sustained FII outflows worth ₹2,549.80 crore, rupee weakness, and disappointing Q3 earnings performance, while market participants await Union Budget developments and India-EU trade deal progress.
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Indian equity markets concluded the week with significant losses, marking the steepest weekly decline in four months as investor sentiment deteriorated across all market segments. The broad-based sell-off reflected multiple headwinds including geopolitical tensions, foreign fund outflows, and underwhelming corporate earnings performance.
Weekly Market Performance
The benchmark indices posted substantial weekly declines, with broader market segments experiencing even sharper corrections:
| Index | Weekly Decline |
|---|---|
| BSE Sensex | 2.40% |
| NSE Nifty 50 | 2.50% |
| Mid-cap Index | 5.80% |
| Small-cap Index | 4.50% |
| Nifty Next 50 | 3.80% |
Friday Trading Session
On Friday, both benchmark indices shed approximately 1% each, despite supportive domestic PMI data and positive global market cues. The Sensex closed 769.67 points or 0.94% lower at 81,537.70, while the Nifty 50 fell 241.25 points or 0.95% to 25,048.65. The India VIX jumped 8% to 14.30, signaling rising market uncertainty.
Key Market Drivers
According to market analysts, several factors contributed to the widespread selling pressure:
- Geopolitical tensions due to the US hard stance that shook investor confidence
- Sustained foreign portfolio investor outflows continuing to pressure markets
- Weakening rupee against major currencies
- Disappointing Q3 earnings with more misses than beats among major results
- Higher Japanese yields potentially impacting India through yen carry trade unwinding
Sectoral Performance and Stock Movements
All sectoral indices closed in negative territory, with Nifty Realty and Media emerging as the top losers, shedding over 2.5% each. The realty sector was the worst weekly performer, tumbling nearly 14%.
Top Nifty 50 Performers
| Gainers | Losers |
|---|---|
| Dr Reddy's Lab | Adani Enterprises |
| ONGC | Adani Ports |
| Tech Mahindra | Eternal |
| Hindalco | InterGlobe Aviation |
| Hindustan Unilever | Jio Financial |
| Bajaj Auto |
Market Breadth and Technical Indicators
Market breadth remained sharply negative, highlighting the depth of the sell-off. Of the 4,361 stocks traded on the BSE:
- 1,321 stocks advanced
- 2,887 stocks declined
- 153 stocks remained unchanged
- 409 stocks hit 52-week lows compared to just 75 touching 52-week highs
Fund Flow Data
Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,549.80 crore, while Domestic Institutional Investors (DIIs) provided support by purchasing stocks worth ₹4,222.98 crore.
Market Outlook
Experts are pinning hopes on the upcoming Union Budget and potential India-EU trade deal progress. Analysts suggest that positive adjustments to capital gains tax in the Budget could revive investor confidence. While the US-India trade deal delay remains a concern, progress in the free trade agreement with Europe provides some comfort for market participants looking ahead to policy developments and earnings announcements from major companies.
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