Indian equity markets continued their downward trajectory on Friday, with benchmark indices extending their losing streak to a fifth consecutive session and recording their worst weekly performance in over three months. Investor sentiment remained cautious amid concerns over potential US tariff hikes and sustained foreign fund outflows.

Market Performance Details

The Sensex declined 604.72 points, or 0.72%, to close at 83,576.24, slipping below the crucial 84,000 mark. During intraday trading, the index had fallen as much as 778.68 points to touch a low of 83,402.28. The Nifty dropped 193.55 points, or 0.75%, to settle at 25,683.30.

BSE-listed companies have collectively lost around ₹15 lakh crore in market capitalisation over the last five sessions of selling, highlighting the magnitude of the current market correction.

US Supreme Court Ruling in Focus

Investor attention has shifted to a key ruling expected from the US Supreme Court regarding Trump's use of emergency powers to impose tariffs. The court is set to decide whether Trump can invoke the International Emergency Economic Powers Act (IEEPA) to levy tariffs without congressional approval. During arguments held in November, the justices had indicated scepticism over the scope of presidential authority to impose such duties.

Technical Analysis and Market Outlook

Market analysts have provided technical perspectives on the current market situation. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, identified the 100-day exponential moving average (EMA) zone of 25,600-25,550 as immediate support for the Nifty.

Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty has slipped further after moving below its 50-day EMA, indicating rising weakness. The index closed at a several-day low, with market sentiment appearing negative. In the short term, the trend may remain weak, with potential downside towards 25,550-25,500, while resistance is seen at 25,850.

Market Sentiment and Concerns

Ajit Mishra, Senior Vice President Research at Religare Broking, highlighted that sentiment remained subdued due to geopolitical and global trade-related concerns. The uncertainty around potential US tariff actions and related Supreme Court developments continues to weigh on investor confidence, contributing to the sustained selling pressure across Indian equity markets.

Indian benchmark indices concluded their worst week in over three months, with both Sensex and Nifty declining 2.5% amid broad-based selling pressure that wiped out ₹15 lakh crore in market capitalisation from BSE-listed companies.

Market Performance Overview

The weekly decline represents the steepest fall since late September when indices dropped 2.7%. On January 9, the Nifty 50 closed at 25,683.30, down 0.75%, while the Sensex ended at 83,576.24, declining 0.72%.

Sectoral Impact and Major Movers

Fifteen of the 16 major sectors declined during the week, with oil and gas stocks leading the losses. The Defence index was the sole gainer, rising 1.3%, while India Tourism, Oil & Gas, and Energy indices shed over 5% each.

HDFC Bank, India's largest private lender and the heaviest-weighted stock, emerged as a significant drag on the market. The bank's shares slid 6.3% for the week, marking its worst weekly performance in nearly two years. This decline followed the bank's quarterly business update, which raised concerns over slower deposit growth. The stock's poor performance dragged the banks index down by 1.5% for the week and resulted in HDFC Bank losing over ₹1 lakh crore in market capitalisation.

Technical Analysis and Market Outlook

Technical analysts noted that the market has slipped below key moving averages, indicating increasing weakness. According to Amol Athawale from Kotak Securities, the market has formed a long bearish candle on weekly charts and is trading below short-term averages, which is largely negative.

The Nifty has moved lower from the 50 EMA, with market sentiment appearing decisively negative. Technical support levels are identified at 25,600-25,550, while resistance is placed at 25,850. Below the immediate support zone of 25,600, selling pressure could accelerate, potentially taking the market to 25,400-25,300 levels.

External Factors and Market Pressure

The selling pressure intensified following reports that US President Trump backed a bipartisan bill targeting countries doing business with Russia with up to 500% tariffs on imported goods. This development has particular significance for India, which has been the second-largest buyer of Russian crude after China, contributing to the broad-based selling in recent trading sessions.

Among mid-cap stocks, Premier Energies, Waaree Energies, Inox Wind, NBCC, and HPCL were among the top weekly losers, reflecting the widespread nature of the market decline across different segments and sectors.