Indian stock indices closed lower on Friday, extending their losing streak to eight consecutive sessions. Despite early gains, markets ended the week in negative territory, influenced by concerns over U.S. tariff policies and continued foreign portfolio outflows.
The Sensex fell 199.76 points (0.26%) to 75,939.21, while the Nifty declined 102.15 points (0.44%) to 22,929.25. Sectoral indices, including auto, media, metal, pharma, PSU bank, realty, consumer durables, and oil & gas, posted losses, according to NSE data.
“Relentless foreign institutional investor (FII) selling and mixed earnings have kept bulls on the defensive,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.
Market sentiment was impacted by U.S. President Donald Trump’s renewed call for tariff reciprocity during a joint press conference with Prime Minister Narendra Modi. Trump emphasized that the U.S. would match tariffs imposed by other countries, including India, to ensure fair trade. Following their meeting, Foreign Secretary Vikram Misri confirmed that the two leaders had agreed to begin discussions on trade and tariff-related matters.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said that Trump’s stance could affect around $600 billion worth of imports from the European Union. He also highlighted that India and the U.S. aim to more than double bilateral trade to $500 billion by 2030.
The Sensex is now nearly 10,000 points below its all-time high of 85,978. It has declined over 3% since the start of the year, weighed down by weak economic growth and foreign fund outflows.
The recent RBI repo rate cut failed to boost investor confidence, as global volatility persisted.
In 2024, the Sensex and Nifty recorded 9-10% annual growth, following a 16-17% rise in 2023 and a modest 3% gain in 2022. However, factors such as weak GDP growth, rising food prices, and sluggish consumption posed challenges for investors in 2024.
(ANI)
