Indian Stock Market Closes Lower Amid Weak Global Cues and Broad-Based Losses

The Indian stock market ended the week on a negative note, closing lower on Friday due to weak global cues and broad-based weakness across sectors. Both the Nifty and Sensex extended their losses, with the Nifty closing at 22,795.90, down by 117.25 points (0.51%), and the Sensex shedding 424.90 points (0.56%) to close at 75,311.06.

Nifty Bank and Sectoral Performance

Nifty Bank also experienced a significant decline, closing at 48,981.20, down by 353.35 points (0.72%). The overall market sentiment was weighed down by concerns over global economic factors, with 12 out of 13 major sectoral indices closing in the red. The NSE Nifty Auto sector was the worst-performing, dropping 2.5% following reports that the Indian government might reduce import duties on electric vehicles. Meanwhile, the NSE Nifty Metal sector posted the highest gains on the day.

Global Market Weakness Affects Indian Market

Vikram Kasat of PL Capital-Prabhudas Lilladher attributed the decline to weak global cues, especially after the overnight losses on Wall Street. These losses were driven by a rise in US jobless claims and a weak corporate outlook, which added further pressure to market sentiment. The ongoing concerns over US retaliatory tariffs and continuous foreign selling also weighed heavily on investor confidence.

Key Stocks and Investor Sentiment

Among the top gainers were Hindalco Industries, Tata Steel, and Eicher Motors, while Mahindra & Mahindra, ICICI Bank, and Bharat Petroleum saw the largest losses within the index. Experts suggest that the domestic market remains broadly weak due to the hawkish stance of the US Federal Reserve, as indicated by the recent FOMC minutes. The Fed’s signal of prolonged higher interest rates is expected to limit liquidity in emerging markets like India.

Indian Rupee and Commodities

The Indian rupee ended the day weak at 86.70 against the dollar, despite a dip in the dollar index to 106.60. Persistent FII (Foreign Institutional Investor) selling kept pressure on the currency. Looking ahead, the rupee is expected to trade in the range of 86.45-87.10, with global sentiment and capital flows expected to influence its direction.

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In commodities, gold prices remained volatile. Comex gold fluctuated between $2,920 and $2,935, while at MCX, gold moved between Rs 85,900 and Rs 85,400.

The Indian stock market’s broad-based weakness amid global uncertainties, along with concerns over rising interest rates in the US, led to a significant decline in key indices. Investors will need to keep a close eye on global developments and capital flows in the coming weeks to gauge market direction.