Sensex and Nifty End Lower Amid Global Trade Concerns
Indian stock markets continued their downward trajectory for the eighth consecutive session on Friday, with both the Sensex and Nifty closing in negative territory amid rising global trade uncertainties.
Indian stock markets continued their downward trajectory for the eighth consecutive session on Friday, with both the Sensex and Nifty closing in negative territory amid rising global trade uncertainties.
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Sensex and Nifty Fall as Global Trade Tensions Weigh on Sentiment
At the close of trading, the Sensex, which had dipped to 75,439 during intra-day trading, managed to rebound but still ended 200 points lower at 75,939. The Nifty also saw a decline, shedding 102 points or 0.55%, finishing at 22,929.
Key Sectors and Stocks Hit Hard by Losses
The pharmaceutical sector was among the biggest losers, with stocks like Natco Pharma and Laurus Labs plunging over 9%. Other companies such as Trent, Grasim, Bajaj Auto, Hero MotoCorp, and Sun Pharma experienced losses between 2.5% and 5%. The Nifty Smallcap 100 index saw a sharp decline of nearly 4%, closing at 15,373.70, which is about 22% lower from its peak of 19,716.20. Similarly, the Nifty Midcap 150 index dropped by almost 2.5%, ending at 18,325.40.
Global Trade Tensions Escalate Market Concerns
The decline in Indian stock markets was primarily driven by concerns over global trade, especially after U.S. President Donald Trump signed an order to develop new country-specific tariffs. The order includes additional import taxes on critical industries like automobiles, semiconductors, and pharmaceuticals. This move heightened global trade uncertainties and overshadowed market optimism.
Market Sentiment Remains Weak Amid Global Economic Uncertainty
Market analysts pointed to weak investor sentiment, with concerns over global economic instability impacting investor confidence. Vinit Bolinjkar, Head of Research at Ventura Securities, noted that while markets opened higher on hopes surrounding the Trump-PM Modi talks, trade war fears quickly turned sentiment negative. Additionally, crude oil prices firmed up after the U.S. delayed tariff implementation, but broader market sentiment remained cautious.
For the week, both the Sensex and Nifty faced resistance at higher levels, leading to profit booking. Global macro uncertainties and mixed earnings reports left investors wary, contributing to the ongoing downward trend in the markets.
