Sensex and Nifty record sharpest weekly fall in over three months
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Indian equity markets ended a volatile week on a weak note, with the Sensex and Nifty posting their largest weekly decline in more than three months. Renewed concerns over trade tariffs, foreign portfolio investor (FPI) selling, and losses in index heavyweights weighed on investor sentiment.
On Friday, the Sensex closed at 83,576, down 605 points (0.7%), while the Nifty ended at 25,683, shedding 194 points (0.8%). For the week, both indices fell by 2.5%, marking their sharpest weekly drop since the week ending September 26, 2025. The total market capitalization of BSE-listed firms stood at ₹468 trillion, down ₹4.5 trillion on the day and ₹13.5 trillion for the week.
The decline was driven largely by concerns over potential US trade tariffs. On Wednesday, US Senator Lindsey Graham stated that President Donald Trump had approved a bill allowing sanctions on countries that continue trading with Russia. Under the proposed bill, the US could impose tariffs of up to 500% on imports from countries, including India, that purchase Russian oil. Last year, India had already faced a 50% tariff from the US over similar oil purchases, which Washington argued were fueling the Russian war effort.
Among individual stocks, ICICI Bank and HDFC Bank were the biggest drags on the Sensex. HDFC Bank fell 6.3% for the week, its steepest decline since January 2024, amid concerns over deposit growth. Reliance Industries declined 7.3%, marking its largest weekly drop since October 2024.
Foreign investors were net sellers worth ₹3,769 crore, while domestic institutions were net buyers of ₹5,596 crore.
“There has been a notable escalation in tariff concerns and geopolitical tensions, which is weighing on FPI sentiment. Corporate results are unlikely to significantly impact equities unless there is a major shock. Market direction will largely be guided by trade tariffs and global cues,” said UR Bhat, co-founder of Alphaniti Fintech.
Market breadth remained weak, with 3,196 stocks declining against 993 advancing.
Vinod Nair, head of research at Geojit Investments, noted, “Volatility is likely to continue, especially in US-exposed sectors such as metals and oil & gas. However, strong domestic fundamentals, resilient GDP growth, and robust credit trends could support selective buying in stocks with favorable earnings prospects. FII flows and currency movements will remain key monitorables. Any positive development in India–US trade talks or easing of tariff concerns could trigger a short-term rebound. Overall, the market is expected to remain range-bound, balancing external risks with domestic fundamentals.”
