The domestic key equity indices closed on a negative note for the week as Trump’s tariff tornado takes the globe by storm. The NSE Nifty 50 cracked 2.4% while the Sensex finished the week 2.7% lower.
On Friday, the Nifty 50 ended 346 points or 1.35% lower to settle at 22,904.45, while the BSE Sensex ceased the session by 930.67 points or 1.22% to finish at 75,364.69.
The Nifty metal was the worst hit among the sectoral indices, falling 6.56% to 8,414.45 level in
Friday’s trade. It was followed by Nifty Pharma which declined more than 4% to 20,560.00 level. The sell-off in Nifty IT continued for the second session, dropping 3.6% to 33,511.40 level.
The Nifty Bank fell 95 points or 0.18% to close at 51,502.70. The BSE Midcap collapsed by 3.08% to close at 40,508.53.
Sectoral Index
In the broader markets, small- and mid-cap stocks faced the highest intensity of sell-off. The volatility index India VIX shot up 1.13% to the 13.76 level.
The overall market breadth remained in favour of bears as out of 2,947 stocks traded, 646 advanced and 2,230 declined. Tata Steel (8.43%) was the major losers in the Nifty 50, followed by Hindalco (8.07%), ONGC (7.07%), Tata Motors (5.94%), and Cipla (5.29%). Meanwhile, Bajaj Finance, Tata Consumer Products, HDFC Bank, Apollo Hospitals, and Nestle India were the top gainers in the weak market.
“The recent implementation of higher-than-anticipated U.S. tariffs has had a significant impact on global markets, triggering a bearish trend as investors assess the broader implications. The likelihood of retaliatory measures against the U.S. has further heightened uncertainty. U.S. bond yields and oil prices are trending downward, reflecting concerns over potential economic slowdown and increased recessionary risks,” said Vinod Nair, Head of Research at Geojit Investments.
“Domestically, while the direct impact of these tariffs is relatively moderate compared to other major economies, it remains more substantial than initially projected,” he added.
“We expect the Nifty to consolidate in the range of 23,000 – 23,650 with high intraday volatility. In terms of levels 23,150-23,100 shall act as a very crucial support level and 23,550 – 23,600 shall act as an immediate hurdle. A move beyond 23600 shall signal the resumption of the next leg of upmove towards 24,000–24,200,” said Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan.
The sharp fall in global markets—particularly in the US—and fresh concerns over potential tariffs on pharma impacted sentiment negatively, said Ajit Mishra, Senior Vice President of Research at Religare Broking. However, sustained strength in banking and financial stocks helped limit the overall downside to some extent. “Looking ahead, we anticipate a time-wise correction in the Nifty index,” Mishra added.