Sensex, Nifty slip nearly 1%, hit 3-month lows; investors lose ₹5.7 lakh cr amid tariff jitters

Extending their opening losses, the Indian benchmark indices ended sharply lower on Friday amid growing concerns over the impact of U.S. tariffs on Indian exports. The BSE Sensex closed 765.47, or 0.95%, lower at 79,857.79, while the NSE Nifty slumped 232.85 points, or 0.95%, to 24,363.30, hitting their three-month low levels.

The broader markets were fared worse, with the Nifty Midcap100 and the Nifty Smallcap100 indices falling 1.64% and 1.5%, respectively.

The sharp sell-off led to a massive erosion of ₹5.5 lakh crore in investor wealth, indicating heightened volatility and broad-based weakness across sectors. The total market capitalisation of BSE-listed companies declined to ₹440.57 lakh crore from ₹446.27 lakh crore at the end of trade yesterday. 

Foreign institutional investors have turned aggressive sellers, offloading ₹15,950 crore worth of stocks throughout August as they flee from India's expensive valuations amid weak fundamentals.

Of the BSE Sensex pack, 25 out of 30 stocks ended in the negative, led by Bharti Airtel , Tata Motors , M&M , Kotak Mahindra Bank , and Reliance Industries , falling between 3.4% and 1.8%. On the other hand, NTPC , Titan , Trent , ITC , and Bajaj FinServ were the only five gainers, rising by up to 1.6%.

Overall, the market breadth was weak, with 2,501 stocks declining out of total traded shares of 4,173 on the BSE. On the other hand, 1,526 shares advanced and 146 ended unchanged. A total of 119 stocks hit their 52-week highs and 110 touched 52-week lows. Additionally, 224 stocks were locked in their upper circuit limits, whereas 225 slipped to their lower circuit limits.

Market logs sixth straight weekly loss

The benchmark indices, the Sensex and the Nifty, extended their losing streak for the sixth consecutive week, marking this the longest stretch of weekly declines since the Covid-19 market crash in 2020.

The sell-off was triggered earlier this week after U.S. President Donald Trump imposed a 25% tariff on Indian goods, escalating trade tensions over India’s imports of Russian oil. Sentiment was further dampened by weak Q1 earnings across key sectors and continued selling by foreign institutional investors (FIIs), which added to the pressure on equities.

Vinod Nair, Head of Research, Geojit Investments, said FIIs remained net sellers, intensifying the pressure on domestic indices.

“Additionally, global financial institutions have begun revising India’s economic outlook downward, citing the adverse effects of the ongoing tariff concern,” he said. Growth projections for 2025 and 2026 have been lowered, reflecting heightened uncertainty surrounding India’s trade and macroeconomic environment.

Technical outlook

The Nifty will find support near the 24,200-24,150 zone as it is the confluence of the 200-day EMA level and 38.2% Fibonacci retracement level of its prior upward rally (21,743-25,669), according to SBI Securities.

“If the index slips below the 25,150 level, then it is likely to extend its southward journey up to the 23,750 level. On the upside, the 100-day EMA zone of 24,570-24,600 will act as a crucial hurdle for the index,” the brokerage said in a note.

Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty moved southward as it failed to sustain above the 50-day EMA on the hourly chart, indicating prevailing selling pressure. Moreover, the index closed below the crucial support level of 24,400, highlighting the strength of the bears.

The short-term trend remains weak, with potential downside towards 24,150-24,200. On the higher side, resistance is seen at 24,475-24,500 for the Nifty.

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