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Indian markets failed to sustain early gains on Friday, with the Nifty closing below the 22,800 mark for the first time since June 5, 2024, as foreign outflows continued amidst uncertainty regarding new reciprocal tariffs announced by US President Donald Trump.
The broader market witnessed a pullback, with midcaps snapping a two-day relief rally. All sectoral indices, excluding Nifty Metal, ended in the red, led by a sharp decline in the Nifty Auto index, which was the worst performer of the day, dragged down by Mahindra & Mahindra (M&M). The Nifty Auto index extended its losing streak, closing in the red for the 11th time in the last 13 sessions.
The Sensex dropped 425 points to 75,311, while the Nifty fell 117 points to 22,796. The Nifty Bank index closed down 353 points at 48,981, and the Midcap index lost 648 points, settling at 50,486.
Among individual stocks, Religare surged over 18% as the Burman family took control of the company. Metal stocks, including Tata Steel, gained amid positive comments from the company's MD, while JSW Infra rose nearly 8% following a positive brokerage note. L&T Technology climbed nearly 3% after Macquarie upgraded the stock.
On the downside, PSU banks faced profit booking, with Punjab Bank (PNB) and IDBI Bank down nearly 2% each. M&M saw a sharp 7% drop, marking its steepest fall in seven months. REC and PFC were off their lows but ended in the red after the government considered a bailout for the companies.
Market breadth favoured declines, with the advance-decline ratio standing at 1:2.
Market This Week
Benchmark indices fell for the second consecutive week, although midcaps outperformed the broader market. Auto and pharma stocks were among the worst performers, impacted by concerns over potential tariff hikes from the U.S. Nifty FMCG declined nearly 2% for the week, reflecting concerns over a consumption slowdown.
In contrast, Nifty Metal gained more than 5%, buoyed by optimism surrounding a potential new U.S.-China trade deal. M&M posted its worst weekly performance in nearly three years, dropping over 9%. Bharti Airtel and TCS were also among the top Nifty losers.
Top midcap losers included Bharat Dynamics, Coforge, and Biocon, while Shriram Finance, NTPC, and Hindalco led the Nifty gainers. APL Apollo, JSW Infra, and NMDC were the top gainers in the midcap space.
