Concerns over US tariffs on India and continuous foreign fund outflows caused sharp falls in Indian stock markets on Friday. The Sensex dropped 765.47 points, or 0.95%, to close at 79,857.79. Similarly, the NSE Nifty lost 232.85 points, also 0.95%, settling at 24,363.30, as reported by PTI.
Over the week, the Nifty declined by 0.8%, and the Sensex fell by 0.9%. This marks the longest losing streak for these benchmarks since April 2020, according to Reuters.
The previous day, investor wealth took a hit due to broad selling on the Bombay Stock Exchange (BSE). The total market capitalization of BSE-listed companies dropped sharply from ₹445 lakh crore to ₹440 lakh crore in just one trading session, losing ₹5 lakh crore, as per bseindia.com.
US Tariffs on India
US President Donald Trump increased tariffs on Indian goods to 50%, blaming India’s purchase of Russian oil. The tariff hike was announced in two parts: an initial 25% levy on July 30, followed by an additional 25% announced on Wednesday.
Trump signed an executive order titled “Addressing Threats to the US by the Government of the Russian Federation,” imposing the extra tariff starting August 7.
Market Movers
Among the 30 Sensex stocks, Bharti Airtel, Tata Motors, Mahindra & Mahindra, Kotak Mahindra Bank, Axis Bank, and Reliance Industries saw the largest losses on Friday. On the other hand, NTPC, Titan, Trent, ITC, and Bajaj Finserv were the top gainers.
On Thursday, both benchmarks hit their lowest levels in three months after the initial 25% tariffs on Indian imports came into effect, increasing trade tensions.
Foreign and Domestic Investors
Foreign Institutional Investors (FIIs) sold shares worth ₹4,997.19 crore on Thursday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹10,864.04 crore, according to exchange data cited by PTI.
Global Market Overview
In Asia, Japan’s Nikkei 225 closed higher. However, South Korea’s Kospi, China’s Shanghai Composite, and Hong Kong’s Hang Seng finished in the red. European markets mostly traded higher, while US stock indices had mixed results on Thursday.
Meanwhile, Brent crude oil prices rose by 0.59% to $66.82 per barrel.