Indices see worst week in 7 months as Trump diktats hit IT, pharma

Sensex and Nifty fell 2.6 per cent this week, their sharpest drop since February, as heavy FPI selling, US tariffs, and sectoral weakness wiped out Rs 16 trillion in wealth

Indian equities ended sharply lower this week, with benchmark indices recording their worst weekly decline in seven months. Persistent foreign portfolio investor (FPI) selling, global trade tensions, and sector-specific pressures weighed on sentiment. 

On Friday, the Sensex closed at 80,426, down 733 points (0.9 per cent), while the Nifty settled at 24,655, slipping 236 points (0.9 per cent). Both indices extended their losing streak to six sessions — the longest since February for the Sensex and March for the Nifty. 

In the past six sessions, the Sensex shed 3.1 per cent and the Nifty 3 per cent. For the week, both indices fell 2.6 per cent, marking their steepest drop since the week ended February 28. The selloff wiped out nearly ₹16 trillion in investor wealth, dragging the combined market capitalisation of BSE-listed firms to ₹451 trillion. 

FPIs remained net sellers to the tune of ₹16,422 crore this week, rattled by the US administration’s twin moves — a one-time $100,000 fee on fresh H-1B visa applications and steep tariffs on branded drugs. Investors fear these measures could hurt India’s IT and pharmaceutical sectors, both of which are heavily dependent on US revenues. 

The Nifty Pharma index fell 2.1 per cent on Friday and 5.2 per cent during the week, its sharpest weekly drop since mid-February. The Nifty IT index tumbled 8 per cent in the week, leading the market slide, as visa-related costs added to concerns over muted global tech spending. 

With more than half of the sector’s revenues coming from the US, the timing of the visa levy has deepened the uncertainty, especially when IT firms are already grappling with weak demand and slower growth. 

Market participants said the upcoming September quarter results would set the tone for equities, though near-term risks from US trade actions remain a major overhang. 

“The series of (US President Donald) Trump’s tariffs has dampened corporate earnings outlook for the next couple of quarters. Indian markets are not cheap, and FPIs see better opportunities elsewhere, especially in the US, which has outperformed this year. Unless there is some relief on the trade tariff front, stability may take time,” said Deepak Jasani, former head of retail research at HDFC Securities. 

Vinod Nair, head of research at Geojit Investments, said: “On the domestic front, the RBI’s policy decision and upcoming industrial production data will be crucial. That said, fundamentals remain constructive in key sectors like banking, FMCG, and autos, supported by macroeconomic stability and policy measures.” 

Market breadth remained weak, with 3,208 stocks declining against 945 advancing. Among Sensex constituents, Infosys and Mahindra & Mahindra were the biggest drags — slipping 2.4 per cent and Mahindra & Mahindra, respectively.