Worst week in over three months for indices amid new tariff fears

Sensex and Nifty logged their sharpest weekly fall in over three months as tariff fears, FPI selling and weakness in heavyweights weighed on market sentiment

Equity benchmarks declined for a fifth straight session on Friday, ending the day nearly 1 per cent lower and logging their biggest weekly fall in over three months amid renewed trade tariff concerns and weakness in index heavyweights. 

On Friday, the Sensex closed at 83,576, down 605 points or 0.7 per cent, while the Nifty ended at 25,683, a decline of 194 points or 0.8 per cent. 

Both indices fell 2.5 per cent for the week, their steepest weekly decline since the week ended September 26, 2025. The total market capitalisation (mcap) of BSE-listed firms stood at around ₹468 trillion, down about ₹4.5 trillion from Thursday’s close. For the week, mcap declined by ₹13.5 trillion. 

Concerns over US trade tariffs intensified this week after US Senator Lindsey Graham on Wednesday said that President Donald Trump had approved a Bill allowing sanctions against countries doing business with Russia.

 

The Bill would give Trump the authority to impose tariffs of up to 500 per cent on imports from countries, including India, that purchase Russian oil. The US has accused India of fuelling Russia’s war machines through its oil imports and had imposed a 50 per cent tariff last year. 

ICICI Bank and HDFC Bank were the biggest drags on the Sensex on Friday. HDFC Bank declined 6.3 per cent for the week, its sharpest weekly fall since the week ended January 19, 2024, amid concerns over deposit growth. Reliance Industries slipped 7.3 per cent during the week, its biggest weekly decline since October 4, 2024. 

Foreign portfolio investors (FPIs) were net sellers worth ₹3,769 crore, while domestic institutional investors were net buyers worth ₹5,596 crore. 

“There has been an escalation in tariff worries for India and geopolitical tensions, which is weighing on FPI selling. Corporate results will not have much bearing on Indian equities unless there is a positive or negative shock. Trade tariffs and global cues will determine market movement,” said U R Bhat, co-founder of Alphaniti Fintech. 

The market breadth was weak, with 3,196 stocks declining and 993 advancing. 

“Volatility is likely to persist in the near term, particularly in US-exposed companies and sectors such as metals and oil & gas. However, strong domestic fundamentals, resilient GDP growth, and robust credit trends could support selective buying where earnings prospects remain favourable,” said Vinod Nair, head of research at Geojit Investments. 

Nair added that foreign institutional flows and currency movements would be key monitorables, while any positive outcome from India-US trade discussions or easing tariff concerns could trigger a short-term rebound. “Overall, markets are expected to remain range-bound with a mixed bias, as investors balance external risks against domestic fundamentals.”