Benchmark indices log longest weekly losing streak since pandemic

Sensex, Nifty post sixth straight weekly fall as trade tensions with US escalate and weak earnings, FPI outflows drag market sentiment; Bharti Airtel leads losses

Indian equity benchmarks fell on Friday, marking their longest weekly losing streak in five years amid concerns over US trade tariffs and lacklustre corporate earnings. 

 

The Sensex closed the session at 79,858, down 765 points, or 0.9 per cent, while the Nifty ended at 24,263, down 233 points or 0.9 per cent.

 

For the week, the Sensex slipped 0.9 per cent and the Nifty 0.8 per cent, recording their sixth consecutive weekly decline — the longest losing streak since the week ending April 3, 2020. 

 

While the two indices are down only about 7 per cent each from their record highs, such long losing spells are associated with bear markets, said experts. 

Heightened trade tensions between India and the US are the latest reason to unsettle the markets, which were already under pressure on account of lackluster corporate earnings growth and sustained selling by overseas funds.

 

Earlier this week, US President Donald Trump announced an additional 25 per cent tariff hike on Indian goods, citing India’s ongoing imports of Russian oil. This levy adds to the previous 25 per cent tariff, effectively raising the total to 50 per cent, one of the highest rates imposed on any country.

 

Trump also declared that trade negotiations with India would remain stalled until the tariff dispute is resolved. This announcement follows months of inconclusive talks, hindered by US demands for greater access to India’s agricultural and dairy markets.

 

The tariff escalation signifies a major rift in India-US relations and threatens to severely impact India’s exports to the US, affecting sectors such as textiles, footwear, and gems and jewellery. 

 

Earlier, Trump described India’s economy as “dead” and accused it of supporting Russia’s war efforts. A significant disruption in exports to the US could drag India’s GDP growth below 6 per cent.

 

“Since July, the Indian equity market has been consolidating, reflecting weakening investor sentiment due to trade-related challenges. Concerns over steep US tariffs and disappointing quarterly earnings have dampened confidence,” said Vinod Nair, Head of Research at Geojit Financial Services.

 

Nair added that market volatility is expected to persist. 

 

 “While risks from US trade tensions and sustained foreign portfolio investor (FPI) outflows remain, potential support from domestic institutional investors (DIIs) could provide some relief. Upcoming inflation data from India and the US will be critical in shaping investor expectations. Market participants should closely monitor global trade developments and corporate earnings, with a strategic focus on domestic consumption-driven sectors better positioned to weather short-term volatility,” he said. 

 

The market's direction will depend on the outcomes of the upcoming summit between US President Trump and Russian President Putin, as well as India-US trade negotiations.

 

Market breadth was weak with 2,548 stocks declining versus 1,503 advancing.

 

“For traders, as long as the market trades below 24,500, weak sentiment is likely to continue. On the downside, the correction could extend to 24,200–24,000. On the upside, a pullback rally is possible if the market sustains above 24,500,” said Amol Athawale, VP-Technical Research, Kotak Securities.

 

FPIs were net buyers, acquiring shares worth ₹1,933 crore, while domestic institutions bought shares worth ₹7,724 crore. If not for the Bharti Airtel block deal, FPI tally would have been negative, said market observers. 

 

Bharti Airtel, which fell 3.4 per cent, was the largest drag on the Sensex. The telecom giant’s shares declined after its promoter offloaded a stake through multiple block deals.