Indian equity markets continued their downward spiral on Friday, with the Sensex and Nifty closing lower for the eighth consecutive session in their longest losing streak in two years. The benchmark Sensex shed 199.76 points or 0.26 per cent to close at 75,939.21, while the Nifty 50 fell 102.15 points or 0.44 per cent to end at 22,929.25, as persistent foreign fund outflows and concerns over potential U.S. tariffs weighed on investor sentiment.
“The market declined for the eighth consecutive session, marking its longest losing streak in two years, driven by persistent foreign institutional investor outflows and growing concerns over potential retaliatory tariffs from the United States,” said Devarsh Vakil, Head of Prime Research, HDFC Securities.
The broader market experienced even more severe losses, with the Nifty Midcap Select dropping 269.85 points or 2.38 per cent to 11,090.05, while the Nifty Next 50 fell 1,389.80 points or 2.28 per cent to 59,557.95. Banking stocks also faced pressure, with the Nifty Bank index declining 260.40 points or 0.53 per cent to 49,099.45.
- Also read: Rupee rises 12 paise to close at 86.81 against US dollar
Market breadth remained overwhelmingly negative, with 3,320 stocks declining against just 681 advances on the BSE, while 82 remained unchanged. Notably, 641 stocks hit their 52-week lows, compared to only 47 reaching 52-week highs, highlighting the depth of the ongoing correction.
Defensive stocks showed relative resilience, with top gainers on the NSE being Britannia (+0.95 per cent), ICICI Bank (+0.81 per cent), Nestlé India (+0.76 per cent), Infosys (+0.53 per cent), and HCL Tech (+0.50 per cent). Conversely, the worst performers included Adani Ports (-4.63 per cent), BEL (-4.42 per cent), Adani Enterprises (-4.26 per cent), Trent (-2.89 per cent), and Grasim (-2.69 per cent).
“Bears turned the market red; Nifty plummeted over 2.50 per cent for the week. The Indian equity markets have witnessed a devastating trading week, completely overshadowing the positive momentum built over the past two weeks,” noted Osho Krishnan, Senior Analyst, Technical & Derivatives at Angel One.
The market’s weakness has been attributed to multiple factors. “The risk-averse sentiment continues to rule investors’ minds as corporate earnings are significantly lower than the market expectations during the start of the year, especially for mid- and small caps. Muted earnings trend, INR depreciation along with external factors like tariffs are expected to keep the sentiments weak in the near term,” said Vinod Nair, Head of Research, Geojit Financial Services.
On the technical front, Rupak De, Senior Technical Analyst at LKP Securities, observed: “The Nifty continues to reel under a bear attack, closing below 23,000 after spending a few days floating above this level. Sentiment remains weak, even though the index managed to close 155 points off its low, as it continues to trade below a critical short-term moving average.”
The Indian rupee showed some resilience, strengthening by six paise to close at 86.83 against the U.S. dollar. Jateen Trivedi, VP Research Analyst at LKP Securities, commented: “Rupee traded positive with gains of 0.10Rs at 86.81, supported by the dollar sliding below 107$ and lower CPI numbers in India, which helped the rupee recover further after its sharp fall to 88.00.”
Foreign institutional investors (FIIs) have been persistent sellers, with net outflows of Rs. 24,888.74 crores so far in February 2025. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted: “FPI flows to date in Feb’25 were negative for all key emerging markets (except Thailand).”
Looking ahead, market observers suggest caution. “The current market texture is weak and if it breaks the 22800/75200 support zone then it could slip till 22600-22500/74600-74300,” warned Amol Athawale, VP-Technical Research, Kotak Securities. Meanwhile, Ameya Ranadive, Sr. Technical Analyst at StoxBox, pointed out that “the area around 22850-22850 remains a significant support zone.”
As the market grapples with both domestic and global headwinds, the short-term outlook remains challenging. “In the absence of key domestic triggers, global developments are more likely to provide impetus in setting up our market tone. However, looking at the ongoing scenario, it is advisable to avoid aggressive bets and stay light on positions,” cautioned Osho Krishnan of Angel One.
