Sensex Falls 765 Points, Nifty Drops 232 Points in Friday Selloff
Indian equity markets suffered their worst weekly performance since April 2020 on Friday, with benchmark indices crashing to three-month lows amid escalating trade tensions with the United States. The BSE Sensex plummeted 765.47 points (0.95%) to close at 79,857.79, while the NSE Nifty dropped 232.85 points (0.95%) to settle at 24,363.30.
Trump Doubles Down on India Tariffs, Cites Russian Oil Purchases
US President Donald Trump intensified pressure on India by imposing a cumulative 50% tariff in two phases. The first 25% levy was announced on July 30, followed by an additional 25% tariff on Wednesday through an executive order titled “Addressing Threats to the US by the Government of the Russian Federation.” Trump cited India’s continued purchase of Russian oil as justification for the punitive measures, which took effect on August 7.
The US President has also ruled out further diplomatic talks until the tariff dispute is resolved, leaving little room for immediate reconciliation between the two nations.
₹5 Lakh Crore Wiped Out in Single Session
The market carnage translated into massive wealth destruction for investors. On Thursday alone, the total market capitalization of all BSE-listed companies fell from ₹445 lakh crore to ₹440 lakh crore, erasing ₹5 lakh crore in a single trading session.
Weekly performance showed the Nifty declining 0.8% while the Sensex lost 0.9%, marking their longest losing streak since the COVID-19 market crash in April 2020.
Foreign Funds Continue Exodus, Domestic Investors Step In
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth ₹4,997.19 crore on Thursday. However, Domestic Institutional Investors (DIIs) provided crucial support by purchasing stocks worth ₹10,864.04 crore during the same session, helping prevent a steeper decline.
Sectoral Impact and Individual Stock Performance
Among Sensex constituents, telecom and automotive sectors bore the brunt, with Bharti Airtel, Tata Motors, Mahindra & Mahindra leading the laggards. Banking stocks including Kotak Mahindra Bank and Axis Bank also declined significantly, alongside oil-to-telecom giant Reliance Industries.
Defensive plays provided some respite, with NTPC, Titan, Trent, ITC, and Bajaj Finserv emerging as the session’s top gainers.
Global Market Context
Asian markets presented a mixed picture, with Japan’s Nikkei 225 closing higher while South Korea’s Kospi, China’s Shanghai Composite, and Hong Kong’s Hang Seng ended in red territory. European markets traded mostly positive, and US indices closed mixed on Thursday.
Meanwhile, Brent crude oil prices rose 0.59% to $66.82 per barrel, reflecting ongoing global energy market volatility amid geopolitical tensions.
