Stock Market Slumps: Global Trade Uncertainties Weigh Heavy

Indian stock indices concluded the week on a declining trend due to global trade concerns and persistent foreign investor outflows. Sensex and Nifty witnessed consecutive session losses as investor sentiment remained cautious amidst mixed earnings and US tariff stances. Experts advise a selective investment strategy amid ongoing market volatility.

Indian stock markets faced another day of losses on Friday, marking the eighth consecutive decline in domestic equity indices. The Sensex dropped by 199.76 points to close at 75,939.21, while the Nifty slipped by 102.15 points to settle at 22,929.25. Sectors such as auto, media, metal, and pharma were among the hardest hit.

Ajit Mishra, SVP of Research at Religare Broking Ltd, attributed the downturn to relentless selling by foreign institutional investors. This trend was exacerbated by US President Donald Trump’s reiteration of his tariff reciprocity stance in meetings with Indian Prime Minister Narendra Modi. The continued outflow of foreign portfolios poses additional pressure on the Indian stock market.

The anticipated reciprocal US tariffs could impact $600 billion worth of EU imports. Meanwhile, discussions between India and the US aim to enhance bilateral trade, potentially reaching $500 billion by 2030. Analysts suggest focusing on fundamentally strong businesses amid global uncertainties and mixed earnings reports, as markets navigate through turbulent seas.