The Indian stock market experienced a significant sell-off on Friday, resulting in substantial losses for investors. Early trading saw the total market capitalization of BSE-listed companies decline by ₹5.8 lakh crore, falling to ₹387.3 lakh crore.
Market News: The Indian stock market suffered a sharp decline on Friday, leading to widespread investor losses. Initial trading showed a ₹5.8 lakh crore drop in the total market capitalization of BSE-listed companies, reaching ₹387.3 lakh crore. The Sensex fell by nearly 900 points, while the Nifty dipped below the psychologically important 22,300 level. Rising uncertainty surrounding US policies, global recessionary fears, and a strengthening dollar are cited as the primary causes of this downturn.
IT and Auto Sectors Most Affected
Friday's trading saw the Nifty IT index decline by as much as 4%, with Persistent Systems and Tech Mahindra among the hardest hit. The auto sector also experienced a sharp downturn, with the Nifty Auto index falling by over 2%. The banking, metal, pharma, consumer durables, and oil & gas sectors also witnessed declines ranging from 1% to 2%.
Strong Dollar Triggers Foreign Investor Flight
The US dollar index, which measures the dollar's value against six major currencies, reached 107.35 on Friday. A b dollar is a cause for concern for emerging markets like India, as it encourages foreign investors to withdraw their investments. Growing anxieties surrounding trade wars and US tariff policies further destabilized the market.
