Indian equity benchmarks declined sharply in Friday’s trading session as selling pressure in metal and heavyweight stocks dragged the indices lower. Investor sentiment weakened amid foreign investor outflows and weakness in global markets, resulting in an erosion of nearly ₹9 lakh crore in market capitalisation.
The benchmark BSE Sensex and Nifty-50 both declined by more than 2 percent during the session. The market had already been under pressure, and heavy selling in metal sector stocks intensified the fall. Weakness in heavyweight stocks also contributed to the downward movement in the Sensex.
The 30-share BSE Sensex opened at 75,444 compared with Thursday’s close of 76,034. During the session, the index fell to an intraday low of 74,454 before settling at 74,563.92, down 1,470.50 points or 1.93 percent.
Similarly, the Nifty-50 opened at 23,462, down by more than 150 points at the start of trade. Losses remained limited during early trading but selling accelerated in the afternoon session. The index eventually closed at 23,151, down 488.05 points or 2.06 percent.
Three primary factors contributed to Friday’s market decline. The first was uncertainty surrounding a trade agreement between India and the United States. According to reports, India has decided to delay signing the proposed trade agreement with the United States for several months. The delay is linked to a new investigation initiated by the U.S. administration concerning industrial capacity and trade partner relationships, which has increased tensions after an initial understanding reached last month.
The second factor was concerns over the possibility of a prolonged conflict between Iran and the United States. Iran’s Supreme Leader Mojtaba Khamenei stated in a public address that the Strait of Hormuz should be strategically closed to exert pressure on adversaries. The statement contributed to negative sentiment among global investors and added pressure on markets.
The third factor was continued selling by foreign institutional investors (FIIs). Already net sellers in recent sessions, FIIs accelerated their selling amid rising tensions between Iran and the United States. This resulted in declines in heavyweight stocks and exerted pressure on the benchmark indices.
Metal stocks witnessed significant selling during the session, contributing to the decline in both the Nifty and Sensex. Weakness was also seen in heavyweight stocks including Reliance Industries, HDFC Bank, and Tata Steel.
Global market trends also influenced domestic sentiment. Most Asian equity indices traded lower, reflecting concerns related to prolonged tensions in the Middle East and broader economic uncertainty. Japan’s Nikkei 225 and South Korea’s Kospi declined 1.13 percent and 1.23 percent respectively, while Australia’s S&P/ASX 200 traded 0.25 percent higher.
Overnight trading in the United States also reflected risk-averse sentiment. The S&P 500 closed down 1.52 percent, while the Dow Jones Industrial Average declined 1.56 percent, contributing to cautious sentiment among global investors and adding to pressure on Indian equities.
Despite the broader market decline, initial public offering activity remained available to investors. The Rajmarg Infra Investment Trust (InvIT) and Epsys Aerocom IPOs were open for subscription on Friday as the final day for applications. On the first day of bidding, the issues were subscribed 0.36 times and 15.60 times respectively.
