Why Are Sensex and Nifty Facing Continuous Declines? Insights Ahead of Union Budget 2025
Market Overview
Mumbai: The benchmark indices, Sensex and Nifty, experienced a downturn for the fifth consecutive session on Friday, declining by nearly 1%. This drop was attributed to investor apprehension regarding potential tariff increases in the US, compounded by ongoing geopolitical tensions.
Traders noted that the persistent outflow of foreign capital from Indian markets has further dampened market sentiment.
After a brief recovery in early trading, the 30-share BSE Sensex could not maintain its upward trajectory, plummeting by 604.72 points, or 0.72%, to close at 83,576.24, dipping below the 84,000 mark. At its lowest, it fell by 778.68 points, or 0.92%, reaching 83,402.28.
The 50-share NSE Nifty also saw a decline, dropping 193.55 points, or 0.75%, to settle at 25,683.30.
Among the 30 companies listed on the Sensex, NTPC, ICICI Bank, Adani Ports, Bharti Airtel, Sun Pharma, and Bajaj Finance were the most significant losers.
Conversely, Asian Paints, HCL Tech, Bharat Electronics, and Reliance Industries managed to record gains.
On Thursday, the Sensex had already fallen by 780.18 points, or 0.92%, closing at 84,180.96, while the Nifty dropped 263.90 points, or 1.01%, to 25,876.85.
Data from exchanges indicated that foreign institutional investors sold equities worth Rs 3,367.12 crore on Thursday, while domestic institutional investors purchased stocks worth Rs 3,701.17 crore.
Vinod Nair, Head of Research at Geojit Investments Limited, commented, "The domestic risk-off sentiment has intensified due to uncertainties surrounding US-India tariff discussions and rising geopolitical tensions."
In the Asian markets, indices such as South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng all closed higher.
European markets were also trading positively, while US markets ended on a mixed note on Thursday.
Ponmudi R, CEO of Enrich Money, noted, "Indian equity markets have faced ongoing pressure this week, influenced by heightened global trade uncertainties following recent tariff-related comments from US President Donald Trump."
Brent crude oil, the global benchmark, saw a slight increase of 0.18%, reaching USD 62.10 per barrel.