Stock Market Weekly Recap: NIFTY, SENSEX Record Longest Losing Streak in Two Years, ₹25 Lakh Crore Wiped Out

The Indian stock markets witnessed a brutal sell-off this week, with benchmark indices NIFTY and SENSEX logging their longest losing streak in two years. Investors lost over ₹25 lakh crore in market capitalization, as a combination of global economic concerns, weak corporate earnings, and persistent Foreign Institutional Investor (FII) selling pressure sent markets tumbling for eight consecutive sessions.

The BSE SENSEX plunged by 2.46% (1,920.98 points) to close at 75,939.21, while the broader NIFTY 50 declined by 2.67% (630.7 points) to end below 23,000 at 22,929.25. The week’s losses were primarily driven by global trade uncertainties, lackluster earnings, and concerns over slowing industrial growth in India.

Key Highlights of the Week

• NIFTY and SENSEX mark eight straight sessions of losses, declining over 2% in a week.
• ₹25 lakh crore wiped out in investor wealth, as midcap and smallcap stocks faced heavy selling.
• Eicher Motors emerges as the top NIFTY loser, while Bharti Airtel was the best-performing gainer.
• Natco Pharma shares plunged 31% this week, including a 28% drop in just two days, following disappointing Q3 earnings.
• Tariff war concerns, weak earnings, and persistent FII outflows drove the markets lower.
• Broader markets were hit harder, with NIFTY midcap indices falling 7% and smallcap indices plunging 10%.

A Day-by-Day Breakdown of the Market Carnage

Monday: Weak Start Amid US Tariff Concerns

Markets opened on a weak note, reacting negatively to US President Donald Trump’s hard stance on global trade tariffs. His decision to impose a 25% tariff on steel and aluminum imports triggered fears of a retaliatory tariff war, rattling investor sentiment.

• SENSEX lost 548 points, while NIFTY dropped 178 points to close at 23,381.6.
• Realty, metals, and energy sectors led the declines.
• Broader indices tumbled over 2% as selling pressure intensified.

Tuesday: Tariff Fears Deepen, Markets Plunge Further

The sell-off worsened after President Trump formally signed the new tariffs into law, further escalating concerns about trade tensions and potential retaliatory measures from other nations.

• SENSEX crashed 1,018 points, hitting a two-week low.
• NIFTY plunged 309 points to fall below 23,100.
• All sectoral indices closed in the red, with major losses in realty, auto, consumer durables, and media stocks.

Wednesday: Markets Attempt to Stabilize but Close Lower

Midweek volatility continued, as markets opened sharply lower but managed to pare some losses later in the session. Buying in financial, metal, and banking shares provided temporary relief, but weak global cues kept indices in negative territory.

• NIFTY closed marginally lower at 23,045.25, after an initial sharp drop.
• Metal and banking stocks outperformed, providing some resistance to broader declines.
• Retail investors turned cautious, awaiting further clarity on US trade policies and global economic conditions.

Thursday: Inflation Relief Fails to Lift Sentiment

Despite a positive macroeconomic indicator in the form of a five-month low retail inflation rate, market sentiment remained fragile.

• SENSEX and NIFTY attempted a brief recovery but closed lower due to selling pressure in financial and IT stocks.
• Foreign Portfolio Investors (FPIs) continued exiting the Indian market, triggered by gains in Chinese equities.
• Global market uncertainty overshadowed domestic economic data, preventing a sustained rebound.

Friday: Eighth Consecutive Loss as Trade Concerns Linger

On the final trading day of the week, SENSEX and NIFTY extended their losing streak to eight straight sessions.

• SENSEX fell 200 points to settle at 75,939.21.
• NIFTY declined 102.15 points, ending at 22,929.25.
• Trade-related tensions between India and the US continued to weigh on investor sentiment.

Sectoral Performance: Who Lost the Most?

1. Realty and Metals: Biggest Losers

• Real estate and metal stocks faced the sharpest declines, with NIFTY Realty and NIFTY Metal indices falling significantly.
• US tariff announcements negatively impacted metal stocks, given their exposure to global demand.

2. IT and Financials: Persistent Weakness

• IT stocks were hit by global recession fears, despite a strong start to the earnings season.
• Banking stocks faced pressure, with rising credit risks and concerns over financial sector liquidity.

3. Midcap and Smallcap Stocks: The Hardest Hit

• Broader market indices suffered steeper losses than benchmark indices.
• NIFTY Midcap 100 dropped 7% this week, while NIFTY Smallcap 100 plunged 10%, reflecting higher risk aversion among investors.

Key Stocks in Focus

Eicher Motors: The Top NIFTY Loser

• Eicher Motors recorded the steepest decline on NIFTY, impacted by weak auto sector performance and demand slowdown concerns.

Bharti Airtel: The Week’s Best Performer

• Telecom major Bharti Airtel was among the few gainers, benefiting from rising tariffs and strong earnings outlook.

Natco Pharma: Massive Sell-Off Post Weak Q3 Earnings

• Natco Pharma shares plunged 31% in just a week, following a disappointing earnings report.
• The stock tanked 28% in just two days, as investors reacted negatively to the weak financial performance.

Market Outlook: A Tough Road Ahead?

While some analysts believe a short-term technical rebound is possible, broader market indicators suggest continued volatility and potential downside risks.

Key Challenges for the Market:

Global Trade War Uncertainty: Continued tensions around US trade policies could impact market sentiment further.
FII Selling Pressure: Foreign investors have been aggressively pulling out funds, leading to liquidity concerns.
Weak Corporate Earnings: Disappointing Q3 results from key companies are weighing on the market outlook.
High Volatility in Midcaps and Smallcaps: Risk appetite has declined, with broader market indices facing sharper declines.