MUMBAI— Indian equities ended the week lower, with the Sensex falling more than 600 points and the Nifty dropping to a two-month low, closing below the 24,600 mark as selling pressure weighed on multiple sectors.
Market sentiment was dented by concerns over the newly imposed 25% U.S. tariff on Indian exports, continued foreign institutional investor (FII) outflows, and weakness in global markets, analysts said on Saturday.
“The market oscillated between cautious optimism and defensive positioning, ultimately closing lower due to persistent FII selling. With global headwinds, investors shifted toward domestically driven, non-discretionary stories. FMCG stocks stood out, benefiting from attractive valuations and relative insulation from external shocks,” said Vinod Nair, Head of Research at Geojit Financial Services.
The Nifty FMCG Index rose nearly 1% after companies like HUL, Dabur India, and Emami reported strong Q1 earnings. However, key sectors including auto, metals, IT, and pharmaceuticals declined 2–3% amid concerns about U.S. trade measures.
Analysts noted that the U.S. tariffs are unlikely to have a direct impact on Indian markets, as major exports—such as gems and jewelry, leather, and textiles—have minimal representation among listed companies. Most of the tariff concerns may already be priced in, and a steep correction is seen as unlikely.
The Nifty has formed a bearish candle on both daily and weekly charts, making lower lows for the past four weeks. If the index remains below 24,600, it could weaken toward 24,442 and 24,250, with resistance now expected at 24,800 and 24,950, according to Motilal Oswal analysts.
During the week, Tata Consultancy Services (TCS) shares fell 5% following news that the company plans to lay off about 12,200 employees in FY26.
Global markets also faced pressure, with Asian, European, and U.S. index futures slipping around 1% after President Trump signed an executive order imposing “reciprocal” tariffs on multiple countries, with rates ranging from 10% to 41% to take effect within a week. The move has heightened fears of inflation and slowing global growth.
Despite these concerns, the International Monetary Fund (IMF) raised its global growth forecast for 2025 to 3%, up 0.2 percentage points from its April projection, according to its July World Economic Outlook update. (Source: IANS)
