Synopsis
Indian stock markets ended a difficult week with a significant decline on Friday. The rupee hit new record highs and global tensions fueled investor caution. Shares of Adani group companies saw a sharp decline. Broader markets also suffered substantial losses. Investors are concerned about global uncertainty and potential conflicts.
AgenciesOver the past week, the mid-cap index fell 4.4% and the small-cap index fell 5.5%.
Mumbai: Indian stock indices fell nearly 1% on Friday, ending a bruising week, as fresh record lows for the rupee simmer geopolitical tensions deepened risk aversion.
Adani Group Stocks led the sale after the US Securities and Exchange Commission (SEC) reportedly asked a US court for permission to personally email summons to conglomerate founder Gautam Adani and his nephew Sagar Adani for alleged $265 million fraud and bribery scheme.
THE Clever NSE closed at 25,048.65, down 241.25 points or 1%, the lowest closing level since October. THE BSE Sensex finished 769.67 points, or 1%, down to 81,537.70. Both indicators were down 2.5% for the week.
Agencies Global uncertainty takes its toll
The total market capitalization for BSE-listed companies fell by over ₹16 lakh crore during the week.
Elsewhere in Asia, South Korea grew by 0.8% and Taiwan by 0.7%. Hong Kong added 0.5%, while China and Japan gained 0.3% each.
“Global uncertainty crushed investor confidence, and additional buyers stayed away, fearing a knife falling on them,” said Pankaj Tibrewal, founder and CEO of Ikigai Asset Manager.
Donald Trump’s new warning that a US “armada” is heading towards Iran has intensified concerns about military conflict in the Middle East, sending oil prices and safe-haven assets such as gold and silver soaring.
Brent crude futures rose 1.8% to $65.2 a barrel on Friday. Gold futures rose 0.3% and silver futures rose 2.9% to hit record highs.
The rupee weakened to a record low of 91.8 against the US dollar on Friday. Foreign portfolio investors (FPI) sold a net ₹4,113.4 crore worth of shares, while domestic institutional investors bought ₹4,102.6 crore. So far in January, FPIs have sold ₹34,192.5 crore worth of shares.
THE MIDDLE-CAPACITY MISFORTUNES
The pressure was greater on the broader markets. The Nifty Mid-cap 150 index fell 1.7%, while the Small-cap 250 lost 2%. Of the 4,361 stocks traded on the London Stock Exchange, 1,229 rose and 2,989 fell. Over the past week, the mid-cap index fell 4.4% and the small-cap index fell 5.5%.
“The fall is more pronounced on a stock-specific basis, even with lower volumes, indicating market weakness,” Tibrewal said. “Among NSE 500 stocks, the median stock return is down 28% from their one-year highs.”
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(What’s moving Sensex And Clever Track latest market news, stock market advice, Budget 2025, Equity market on the 2025 budget And expert adviceon AND Markets. Additionally, ETMarkets.com is now on Telegram. For the fastest news alerts on financial markets, investment strategies and stock market alerts, subscribe to our Telegram feeds .)
Subscribe to AND Bonus and read it Electronic document on economic times Online.and Sensex today.
Most trending stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro stock price, NTPC stock price
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