Investors lose Rs 16 lakh crore in a week as Sensex, Nifty slump for 6th day; what’s next?

Domestic equity benchmarks Sensex and Nifty extended their losing streak for a sixth straight session on Friday, ending the week in the red after US President Donald Trump announced steep import tariffs, including a 100 per cent duty on branded pharmaceutical products.

The tariff package also imposed a 50 per cent levy on kitchen cabinets, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks.

The domestic indices suffered a steep decline, erasing around Rs 16.03 lakh crore in BSE market capitalisation over the week. Investor wealth, as reflected in the BSE’s market cap, fell to Rs  450.85 lakh crore, down from Rs 466.89 lakh crore recorded on the previous Friday, September 19.

At the closing bell on Friday, the Sensex shed 733.22 points, or 0.90 per cent, to settle at 80,426.46, taking its six-day losing streak to nearly 2,587 points. The Nifty50 slipped 236.15 points, or 0.95 per cent, to end at 24,654.70.

Mahindra & Mahindra led the losers on the Sensex, slipping 3.62 per cent to Rs 3,400.25. Tata Steel declined 2.84 per cent, while Eternal, Bajaj Finance, Asian Paints, and Sun Pharma dropped 2.83 per cent, 2.75 per cent, 2.62 per cent and 2.60 per cent, respectively.

Five stocks namely, Infosys, Mahindra & Mahindra, ICICI Bank, HDFC Bank and Bajaj Finance, contributed heavily to the Sensex’s decline. 

Among sectoral indices, the BSE IT index slipped 2.41 per cent to 33,327, while the BSE Healthcare index was down 2.14 per cent to settle at 43,046.69.

Within the BSE Sensex pack, TCS and Sun Pharma touched a fresh 52-week low.

Overall, out of the 4,280 active stocks traded on the BSE, 1,073 closed with gains, while 3,064 ended in red and 143 remained unchanged. During the session, 132 stocks touched their 52-week highs, while 154 slipped to their 52-week lows. Meanwhile, 188 stocks were locked in their upper circuits, and 221 hit their lower circuits.

Vinod Nair, Head of Research, Geojit Investments Limited, said the domestic market experienced a bloodbath, mirroring the rout across Asian markets. 

“Investor sentiment was rattled by a fresh wave of tariffs targeting the pharmaceuticals, dragging pharma stocks deep into the red. Meanwhile, Accenture’s weaker guidance and job cuts highlighted slowing IT spending, with AI-driven growth failing to meet expectations, prompting a broad sell-off in tech shares. Investors remain cautious, with a near-term focus on domestic investment and consumption amid global uncertainty," Nair said.

Ajit Mishra, SVP of Research at Religare Broking Ltd, said markets remained under pressure, extending their six-session losing streak, with a weak tone from the start that deteriorated further as the day progressed. 

“Eventually, the Nifty closed near the day’s low at 24,654.70, down 0.95 per cent. The decline was broad-based, with pharma and IT stocks leading the fall following U.S. tariff announcements on branded drugs. The broader indices bore the brunt of the sell-off, slipping nearly 2 per cent each,” Mishra said.

“The announcement of tariffs on branded drugs weighed heavily on sentiment, adding to recent concerns over visa policy changes. IT counters were further dragged by weak guidance from global peers, while persistent FII outflows and a weak rupee amplified the pressure,” Mishra added.