Sensex, Nifty crack for 6th straight session: What dragged markets lower today

Indian equity benchmarks extended their losing streak for the sixth consecutive session on Friday, weighed down by broad-based selling pressure and weak global cues. The benchmark BSE Sensex plunged 773 points or 0.90 per cent to close at 80,426, while the NSE Nifty50 slipped 236 points or 0.95 per cent to settle at 24,655. In the past six sessions, the 30-share Sensex has plunged nearly 2,627 points, while the broader Nifty has slipped close to 3 per cent.

Broader markets mirrored the weakness in large caps. The Nifty Midcap100 and Smallcap100 indices declined more than 2 per cent each, indicating selling pressure across the spectrum.

Market participants attributed the fall to multiple headwinds. Prashanth Tapse, Senior VP (Research) at Mehta Equities, said, "Risk-off sentiment continued in equity markets, as markets extended losing streak for the sixth straight session on across-the-board selling amid Trump's decision to impose 100 per cent tariff on branded and patented drugs that further soured investors' sentiment. The market is already reeling under multiple pain-points like strong FII selling, US-India trade uncertainty, depreciating rupee and bullion's rising appeal, which is making investors jittery."

Vinod Nair, Head of Research at Geojit Investments, highlighted that Indian equities mirrored the weakness in global markets. "The Indian 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."

Ponmudi R, CEO of Enrich Money, pointed out that both IT and healthcare sectors were at the centre of Friday's sell-off. "Both IT and healthcare stocks bore the brunt of the sell-off, dragging the broader indices lower as investors rushed to reassess earnings outlooks and export growth prospects. The persistent weakness in Indian rupee, coupled with rising bond yields in the US, further weighed on investor sentiments."

Meanwhile, foreign institutional investors (FIIs) continued their selling spree. Shrikant Chouhan, Head Equity Research at Kotak Securities, noted that FIIs were net cash sellers to the tune of Rs 24,454.10 crore between September 1 and September 25.

On the technical front, SBI Securities stated that the 24,450–24,500 zone will act as a crucial support for Nifty. A fall below this could drag the index to 24,200, while resistance is seen in the 24,850–24,900 range.