Indian equity markets extended losses on Friday amid rising anxiety over the pending India-US trade deal, weak corporate earnings, and persistent foreign investor selling. Key indices dropped nearly 1 per cent, with most sectors and broader markets in the red.
As of 2:53 PM IST, the BSE Sensex had declined 748.22 points (0.91 per cent) to 81,435.95, while the NSE Nifty 50 fell 237.65 points (0.95 per cent) to 24,824.45, both hitting fresh intraday lows.
Why the Market Is Falling Today
1. Uncertainty over India-US Trade Deal
With the August 1 tariff deadline approaching, markets are jittery due to the lack of clarity around a possible trade pact between New Delhi and Washington. Any delay or failure to finalize terms could trigger retaliatory tariffs of up to 26 per cent, further hurting sentiment.
2. Weak Q1 Earnings
Several high-profile companies have disappointed investors with their quarterly results:
Nestle India reported a 13 per cent YoY drop in consolidated net profit, dragging the Nifty FMCG index lower.
Mphasis and Bajaj Finance also fell, despite reporting profit growth, as investor focus shifted to guidance and valuations.
3. Broad-Based Sectoral Selloff
Most sectors were in the red, with Nifty Media (–1.91%), Nifty Energy (–1.42%), and Nifty Auto (–1.32%) leading the decline. Only Nifty Pharma managed to stay in positive territory.
4. FII Selling Pressure
Foreign Institutional Investors have turned net sellers in July after four months of inflows. Analysts point to stretched valuations and global uncertainty as key reasons for the reversal in trend. The selloff is particularly intense in smallcap stocks, which had seen rapid price appreciation.
