The stock markets witnessed a massive sell-off on Friday, resulting in the wiping out of nearly ₹9 lakh crore worth of market capitalisation. It was the biggest weekly fall in 2025, with sectors such as IT, autos, media, metals, FMCG, and PSB stocks taking a hit from the bears.
In the Sensex, only HDFC Bank managed to stay afloat while in the Nifty50, only 5 stocks ended the day in the green. IndusInd Bank, Tech Mahindra, Wipro, Bharti Airtel, M&M, and Tata Motors were among the top losers in the indices.
The Nifty50 closed at 22,124.70 points and the Sensex at 73,198.10 points, both recording a 1.9 per cent decline. The markets have now fallen by 6 per cent in the month due to concerns over US tariffs, weak corporate earnings, and continuous selling by foreign portfolio investors.
Analysts believe that the market correction is nearing its saturation levels, although the trend may continue in the coming weeks. The Nifty50 is currently down 15.6 per cent from its 52-week high, while the broader market, including Nifty Midcap 150, SmallCap 250, and Microcap 250, has fallen by 21-26 per cent from their highs.
The bearish sentiments in the market were further highlighted as small and microcap stocks slid by 5-6 per cent during the week. With the index slipping below its 20-month exponential moving average, analysts suggest that the bearish trajectory has been solidified, with every minor rebound being met with aggressive selling.
The intensified market sell-off began in the last quarter of 2024 and has continued this year, with US President Donald Trump threatening reciprocal tariff rates on imports. This has had a significant impact on IT stocks, which have plummeted to a 7-month low due to weak US jobs data and the announcement of tariffs on imports from various countries.
Overall, the market sentiment remains negative, and investors are cautious about the uncertain global economic scenario. Despite the challenges, market experts believe that the correction phase may be nearing its end, providing a glimmer of hope for investors in the weeks ahead.
