Indian stock markets wrapped up a tough week with their biggest drop in six months, marking six straight days of losses. Investors worried about higher H-1B visa fees and new US tariffs on pharmaceuticals, which hit the IT and pharma sectors hard.
The Nifty index fell about 2.5% for the week, while the Sensex shed 2.54%. Midcap and small-cap stocks took an even bigger hit, dropping 4.38% and 4.27% respectively, as their high valuations drew heavy selling.
Early in the week, the IT sector felt the squeeze from fears over rising H-1B visa costs, a key issue for Indian tech firms sending workers to the US. Then on Friday, shares of Indian pharmaceutical companies tumbled after US President Donald Trump announced tariffs of up to 100% on branded and patented drug imports starting October 1. This news sparked fresh concerns over India-US trade tensions.
The Nifty wiped out gains from the past two weeks and dipped below its 20-week moving average, signaling a weaker short-term trend. It closed Friday down 236.15 points at 24,654.70, just above key support levels between 24,500 and 24,550.
Analysts say sellers will likely stay in charge unless the Nifty pushes past resistance at 24,750 to 24,850. On a brighter note, sectors like banking, FMCG, and automobiles look solid, backed by strong domestic policies and steady economic growth in India.
Still, the market’s high valuations could face tests without a clear rebound in company earnings and progress on resolving India-US trade issues.
The Indian rupee kept sliding, hurt by foreign investor outflows and global worries from US trade moves. Looking ahead, eyes are on US inflation and jobs data for clues on global markets. At home, the Reserve Bank of India’s policy decision and factory output numbers will shape investor moods in the coming days.
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