The sell-off in the Indian stock market further intensified in Friday’s session, March 13, with key averages falling over 2% and ending at the day’s low as rising crude oil prices kept risk-off sentiment elevated, triggering concerns that it could impact corporate earnings and delay interest rate cuts.
Adding to the challenges, overseas investors have remained net sellers in every session in March so far, which has not only kept the market under pressure but also pushed the Indian rupee to multiple record lows against the US dollar, making imports more costly for domestic consumers.
After losing 1% in the previous session, the Nifty 50 dropped another 2.06%, taking its weekly decline to 5.30%, marking the biggest weekly fall in four years. The S&P BSE Sensex also tumbled 1.92%, ending at the day’s low of 74,587.
In this week alone, the index has crashed 4,335 points, the largest such fall since January 2021. The broader markets mirrored the same trend, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices falling over 2.5% each.
All sectoral indices closed in the red, with the Nifty Metal bearing the brunt as it fell 4.82%, while Nifty PSU Bank and Nifty Auto also plunged sharply by 3.72% and 3.60%, respectively. Barring the Nifty FMCG index, all sectoral indices closed with losses of over 1%.
Meanwhile, export-related stocks were sold off heavily after reports emerged that India may put a trade deal with the United States on hold. News agency Reuters reported that India will hold off on signing the trade agreement, citing sources.
The Donald Trump administration has launched fresh trade investigations against several trading partners, with India being one of them.
(more to come)(