Mumbai, 8 August: Indian equity markets closed sharply lower on Friday, with the benchmark Sensex plunging over 765 points as continued foreign institutional investor (FII) outflows and fresh concerns over US tariffs on Indian goods rattled investor sentiment.
The 30-share BSE Sensex shed 765.47 points, or 0.95%, to settle at 79,857.79. Earlier in the session, the index had dived 847.42 points, or 1.05%, to touch an intraday low of 79,775.84. The broader NSE Nifty also slipped 232.85 points, or 0.95%, ending the day at 24,363.30.
Selling pressure was seen across key sectors, with index heavyweights like Bharti Airtel, Tata Motors, Mahindra & Mahindra, Kotak Mahindra Bank, Axis Bank, and Reliance Industries leading the decline. Meanwhile, NTPC, Titan, Trent, ITC, and Bajaj Finserv managed to post gains.
Market participants attributed the fall primarily to persistent selling by FIIs, who offloaded equities worth ₹4,997.19 crore on Thursday, as per exchange data. In contrast, Domestic Institutional Investors (DIIs) were net buyers, picking up stocks worth ₹10,864.04 crore during the same session.
“Foreign outflows have been consistent, and the fresh tariff imposition by the US is adding to the uncertainty,” said Anuj Shah, a Mumbai-based market analyst. “It’s making investors nervous about India’s export outlook and trade relations.”
The tariff move, which came into effect Thursday, saw the US imposing an initial 25% duty on a range of Indian imports—raising fresh concerns about the global trade environment and its potential impact on India’s economic performance.
Across Asia, markets painted a mixed picture. While Japan’s Nikkei 225 ended in the green, South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng closed lower. European markets traded mostly higher, whereas US indices ended Thursday on a mixed note.
On the commodities front, Brent crude rose 0.59% to USD 66.82 per barrel, adding to inflationary concerns.
The latest fall came a day after markets had shown modest strength. On Thursday, the Sensex had inched up 79.27 points (0.10%) to close at 80,623.26, and the Nifty had gained 21.95 points (0.09%) to end at 24,596.15.
Despite Thursday’s recovery, analysts noted that global cues, particularly geopolitical tensions and trade policy shifts, remain the primary drivers of market volatility.
“Unless we see clarity on global trade developments and some stability in FII behaviour, the markets may remain choppy,” said Komal Batra, equity strategist at a domestic brokerage firm.
