The Indian stock market ended the week on a somber note as key benchmark indices registered their steepest single-day fall in over a month. The Sensex plunged 721 points to close at 81463, while the Nifty lost 225 points, slipping below the 25000 mark to settle at 24837. This marked the lowest closing for both indices in nearly four weeks and extended the downward trend into a second consecutive session.

Investor sentiment took a hit as a combination of factors weighed heavily on the market. Weak global cues, particularly from the US and European markets, combined with disappointing corporate earnings from several major Indian firms, led to a broad-based selloff. Adding to the pressure was aggressive foreign investor selling. According to data from the BSE, foreign portfolio investors offloaded shares worth nearly 1980 crore rupees on Friday, while domestic institutional investors absorbed the hit by buying shares worth over 2100 crore rupees.

The selloff was not limited to the benchmark indices. The broader market witnessed even sharper losses. The BSE Midcap index dropped over 1.4 percent, and the Smallcap index fell close to 1.9 percent, reflecting deeper pain in smaller stocks. The breadth of the market was also negative, with nearly 2900 stocks declining as compared to just over 1100 advancing stocks. The collective erosion in investor wealth was estimated at over 6.4 lakh crore rupees in a single day, and over 6.7 lakh crore for the entire week.

Analysts attributed the fall to a combination of elevated valuations in large-cap stocks, weak corporate results, and a lack of clarity from global central banks. Vinod Nair of Geojit Financial Services pointed out that global concerns, including delayed rate cuts by the European Central Bank and uncertainty surrounding trade talks between India and the United States, are adding to the cautious mood. He also noted that foreign investors continue to hold significant net short positions, which has intensified selling pressure.

Ajit Mishra from Religare Broking highlighted the cautious outlook of management teams during earnings calls as a fresh source of concern. He said that the recent fall is reflective of a growing discomfort among investors regarding future earnings growth, and this concern is being amplified by sustained selling from foreign institutional investors.

On the sectoral front, technology, real estate, energy, FMCG, and oil and gas stocks led the decline, posting weekly losses of up to five percent. Only a few sectors such as banking, healthcare, and financial services managed to hold on to modest gains. Among notable losers this week were large names such as Reliance Industries, Tech Mahindra, Infosys, and HCL Technologies. These stocks lost significant value, dragging down overall indices.

However, it was not all gloom across the board. A few heavyweight stocks managed to buck the trend. Eicher Motors, ICICI Bank, HDFC Bank, Bharti Airtel, and Titan Company ended the week with notable gains, with Eicher Motors alone rising more than 20 percent over the week. These stocks provided some support to the index in an otherwise tough trading environment.

This week also marked the fourth straight week of losses for both the Sensex and the Nifty, making it the longest losing streak in nearly nine months. The Sensex lost 0.36 percent for the week, while the Nifty declined by 0.53 percent. The broader markets fared even worse, with the BSE Midcap and Smallcap indices shedding 1.7 percent and 2.5 percent respectively.

As global uncertainty continues and the earnings season rolls on, investors are expected to remain cautious in the coming sessions. Market experts advise retail investors to stay vigilant, avoid aggressive buying, and stick to fundamentally strong stocks until broader clarity emerges.

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