Indian Stock Market Faces Weekly Losses Amid Volatility
India’s stock market endured a rough session on Friday, with major indices experiencing declines that led to weekly losses. The broader market was weighed down by significant downturns in several key sectors, including auto, media, pharma, PSU banks, real estate, healthcare, and oil and gas.
The Sensex closed the day at 76,190.46, falling by 329.92 points or 0.43%, while the Nifty ended at 23,092.20, down 113.15 points or 0.49%, according to data from the National Stock Exchange (NSE).
Sensex’s Struggles: A Reflection of Market Uncertainty
Despite a strong performance in 2024, the Sensex is now approximately 10,000 points below its peak of 85,978 points reached in September of the previous year. So far in 2025, the index has dropped by 3%, indicating ongoing market volatility.
Factors Contributing to the Decline
Several key factors are contributing to the uncertainty surrounding Indian stock markets. One of the most pressing concerns is the policy unpredictability surrounding US President Donald Trump’s administration, with investors expressing anxiety about potential disruptions to global trade that may affect emerging markets like India.
Additionally, domestic economic challenges, such as weak GDP growth, have added pressure. The country’s sluggish economic expansion has led to uncertainty about the broader financial outlook, influencing investor sentiment.
Another factor impacting the market is the selling by foreign portfolio investors (FPIs), which has been a recurring theme in recent months. Foreign investors have been pulling out capital amid global uncertainties and weak economic indicators, contributing to the downward pressure on Indian stock indices.
Growth Trends in the Past Year
Despite the recent slump, the Indian stock market experienced notable growth in 2024. Both the Sensex and Nifty saw an approximate 9-10% increase over the course of the year. This follows a strong 2023, where both indices posted cumulative gains of 16-17%. However, 2022 was a different story, with a more modest 3% growth.
The performance in 2024 came after a period of challenges, including rising food prices, slow consumption growth, and a weak GDP that weighed heavily on market sentiment. As inflationary pressures persisted and consumption remained sluggish, investors were cautious about the future trajectory of economic recovery.
Outlook for the Indian Stock Market
Looking ahead, Indian markets will likely continue to face uncertainty in the short term. The ongoing global concerns regarding trade policies, combined with weak domestic growth indicators, could keep volatility high. Nevertheless, the Indian economy has shown resilience in recent years, and markets may benefit from targeted policy interventions and an eventual recovery in consumption.
For now, market watchers will closely monitor the developments in both global trade dynamics and domestic economic indicators. As investors grapple with these uncertainties, India’s stock market will remain highly sensitive to both external and internal factors shaping the economic landscape.
