Indian equity markets closed the week with their most pronounced decline in half a year, marking a sixth straight session of losses, as investor sentiment soured over the proposed H-1B visa fee hike and new US pharmaceutical tariffs.
The Nifty and Sensex slipped by approximately 2.50 per cent and 2.54 per cent, respectively, with both the IT and pharmaceutical segments facing strong selling pressure.
Mid-cap and small-cap stocks suffered steeper declines, dragged down by stretched valuations. The mid-cap index shed 4.38 per cent over the week, while the small-cap gauge fell 4.27 per cent.
Technology counters came under early pressure amid concerns about higher H-1B visa costs.
Pharmaceutical shares tumbled on Friday after US President Donald Trump announced the imposition of tariffs of up to 100 per cent on imports of branded and patented drugs from 1 October.
Nifty wiped out gains accumulated over the previous fortnight and fell below its 20-week exponential moving average, signalling a softening of the short-term trend.
By the close on Friday, the Nifty had dropped 236.15 points to end at 24,654.70, holding just above the key support range of 24,500–24,550.
Market strategists indicated that sellers are likely to retain the upper hand unless the index convincingly moves past the 24,750–24,850 resistance zone.
Despite the current volatility, core sector fundamentals in banking, FMCG, and automobiles remain underpinned by supportive domestic policy measures and stable macroeconomic conditions.
However, analysts cautioned that sustaining present valuation levels will depend on a tangible rebound in corporate earnings and progress in resolving India–US trade tensions.
Meanwhile, the rupee continued to lose ground, pressured by persistent foreign institutional investor outflows and elevated geopolitical uncertainties linked to US trade actions.
Focus Shifts to Upcoming Data and Policy Events
Going forward, investor attention will centre on forthcoming US macroeconomic releases, particularly inflation and labour market data.
Domestically, the Reserve Bank of India’s policy outcome and industrial production numbers are expected to significantly influence market direction.
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