Why India's stock market slipped to three-week low today - Sensex, Nifty in 10 points

The Nifty 50 fell 0.95% to 24,654.7 points, while the BSE Sensex dropped 0.9% to 80,426.46. Both indexes lost 2.7% for the week.

India's stock market fell to a three-week low today in the steepest weekly drop in nearly seven months, on persistent headwinds emerging from US President Donald Trump's “America First” policy.

The Bombay Stock Exchange building on Dalal Street in Mumbai. (Bloomberg)

The Nifty 50 fell 0.95% to 24,654.7 points, while the BSE Sensex dropped 0.9% to 80,426.46. Both indexes lost 2.7% for the week. All 16 major sectors ended lower, with Nifty IT and Nifty Pharma hit the hardest on concerns over their US exposure.

Here are 10 points explaining why stock market was down today:

1. Benchmarks tumble: The Nifty 50 dropped 0.95% to 24,654.7, while the Sensex shed 0.9% to 80,426.46, marking their lowest close in three weeks.

2. Steep weekly loss: Both indices fell 2.7% for the week—their sharpest weekly decline in nearly seven months.

3. All sectors in red: All 16 major sectoral indices ended lower, with the deepest cuts seen in IT and pharma, both heavily reliant on U.S. business.

4. IT sector rout: The Nifty IT index lost nearly 8% this week — its worst performance in seven months — after Trump slapped a $100,000 fee on new H-1B visas.

5. Higher costs ahead: Analysts said the move could sharply raise operating expenses for Indian IT companies, which derive a large share of their revenues from US clients.

6. Accenture warning: Sentiment was further dented by Accenture’s weaker full-year outlook, reinforcing concerns of sluggish demand in the global tech services industry.

7. Pharma under pressure: Trump also imposed a 100% tariff on branded and patented drugs, effective 1 October, sparking a sell-off in drugmakers. The Nifty Pharma index sank 2.1% on Friday and 5.2% over the week.

8. Export worries: While India does not have major exposure to patented drug exports, analysts said the newsflow has created a cloud of uncertainty over export-oriented sectors.

9. Foreign selling resumes: Foreign portfolio investors offloaded about $1.4 billion in Indian equities this week, reversing two weeks of buying, amid jitters over US policy moves on visas and pharma trade.

10. Broader market hit: Mid-caps fell 4.6% and small-caps 5.1% for the week. One bright spot was Larsen & Toubro Ltd., which gained 2.3% after exiting its loss-making Hyderabad Metro rail project.