Indian markets experienced significant volatility on Friday, with the Sensex dropping 450 points from its intraday high to close at 75,210, a 0.25% decline from the previous close, as reported by Moneycontrol. The Nifty 50 ended at 23,700, down 0.18% from the day's opening levels, erasing all early gains as six key factors combined to weigh on market sentiment. The broader market underperformed significantly, with Nifty Midcap 100 and Nifty Small cap 100, each falling over 0.50%, underperforming the key averages throughout the session.
Both major indices ended their positive momentum for the week, with the Nifty 50 and Sensex each closing with losses of 2.22% and 2.65% respectively, as reported by Live Mint. This marked the end of their two consecutive weeks of gains, with the decline attributed to profit booking, weak global cues, and a sharp jump in crude oil prices that weighed on market sentiment. The latest session's sharp intraday volatility, with the Sensex dropping 450 points from its high, further amplified the weekly losses.
The market decline was driven by strong selling pressure in specific sectors that outweighed gains in other segments. According to Live Mint reports, selling in financial and metal stocks offset IT sector gains, with IT and select consumer goods stocks providing some support to the markets but failing to offset the broader negative sentiment. The divergent performance across sectors highlighted the selective nature of the current market correction, with the latest session's volatility reflecting heightened uncertainty across different market segments.
The Indian rupee experienced significant weakness, falling to another record low of 96.5 against the US dollar, as reported by Live Mint. This marked the rupee's weakening of nearly 2% against the dollar over the last seven sessions, with the currency extending its streak of historic lows. The rupee's decline was attributed to a stronger greenback, elevated crude oil prices, and sustained selling by overseas investors concerned about an economic slowdown.
Foreign investor sentiment remained weak with continued selling pressure on Indian equities. According to Live Mint data, FPIs have sold over ₹2.20 lakh crore worth of Indian stocks in 2026 so far, significantly higher than the ₹1.66 lakh crore in entire 2025. This sustained selling by overseas investors has contributed to the currency's weakness and broader market decline, with Street concerns growing that the rupee could weaken to 100 against the dollar this year.
