Sensex, Nifty witness worst weekly decline in 2.5 years

Both indices trade below 200-DMA; equity investors lose ₹18.4trn in 5 days

- SUNDAR SETHURAMAN & ANJALI KUMARI

The Indian equity benchmarks recorded their first weekly decline in four weeks—and the sharpest in nearly two-and-a-half years—as heavy selloff by foreign portfolio investors (FPIs) continued amid uncertainty over the pace of rate cuts in the US. Also, the rupee touched a new intraday low of 85.11 per dollar before paring losses to close at 85.02, buoyed by FTSE rebalancing inflows, according to dealers.

Amid subdued investor sentiment, the Sensex ended Friday's session at 78,042, down 1,176 points or 1.5 per cent, while the Nifty 50 closed at 23,588, shedding 364 points or 1.5 per cent. The 50-share index slipped below its 200-day moving average (DMA) for the first time since November 21, 2024; the Sensex, too, is trading below the 200-DMA.

Friday's decline marked the steepest single-day drop since October 3, 2024. The week's losses wiped out investor wealth worth ₹18.43 trillion, with the total market capitalisation of BSE-listed firms now at ₹441 trillion.