Nifty Extends 6-Day Losing Streak; Small-Caps See Biggest Fall in 6 Months

Market Update at 4:15 PM: On Friday, September 26, Indian equity benchmark indices extended their losing streak for the sixth consecutive session. The Nifty 50 ended down by 236.15 points, or 0.95 per cent, at 24,654.70, marking its steepest intraday fall in September. The Sensex closed lower by 733.22 points, or 0.90 per cent, at 80,426.46.

For the week, benchmark indices slipped 2.65 per cent, their biggest weekly drop in nearly six months. Both the Nifty 50 and the Sensex snapped a three-week winning run, finishing all five trading sessions in negative territory. The volatility index, India VIX, rose over 5 per cent and closed above the 11 mark.

Weakness was broad-based, with all sectoral indices ending in the red. Nifty Pharma fell 2.14 per cent after US President Donald Trump announced a 100 per cent tariff on branded and patented drugs, triggering the sharpest drop in the index in two months. Nifty IT declined 2.45 per cent as Accenture’s weak revenue outlook raised concerns over sectoral growth, dragging the index to its lowest level since April 22. Nifty Metal and Nifty PSU Bank also recorded significant losses, down 1.93 per cent and 1.78 per cent, respectively. Nifty FMCG showed the most resilience, slipping only 0.47 per cent.

Larsen & Toubro rose 2.34 per cent after announcing its exit from the loss-making Hyderabad Metro project, contributing 25.55 points to the Nifty. ITC and Reliance Industries also supported the index, adding 10.07 and 9.87 points, respectively. On the downside, Infosys weighed heavily on the index with a loss of 25.91 points. Mahindra & Mahindra and ICICI Bank also dragged the index, losing 25.35 and 20.92 points, respectively.

The Nifty Midcap 100 fell 2.05 per cent, while the Nifty Small-Cap 100 dropped 2.26 per cent, marking its steepest intraday fall in the last six months. Broader market weakness extended for the fifth straight session.

Market breadth on the NSE was negative, with 2,424 stocks declining against 628 advancing, while 86 remained unchanged. A total of 50 stocks touched new 52-week highs, whereas 139 stocks hit their 52-week lows. Additionally, 57 stocks were locked in upper circuits, while 106 stocks hit lower circuits.

Market Update at 12:30 PM: The benchmark Indian equity indices continued their losing streak on Friday, marking the sixth consecutive session of decline. 

Trump declared a 100 per cent tariff on any branded or patented pharmaceutical product entering the United States, along with a 25 per cent duty on heavy trucks and a 50 per cent levy on kitchen cabinets and related products. The announcement weighed heavily on Indian pharmaceutical and export-related stocks.

At 12 PM, the BSE Sensex was trading at 80,780.28, down 379.4 points or 0.47 per cent, while the NSE Nifty50 stood at 24,768.65, slipping 122.2 points or 0.49 per cent.

On the BSE, Sun Pharma led the losers’ list, followed by Tata Steel and Tech Mahindra. On the other hand, L&T, Tata Motors and Maruti Suzuki were among the Top Gainers.

Broader markets also mirrored the weakness. The Nifty MidCap 100 index declined 1.08 per cent, while the Nifty SmallCap 100 index dropped 1.52 per cent. Sectorally, the Nifty Pharma index was the biggest drag, falling over 2 per cent after the tariff shock on imported branded and patented drugs.

Market Update at 10:50 AM: India's equity benchmarks opened lower on Friday, led by losses in pharmaceutical shares following US President Donald Trump's announcement of a 100 per cent levy on branded and patented drugs.

The Nifty 50 fell 0.29 per cent to 24,818.55, while the BSE Sensex (SENSEX) dropped 0.25 per cent to 80,956.01, as of 9:15 a.m. IST.

Pharmaceutical stocks were among the hardest hit, slipping 2.3 per cent, with all constituents showing losses.

Trump on Thursday announced a fresh round of tariffs on a wide range of imported goods, including branded and patented drugs, as well as heavy-duty trucks, which will take effect from October 1.

The US accounts for slightly more than a third of India's pharmaceutical exports, which primarily consist of cheaper generic versions of popular drugs. Exports to the country rose 20 per cent to around USD 10.5 billion in fiscal 2025.

Pre-Market Update at 7:45 AM: On Friday, September 26, equity benchmark indices Sensex and Nifty 50 are expected to open lower after US President Donald Trump announced steep tariffs on pharmaceutical products, furniture, and heavy trucks. At 7:19 AM, the GIFT Nifty was trading at 24,923, down 40 points.

The new tariff structure, effective October 1, includes 100 per cent on pharmaceutical drugs, 50 per cent on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture, and 25 per cent on heavy trucks. This development weighed on investor sentiment across global markets.

On Thursday, September 25, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 4,995.42 crore, taking total September outflows to Rs 24,454 crore. Domestic Institutional Investors (DIIs), on the other hand, were net buyers for the 23rd consecutive session, purchasing equities worth Rs 5,103 crore.

Indian benchmarks closed lower for the fifth consecutive session. The Nifty 50 fell 166 points, or 0.66 per cent, to 24,890.85, slipping below the 24,900 mark and breaking its 50-EMA support. The Sensex dropped 555.95 points, or 0.68 per cent, to 81,159.68, as persistent FII selling kept investors cautious. 

Sectorally, most indices ended in the red. Nifty Metal gained 0.22 per cent, while Nifty Realty and Nifty IT were the worst performers. Realty declined over 4 per cent in two sessions, and IT extended its fall to a fifth straight day. Broader markets were also under pressure, with Nifty Midcap and Small-cap indices posting their fourth consecutive day of losses.

US markets declined for the third straight session on Thursday. The Dow Jones Industrial Average fell 173.96 points, or 0.38 per cent, to 45,947.32. The S&P 500 dropped 33.25 points, or 0.50 per cent, to 6,604.72, while the Nasdaq Composite lost 113.16 points, or 0.50 per cent, to 22,384.70. 

The fall came after stronger-than-expected US economic data, which clouded expectations of Federal Reserve rate cuts. GDP for Q2 2025 was revised upward to 3.8 per cent, the fastest growth since Q3 2023. Jobless claims dropped by 14,000 to 218,000 for the week ending September 20, below expectations of 235,000. Durable goods orders also rose 2.9 per cent in August.

Gold prices edged lower as a stronger dollar reduced expectations of Fed rate cuts. Spot gold fell 0.2 per cent to USD 3,741.71 per ounce but was still up 1.7 per cent for the week. Crude oil prices moved higher, with WTI above USD 65 per barrel and Brent crude nearing USD 70 per barrel. Both benchmarks were set for a weekly gain of over 4 per cent, their strongest since early June. The US dollar index remained near a three-week high at 98.42.

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Disclaimer: The article is for informational purposes only and not investment advice.