Market Crash: Investors lose 7 lakh crore as Nifty falls for fifth straight week

The Nifty 50 index closed lower on Friday, capping their fifth straight weekly loss – the longest since mid-2023 – as weak global cues and sustained selling in pharma and IT stocks weighed on investor sentiment.The benchmark BSE Sensex fell 586 points to close at 80,600, while the Nifty 50 slipped 203 points to 24,565, with market breadth firmly tilted in favour of declines. The Nifty Bank index shed 344 points to end at 55,618, and the Nifty Midcap index dropped 763 points to 56,637.
Both Sensex and Nifty ended the week with losses of around 1%, while the Nifty Bank and Midcap indices declined 2% each. Barring FMCG, all sectoral indices closed lower for the week, with realty, defence, and metal stocks leading losses.
“Markets continue to grapple with a mixed earnings season, while the recent tariff announcement and persistent foreign fund outflows are further weighing on sentiment. Nifty is now approaching its next crucial support at 24,450; a breach of this level could trigger a retest of the long-term moving average, the 200-day EMA, near 24,180. On the upside, the 24,800–25,000 zone is expected to act as a strong hurdle. We maintain our cautious stance and continue to recommend a hedged approach with a negative bias until clear signs of reversal emerge,” Ajit Mishra – SVP, Research, Religare Broking Ltd said.
Pharma stocks were the biggest laggards on Friday, after US President Donald Trump reiterated calls for drug price cuts. Sun Pharma, Dr. Reddy’s, and Cipla each dropped over 4%.IT majors also faced sustained selling pressure, with Infosys and Wipro down 3% each. IndusInd Bank fell 2% after sources told CNBC-TV18 that the Ministry of Corporate Affairs may initiate a suo motu investigation into the lender.

In contrast, FMCG names offered some support, with Trent, Asian Paints, and HUL among the top Nifty gainers. Auto stocks saw selective buying after July sales data came largely in line with expectations. Eicher Motors and TVS Motor rose in trade.

Among broader market movers, PNB Housing Finance plunged 18%, its steepest single-day drop in four years, following the resignation of its CEO. IIFL Finance declined 11% after the company raised its credit cost guidance.

UPL dropped 6% after reporting one-off impairment-related charges in its earnings. On the upside, Suzlon Energy gained 7% on fresh order wins, while Kaynes Technology rose 3% on a strong business outlook.

More than 35 Nifty 50 constituents ended the week in the red. Key weekly laggards included Adani Enterprises, Kotak Mahindra Bank, Wipro, Tata Motors, and Tata Steel. Gainers included Hindustan Unilever, Jio Financial, Larsen & Toubro, Asian Paints, Trent, and Hero MotoCorp.