Massacre on D-Street! Investors to lose over Rs 16 lakh crore this week as Nifty, Sensex crashes; market down 5% from all-time highs – The Times of India

It’s a massacre on Dalal Street! India’s stock indices Nifty50 and BSE Sensex have fallen more than 2% this week, causing investors to lose over Rs 16 lakh crore. Even as US President Donald Trump’s tariff threats to the EU and lingering geopolitical uncertainties rattled global markets early this week, Indian stocks failed to recover after tensions subsided.Indian stock markets witnessed sharp volatility this week and ended significantly lower. The week started with heavy selling, pushing Nifty close to 25,000 and Sensex below 81,500, followed by a brief recovery mid-week with Nifty recovering to around 25,290 and Sensex crossing above 82,300. However, the recovery was short-lived and selling pressure returned, pushing Nifty back to 25,050 and Sensex to around 81,540 by the end of the week. On a weekly basis, the Sensex fell 2,032.65 points, or 2.43 percent, while the Nifty lost 645.7 points, or 2.51 percent.Reflecting the sharp correction, the market capitalization of BSE-listed companies fell by Rs 6,95,963.98 crore to Rs 4,51,56,045.07 crore, or $4.93 trillion, on Friday. During the week, the total market value fell by Rs 16,28,561.85 crore. Equity benchmarks Sensex and Nifty extended their decline on Friday to close around 1% lower as broad selling pressure intensified while the rupee fell to an all-time low against the US dollar. For the first time, the rupee fell intra-day to a level of 92 per dollar before showing a marginal recovery to close at 91.88.BSE Sensex fell 769.67 points, or 0.94 percent, to end at 81,537.70. The market breadth remained weak on the BSE with 2,989 stocks ending in the red, 1,229 rising and 143 closing unchanged.The NSE Nifty also ended sharply lower, falling 241.25 points, or 0.95 percent, to settle at 25,048.65. Markets fell sharply despite a strong start as sharp declines in several heavyweight stocks, including shares of Adani Group, intensified selling pressure during the session. Within the Sensex pack, stocks like Adani Ports, Eternal, IndiGo, Axis Bank, Bajaj Finserv, Power Grid, Bharat Electronics, State Bank of India, Maruti Suzuki India, Bajaj Finance, NTPC, Trent, Larsen & Toubro and Reliance Industries ended up as the biggest disappointments.

Why do stock markets crash?

The weak quarterly performance of index heavyweights such as ICICI Bank and HCL Technologies dampened market sentiment, reinforcing concerns that a sharp turnaround in earnings is still in the offing. At the same time, rising crude oil prices and a sharp decline in the rupee, which fell to a new low despite intervention from the Reserve Bank of India, heightened macroeconomic concerns related to inflationary pressures and the trade gap, said Gaurav Garg of the Lemonn Markets Desk.Market participants said sentiment was further undermined by a shift to safe-haven assets and continued foreign fund outflows, with the lack of strong domestic signals adding to the discomfort.Apart from this, one of the other factors cited as a result of which Indian equity markets underperformed global peers over the past year was the absence of major visible players in the artificial intelligence space. India has remained on the sidelines of the powerful AI-driven rally that has defined global stock markets in 2025, missing out on the gains seen in several major economies. On the other hand, AI winners like the US, China, Taiwan and South Korea have made significant gains.

What do experts say?

Mehul Kothari, DVP – Technical Research, Anand Rathi Shares and Stock Brokers said the decline is driven by continued FII outflows, weak Q3 earnings trends (particularly in IT and consumer sectors), continued rupee weakness, and lingering global trade-related uncertainties, which together offset intermittent positive global cues and kept sentiment firmly risk-off.Thomas V Abraham, research analyst at Mirae Asset ShareKhan also said markets were facing selling pressure fueled by continued FII outflows and profit-taking ahead of an extended weekend. “Market participants adopted a risk-averse stance due to the geopolitical risks posed by the stalled US trade talks and intensifying frictions between the US and Europe, with continued selling of foreign funds amplifying the broader downturn,” he told TOI.“Adani group shares represent roughly 2.93% of the total weight of the Nifty 50. Their substantial declines of 8-13% today amplified the index’s pullback of around 1%, outpacing positive moves in other areas during the deep sell-off of the session,” he said.According to a Reuters report, Adani group shares lost $12.5 billion in market capitalization after the US SEC sought court permission to issue a subpoena.Vinod Nair, head of research at Geojit Investments Limited believes that the direction of the market in the coming week is likely to be determined by global macroeconomic signals and domestic fiscal expectations. “Investors will closely monitor Fed guidance on the trajectory of rate cuts, while positioning may be influenced by anticipation around the Union Budget, especially any measures aimed at easing external trade pressures and supporting capital flows,” he said. “With the third quarter earnings season still underway, stock-specific moves are expected to remain prominent. Overall sentiment is likely to remain cautious, shaped by global developments, currency trends and earnings results, with selective opportunities emerging in segments supported by resilient domestic demand,” he added.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These views do not represent the views of The Times of India)