Bloodbath on D-Street! Investors lose over Rs 16 lakh crore this week as Nifty, Sensex crash; market down 5% from lifetime highs

The week started with heavy selling, dragging Nifty close to 25,000 and Sensex below 81,500, followed by a brief mid-week rebound where Nifty recovered to around 25,290 and Sensex moved above 82,300.

However, the recovery was short-lived, and selling pressure returned, pushing Nifty back near 25,050 and Sensex to around 81,540 by the end of the week. On a weekly basis, the Sensex declined 2,032.65 points, or 2.43 per cent, while the Nifty shed 645.7 points, or 2.51 per cent.Reflecting the sharp correction, the market capitalisation of BSE-listed companies dropped by Rs 6,95,963.98 crore on Friday to Rs 4,51,56,045.07 crore, or $4.93 trillion.

Over the course of the week, total market value eroded by Rs 16,28,561.85 crore. Equity benchmarks Sensex and Nifty extended their slide on Friday, closing around 1% lower as broad-based selling pressure intensified alongside the rupee sinking to an all-time low against the US dollar.

For the first time, the rupee depreciated to a level of 92 per dollar intra-day, before showing a marginal recovery to close at 91.88.BSE Sensex dropped 769.67 points, or 0.94 per cent, to finish at 81,537.70.

Market breadth remained weak on the BSE, with 2,989 stocks ending in the red, 1,229 advancing and 143 closing unchanged.The NSE Nifty also ended sharply lower, falling 241.25 points, or 0.95 per cent, to settle at 25,048.65. Markets slipped sharply despite a firm start, as steep declines in several heavyweight stocks, including shares of the Adani Group, amplified selling pressure through the session.

Within the Sensex pack, stocks such as 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 as the major drags.

Why are stock markets crashing?

Muted quarterly performances from index heavyweights such as ICICI Bank and HCL Technologies dampened market mood, strengthening concerns that a strong turnaround in earnings remains distant.

At the same time, rising crude oil prices and a sharp slide in the rupee, which slipped to a new record low despite intervention by the Reserve Bank of India, intensified macroeconomic worries 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 towards safe-haven assets and persistent foreign fund outflows, with the absence of any strong domestic cues adding to the unease.Apart from this, one of the other cited factors for Indian stock markets lagging compared to global peers over the last year has been the absence of any major visible players in the field of artificial intelligence. India has remained on the sidelines of the powerful AI-driven rally that has shaped global equity markets in 2025, missing out on gains seen across several major economies.

On the other hand AI winners like the US, China, Taiwan and South Korea gained substantially.

What are experts saying?

Mehul Kothari, DVP – Technical Research, Anand Rathi Shares and Stock Brokers says that the decline is driven by persistent FII outflows, weak Q3 earnings trends—especially in IT and consumption sectors—continued rupee weakness, and lingering global trade-related uncertainties, which collectively outweighed intermittent positive global cues and kept sentiment firmly risk-averse.Thomas V Abraham, Research Analyst, Mirae Asset ShareKhan also said that markets faced selling pressure fueled by ongoing FII outflows and profit-taking before an extended weekend.

“Market participants adopted a risk-averse posture due to geopolitical risks stemming from stalled US trade talks and intensifying US-Europe frictions, with overseas funds’ persistent selling magnifying the broader downturn,” he told TOI.“Adani group stocks represent roughly 2.93% of the Nifty 50’s total weight.

Their substantial 8-13% declines today magnified the index’s roughly 1% retreat, outpacing positive moves in other areas during the session’s pervasive sell-off,” he said.According to a Reuters report, Adani group stocks shed $12.5 billion in market capitalisation after the US SEC sought court nod to issue summons.Vinod Nair, Head of Research, Geojit Investments Limited is of the view that the market direction in the coming week is likely to be driven by global macroeconomic signals and domestic fiscal expectations.

“Investors will closely track guidance from the Fed on the trajectory of interest rate cuts, while positioning may be influenced by anticipation surrounding the Union Budget, particularly any measures aimed at easing external trade pressures and supporting capital flows,” he says.

“With the Q3 earnings season still underway, stock-specific movements are expected to remain prominent.

Overall sentiment is likely to stay cautious, shaped by global developments, currency trends, and earnings outcomes, 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 opinions do not represent the views of The Times of India)