Indian shares fell on Friday as concerns over potential new U.S. tariffs weighed heavily on investor sentiment. The BSE Sensex dropped 1.2%, while the broader NSE Nifty fell by 1.3%. The decline was largely influenced by renewed fears that the United States might impose additional tariffs on imports.
Everyone is hoping for a bounce but hope is not a data point.
So here is a data point then 👉Nifty is on a 8 session losing streak.
What does history suggest happens in flowing week to Nifty 🤔 @SAMCO_India https://t.co/vTxhXt3zik
— Nigel D'Souza (@Nigel__DSouza) February 14, 2025
This move could affect global trade dynamics and impact emerging economies like India.
#MarketAlert | US markets open: #GoDaddy shares slide 8.9%, the most intraday since Nov 2022 pic.twitter.com/KgTIXtISV4
— ET NOW (@ETNOWlive) February 14, 2025
A broker at a leading brokerage firm in Mumbai remarked, “The market is reacting to uncertainties surrounding US trade policies. There is a palpable sense of caution among investors.”
#MarketAlert | Here's the list of the Top 5 Nifty losers on WTD basis👇#Nifty #StockMarket pic.twitter.com/LFIBufcN1y
— ET NOW (@ETNOWlive) February 14, 2025
The trading volumes were also lower than average as investors remained on the sidelines awaiting more clarity on the U.S. tariff situation.
Several sectors, including technology and automotive, were among the most affected. Despite the day’s downturn, analysts remain cautiously optimistic about the long-term outlook for Indian equities.
#StockMarket Today Live Updates: #Sensex Jumps Over 300 Points, Nifty Tops 23,100; Senco Gold Tanks 12%https://t.co/RO04iewAsA
— News18 (@CNNnews18) February 14, 2025
One market expert commented, “While the near-term could be volatile due to global trade tensions, the underlying fundamentals of Indian companies remain strong.”
The market will closely watch upcoming global economic discussions and any further announcements from the U.S. administration regarding trade tariffs.
Over the past five months, India’s equity markets have experienced significant turbulence. After reaching all-time highs in September 2024, key indices have seen a sharp correction. The Nifty 50 Total Return Index (TRI), Nifty Midcap 150 TRI, Nifty Small-cap 250 TRI, and Nifty Microcap 250 TRI declined by 11 percent, 16 percent, 19 percent, and 16 percent, respectively, during this period.
The small and mid-cap segments witnessed a substantial sell-off, especially during the recent market downturn. Disappointing Q3 earnings, persistent Foreign Institutional Investor (FII) sell-offs, and higher valuations have negatively impacted investor sentiments. Equity mutual fund schemes that invested heavily in small-cap stocks saw significant erosion in their Net Asset Value (NAV).
Among the small-cap categories, Mahindra Manulife Small Cap, Aditya Birla SL Small Cap, and Quant Small Cap corrected the most, falling by 22 percent, 20 percent, and 19 percent, respectively. Mid-cap schemes were also affected, with HSBC Midcap, Bandhan Midcap, and Quant Mid Cap experiencing the steepest declines.
Us tariff impact on Indian stocks
Approximately one-fifth of the small-cap stocks held by mutual funds corrected by more than 25 percent over the last five months. The ongoing market volatility has particularly impacted mutual funds focused on small-cap stocks. With the market showing signs of continued instability, investors are advised to remain cautious and consider the potential long-term impacts on their portfolios.
In the five trading sessions leading up to February 14, the BSE Sensex index posted a weekly decline of 2.47%, with losses recorded across all five sessions. Amid this broader market downturn, several smallcap stocks experienced sustained declines. NGL Fine-Chem topped the list of decliners, plunging 41.31% over the week and closing at Rs 1101.60.
Natco Pharma declined by 32.99% during the week, with the stock ending at Rs 883.70. Excel Industries slumped 32.79% this week, ending at Rs 923.25. Orchid Pharma fell 32.67% over the week, mirroring the broader market correction and closing at Rs 945.45.
WPIL Ltd faced heavy selling pressure, recording a 32.25% drop during the week and wrapping up trading at Rs 398.75. Tilaknagar Industries suffered a 30.88% weekly decline, ending the week at Rs 253.45. Banco Products (India) shed 30.58% this week, struggling amid a bearish trend in the broader market and closing at Rs 320.10.
Senco Gold declined by 28.21% over the past five trading sessions, closing the week at Rs 357.60. Suyog Telematics registered a 28.15% drop over the week, ending at Rs 1046.55. Concord Biotech saw a weekly decline of 27.71%, with the stock closing at Rs 1693.20 on the BSE at the end of the week.
The sharp declines in these smallcap stocks reflect the broader market weaknesses and the increased volatility seen in recent trading sessions. Investors should exercise caution and consider the underlying fundamentals before making investment decisions.
