The BSE Sensex closed about 0.6% down at 75,311 on Friday, its lowest level since early June an marking the fourth straight session of losses, dragged down by shares of banking, financial, pharma and automobile companies. Market sentiment remained downbeat, with rising concerns over potential US tariffs on Indian goods leading to capital outflows. Moreover, investor worries grew over the hawkish stance in the FOMC minutes, suggesting prolonged high interest rates could restrict liquidity in emerging markets. On the domestic economic front, India’s private sector output reached a six-month high in February, driven by a sharp expansion in services activity, according to the latest HSBC Flash PMI data. For the week, the index lost about 0.8%, marking its second consecutive decline amid persistent concerns over a potential global trade war.
US stocks plunged on Friday as economic data raised concerns about a slowing US economy and persistent inflation, prompting investors to seek safer assets. The S&P 500 lost 1.7%, and the Nasdaq 100 slipped 2.1%, while the Dow Jones plunged 748 points, marking its biggest loss of the year. UnitedHealth shares plunged 7.2% following reports that the Department of Justice is investigating its Medicare billing practices, making it the worst-performing Dow component. Consumer sentiment also took a hit, with the University of Michigan’s index falling to 64.7, reflecting growing concerns over inflation, which consumers now expect to rise to 4.3% in the coming year. The slide followed Walmart's (-2.5%) disappointing outlook and broader fears about the impact of President Trump's tariff policies. On the week, the S&P 500 dropped by 1.6%, while the Dow and Nasdaq slipped 2.5% and 2.4%, respectively.
The DAX failed to hold onto early gains and closed 0.1% down at 22,287.6 on Friday, its lowest in over a week and underperforming its regional peers. While digesting mixed corporate earnings and weak economic data, traders grew more cautious ahead of Germany's snap election on Sunday. Economic concerns persist, but the campaign has centered on migration, crime, and Germany’s involvement in the Ukraine conflict. Right-wing opposition parties continue to lead in the polls, with the conservative Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), ahead, followed by the far-right Alternative for Germany (AfD). Meanwhile, incumbent Chancellor Scholz's SPD ranks third. On the data front, a fresh PMI survey showed German private-sector performance exceeded expectations in February. Siemens Energy, Airbus and MTU Aero Engines were the top losers among stocks, while BASF and Volkswagen saw the biggest gains. For the week, the index fell about 1%.
