India’s BSE Sensex slipped nearly 2% to close at 74,563.9 on Friday, a low level last seen in March 2025, extending losses for the third session. Investor confidence stayed weak, reflecting uncertainty in global energy markets amid a second week of unresolved Middle East tensions. Sustained foreign outflows have added to market pressure, with overseas funds reducing their exposure amid rising global risks. Foreign investors have offloaded around $49 billion of Indian stocks so far this month, marking the largest outflow since January 2025. Looking at sectors, losses were broad-based. On equities, Larsen & Toubro (-7.5%), Tata Steel (-5.2%), UltraTech Cement (-4.4%), SBI (-3.6%), Maruti (-3.3%) and Bharat Electronics (-3.1%) were among the prominent laggards. On the other hand, defensive stocks Hindustan Unilever and Bharti Airtel were the only gainers, rising 1.2% and 0.3%, respectively. The index lost over 5% for the week, registering its biggest weekly loss in four years.
Meanwhile, US equities finished a rough week lower with the S&P 500 down 0.6%, the Dow losing 0.3%, and Nasdaq 100 shedding 0.7% as they struggled to maintain their footing amid the intensifying regional conflict and persistent energy market volatility. Defense Secretary Pete Hegseth signaled a further escalation on Friday by announcing the largest wave of US strikes against Iranian targets, cementing the blockade of the Strait of Hormuz and stoked fears of a prolonged stagflationary global environment. This pressure drove investors toward the dollar, pushing major benchmarks toward a third straight week of losses while high energy costs forced markets to reprice 2026 rate expectations. Yields climbed despite weak Q4 GDP, heavily pressuring credit-sensitive sectors. Software giants led the decline, notably Adobe plunging 7.6% after a guidance miss and CEO departure, while Meta, Palantir, and Oracle dropped between 3.8% and 1.7%.
