Nifty, Sensex See Biggest Weekly Decline In Seven Months As Pharma, IT Stocks Drag

A late correction on Friday dragged the benchmark Indian indices to their biggest intra-day declines in a month.

The Nifty 50 index closed 0.95% lower at 24,654.7, while the Sensex declined 0.9% to end at 80,426.46. This marked the sixth consecutive session of declines. On a weekly basis, the Nifty 50 index shed 2.65%, its biggest drop in seven months.

While every sectoral index closed in the red, IT and pharmaceutical stocks saw the biggest selling pressure. Pharma stocks fell after U.S. President Donald Trump declared a 100% tariff on branded and patented pharmaceutical products starting October 1.

Retail sentiment for the Nifty 50 index remained 'neutral' on Stocktwits. It was 'bullish' a week back.

Stock Watch

Notably, 44 of the 50 constituents of the Nifty 50 ended in the red. IndusInd Bank (-3.9%), Mahindra & Mahindra (-3.8%), and Tata Steel (-2.9%) were the biggest laggards, while L & T (+2.7%) and Tata Motors (+1.45%) held firm in a weak market. Jaguar Land Rover (JLR) began a“phased restart” of its operations with parts of its IT system back up and running, after a cyberattack had suspended operations since the beginning of the month.

Shares of debt-ridden telecom operator Vodafone Idea fell as much as 9% after the Supreme Court deferred its Adjusted Gross Revenue (AGR) dues hearing to October 6.

Waaree Energies' price fell over 7% following reports that the U.S. is investigating the company for allegedly evading antidumping and countervailing duties on solar cells.

Rites climbed nearly 2% in morning trade after it signed a contract with South Africa-based Talis Logistics to supply diesel-electric locomotives worth $18 million. However, the stock failed to hold firm in the late sell-off and ended 2.1% lower.

Shares of Hindustan Aeronautics (HAL) closed 0.9% lower despite bagging a massive ₹62,370 crore order from the Ministry of Defence for 97 Tejas Mk-1A fighter jets. 

Analysts Take

SEBI-registered analyst Ashish Kyal noted that despite being in oversold territory, the Nifty 50 index has failed to show any meaningful pullbacks, with the mid-hourly Bollinger Bands acting as resistance.

Kyal recommends holding off on buying unless the index moves above 24,990, while support remains near the Gann magnet level of 24,728.

Another SEBI-registered analyst, Varunkumar Patel, highlighted that technically, the Nifty has fallen below the critical 25,000 mark, with the next support at 24,750. Given the tariff shock, even this level appears vulnerable, and a breach could trigger further short-term declines.

The market stance remains cautious and defensive. With aggressive FII short positions and ongoing global and domestic headwinds, traders are advised to avoid over-leveraging, stick to strict stop-losses, and refrain from high-risk trades until the situation becomes clearer, he added.

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