The equity benchmark indices Sensex and Nifty remained under selling pressure for the sixth straight session on Friday, weighed down by heavy selling in IT, pharma and PSU bank shares.
At around 1 p.m., the Sensex was trading 310.07 points or 0.38 percent lower at 80,849.61, while the broader Nifty declined to 24,770.80, down 120.05 points or 0.48 percent. Market breadth was negative as about 918 shares advanced, 2695 shares declined and 122 shares unchanged.
Sun Pharmaceutical Industries, Mahindra & Mahindra and IndusInd Bank were among the major laggards, declining up to 3 percent, while Larsen & Toubro and Tata Motors were among the top gainers in the Nifty pack, rising up to 4 percent.
Sensex has declined 2.73 percent and the Nifty 2.52 percent over the past six sessions, setting up the market for its steepest weekly fall since early April.
Sectorally, pharma, IT, metal and PSU bank indices were among the top losers.
Shares of major IT companies fell after a weak outlook from Accenture dampened investor sentiment, dragging the Nifty IT index more than 1 percent lower. Concerns over additional costs also weighed on the sector after the US imposed a fee of Rs 88 lakh on new H-1B visas.
Pharma stocks came under sharp selling pressure after US President Donald Trump announced a 100 percent tariff on branded and patented drug imports effective October 1, unless manufacturers establish production facilities in the country.
"Starting October 1, 2025, we will be imposing a 100 percent tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America," Trump posted on Truth Social. He added that construction in progress would exempt firms from the tariff.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,995.42 crore on Thursday. "The sustained FII selling may keep the market under pressure," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.
In the broader market, the Nifty Smallcap100 and Midcap100 indices extended their decline for a fifth straight session. The midcap index has lost 3.2 percent and the smallcap gauge about 4 percent over this period.
Ajit Mishra, Senior Vice President – Research, Religare Broking, said "the correction has deepened after the initial outperformance by the broader indices. Caution due to continued selling from the FIIs with noticeable weakness in rupee and uncertainity over the policy actions on the global front amid the ongoing trade tensions."
Pharma counters led the fall in smallcaps, with Neuland Laboratories and Natco Pharma dropping up to 4 percent. Only 13 of the 100 stocks in the Nifty Smallcap index traded in the green.
Among midcaps, Waaree Energies declined up to 6 percent after US customs authorities said they were investigating the company for suspected tariff evasion.
On the technical front, Anand James, Chief Market Strategist at Geojit Financial Services, said, "Being in the vicinity of the 20-day SMA, a pullback may be in order. However, if upswings are limited to 25,080, bears will retain the upper hand, forcing us to extend the week’s downside objective to 24,680."
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