Sensex, Nifty slide nearly 1% as falling rupee, global tensions spark risk-off trade

Mumbai: India's equity benchmarks slid nearly 1% on Friday, bringing an end to a bruising week, as fresh record lows in the rupee and simmering geopolitical tensions deepened the risk-off mood. Adani Group shares led the sell-off after the US Securities and Exchange Commission(SEC) reportedly asked an American court for permission to personally email summons to the conglomerate's founder Gautam Adani and nephew Sagar Adani over alleged fraud and a $265 million bribery scheme. The NSE Nifty closed at 25,048.65, down 241.25 points or 1%-the lowest closing level since October. The BSE Sensex ended 769.67 points, or 1%, lower at 81,537.70.Both gauges declined 2.5% for the week. 127348723 Global Uncertainty Takes Toll The total market capitalisation for BSE listed companies dropped by over ₹16 lakh crore during the week. Elsewhere in Asia, South Korea rose 0.8%, and Taiwan gained 0.7%. Hong Kong added 0.5%, while China and Japan advanced 0.3% each. "The global uncertainty crushed investor sentiment, and incremental buyers remained on the sidelines as they feared catching a falling knife," said Pankaj Tibrewal, founder and CEO, Ikigai Asset Manager. Donald Trump's fresh warning that a US "armada" is heading toward Iran intensified worries about a military conflict in the Middle East, sending oil prices and safe-haven assets such as gold and silver surging. Brent crude futures rose 1.8% to $65.2 a barrel on Friday. Gold futures were up 0.3% and silver rose 2.9% to record highs. The rupee weakened to a record low of 91.8 against US dollar on Friday. Foreign portfolio investors (FPIs) sold a net ₹4,113.4 crore of equities, while domestic institutional investors bought ₹4,102.6 crore. In January so far, FPIs have offloaded ₹34,192.5 crore of shares. MID-CAP WOES The pressure was greater on the broader markets. The Nifty Mid-cap 150 index fell 1.7%, while the Small-cap 250 shed 2%. Out of the 4,361 shares traded on the BSE, 1,229 advanced and 2,989 declined. Over the past week, the mid-cap gauge dropped 4.4% and the small-cap index slid 5.5%. "The fall is steeper on a stock-specific basis even with lower volumes, which indicates weakness in the market," said Tibrewal. "Among the NSE 500 stocks, the median stock return is down 28% from their one-year highs."