FX.co ★ Indian Stocks Remain Weak

India's BSE Sensex concluded Friday's trading session with a decline of approximately 0.3%, settling at 79,809.65—the lowest level observed since early May. This marks the third day in a row of declining performance. Investor sentiment remains pressured by ongoing foreign capital outflows and growing unease over the substantial US tariffs on Indian exports announced earlier this week. Economists caution that the new 25% tariff on Indian goods, elevating the total duty to 50%, could potentially reduce India's GDP growth by 60 to 80 basis points if sustained for a year. Today, market participants focused on India's second-quarter GDP figures and a significant US inflation report. In the equities market, Mahindra & Mahindra led the downward trend with an almost 3% fall, closely followed by Reliance Industries, which decreased by 2.3%. Other notable decliners included Infosys, NTPC, Tata Motors, and Tech Mahindra. Conversely, ITC, Bharat Electronics, Trent, and Larsen & Toubro recorded gains. Over the week, the index experienced a 1.8% reduction, marking its first weekly decrease in three weeks. Additionally, it registered a 1.7% fall in August, indicating a second consecutive month of decline.