Indian stock markets extended their weekly losses on Friday, with both benchmark indices slipping nearly 1% as weak investor sentiment and uncertainty over the much-awaited India–US trade deal continued to weigh on sentiment.

The Nifty 50 opened at 25,433.80, down 75.90 points or 0.30%, while the BSE Sensex began the session at 83,150.15, lower by 160.86 points or 0.19%.

Market experts attributed the persistent weakness in domestic equities to external headwinds and the absence of strong market cues.

Ajay Bagga, Banking and Market Expert, told ANI, “Indian markets are under sustained pressure and lack clear direction. President Trump’s recent comment about his upcoming visit to India has revived hopes for a trade deal, but similar optimism earlier this year, especially in June, proved misleading. We need more clarity, especially since India’s Trade Minister mentioned yesterday that ‘serious and sensitive issues’ remain unresolved in the negotiations.”

Selling pressure was broad-based, with all major indices under strain. The Nifty 100 fell 0.52%, the Nifty Midcap 100 dropped 0.37%, and the Nifty Smallcap 100 lost 0.71%.

Among sectors, most traded in the red. Nifty Auto slipped 0.3%, Nifty FMCG fell 0.51%, Nifty IT declined 0.67%, Nifty Metal shed 0.73%, and Nifty PSU Bank dropped 0.39%. The only gainer was Nifty Pharma, up 0.15%.

In the primary market, investor interest remained firm. On the final day of bidding, the Groww IPO by Billionbrains Garage Ventures was subscribed 1.6 times, driven by strong demand from institutional investors (2.3 times), retail investors (5 times), and Qualified Institutional Buyers (20%). Meanwhile, the Studds IPO is set to list today.

Global cues were also negative, as US markets came under renewed pressure amid concerns over stretched AI-related valuations. Tesla shareholders recently approved a USD 1 trillion compensation package for Elon Musk—viewed as a sign of confidence in leadership stability but also heightening fears of a potential tech bubble.

Additionally, the ongoing US government shutdown continues to dent sentiment, with reports suggesting around 10% of flights have been grounded since Friday, disrupting nearly 1,800 flights across major airports.

Asian markets mirrored Wall Street’s weakness. Japan’s Nikkei 225 slid 2.23%, Hong Kong’s Hang Seng dropped 1%, Taiwan’s Weighted Index fell 0.62%, and South Korea’s KOSPI lost 2.43%. Singapore’s Straits Times, however, edged up 0.13%.

Overall, a combination of global uncertainty, unresolved trade negotiations, and external pressures continues to dampen investor confidence in Indian markets.