The equity markets extended their losing streak on Friday as concerns over rich valuations and global uncertainties triggered a broad-based sell-off, with 219 stocks hitting their 52-week lows on the National Stock Exchange. The 30-share BSE Sensex fell 241.30 points or 0.31 per cent to close at 77,378.91, while the broader NSE Nifty declined 95 points or 0.40 per cent to end at 23,431.50.

Adding to market woes, the rupee breached the crucial 86-mark against the US dollar for the first time, declining 14 paise to close at an all-time low of 86.00. The decline came amid strengthening of the dollar and significant foreign fund outflows.

IT stocks emerged as the lone bright spot, with TCS leading the gains, surging 5.60 per cent to ₹4,265. Other IT majors also saw substantial gains, with Tech Mahindra rising 3.59 per cent to ₹1,701.8, HCL Technologies advancing 3.22 per cent to ₹1,997.1, Infosys climbing 2.53 per cent to ₹1,965.8, and Wipro gaining 2.51 per cent to ₹299.65.

However, the broader market witnessed significant selling pressure. Among the top losers, Shriram Finance dropped 5.30 per cent to ₹532.15, followed by IndusInd Bank falling 4.29 per cent to ₹938.8, Adani Enterprises declined 3.95 per cent to ₹2,380.1, NTPC dropped 3.79 per cent to ₹308.2, and BEL slipped 3.72 per cent to ₹270.8. The session saw 181 stocks hitting their lower circuit limits, compared to 41 reaching upper circuits.

“Domestic market sentiment remained subdued due to rising crude oil prices, driven by supply concerns, and a strengthening dollar index. Despite the IT sector’s resilience following positive early Q3 results, the broader indices bled due to uncertainties surrounding Trump’s policies and high valuations,” said Vinod Nair, Head of Research at Geojit Financial Services.

Selling pressure was more pronounced in the broader market, with the Nifty Next 50 falling 1.98 per cent and Nifty Midcap Select declining 1.59 per cent. The banking sector also faced significant pressure, with Nifty Bank dropping 1.55 per cent to 48,734.15.

Shrikant Chouhan, Head Equity Research at Kotak Securities, noted, “The Indian equity markets underperformed most of the global markets. The correction was more severe in the midcap and small cap stocks. Almost all major sectors saw a decline this week, with BSE Capital Goods, BSE Power and BSE Reality indices witnessing weekly loss in excess of 5 per cent.”

Foreign institutional investors (FIIs) remained net sellers, offloading ₹7,170.87 crore in the capital markets on Thursday. Meanwhile, global oil benchmark Brent crude futures surged 1.96 per cent to $78.43 per barrel.

The market volatility index, India VIX, rose 1.75 per cent to 14.92, indicating increased uncertainty. The total trading volume stood at 2,610.22 lakh shares, with a value of ₹25,01,748.78 lakh.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said, “The markets continued their downward trajectory with rupee scaling new lows due to a strengthening dollar, which has further dampened investor ’ sentiment. With expensive valuations of Indian markets at large still a concern, investors would mostly resort to stock specific activities.”