India’s Nifty 50 logs steepest weekly drop in four months on tepid earnings, foreign outflows

Indian shares fell on Friday and posted weekly losses as sustained foreign outflows and a mixed earnings season outweighed relief from easing geopolitical tensions linked to Greenland.

The Nifty 50 fell 0.95% to 25,048.65, while the BSE Sensex lost 0.94% to 81,537.70. The 50-stock index fell 2.5% for the week to mark its biggest weekly drop in four months, while 30-stock Sensex fell 2.4%.

Adani group companies fell 3.4%-14.5% on Friday and led losses after the U.S. markets regulator asked a court for permission to personally email summons to founder Gautam Adani and group executive Sagar Adani over alleged fraud and a $265 million bribery scheme.

All 16 major sectors declined during the week, while the small- and mid-cap indexes and fell 5.8% and 4.6%, respectively.

Uncertainty over India-U.S. trade talks continued to weigh on sentiment and foreign investor flows.

“Markets are struggling to find their footing as unresolved trade talks with the U.S. have triggered panic-driven foreign outflows, keeping risk appetite muted,” said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management.

Foreign portfolio investors have sold Indian equities worth $3.5 billion so far in January, putting them on track for their steepest monthly exodus since August.

A mixed earnings season has weighed on markets, with investors awaiting the federal budget due on Feb. 1 for measures to support economic growth, said two analysts.

Heavyweight Reliance Industries fell 4.9% for the week after missing third-quarter profit estimates, dragged by slower growth in its retail business.

Private lender ICICI Bank lost 4.8% over the week after missing profit expectations due to higher provisions following a supervisory review.

Drugmaker Cipla fell 4% on Friday, extending weekly losses to 5.9% after a sharp drop in quarterly profit.

Airline operator InterGlobe Aviation dropped 4.2% on the day as its third-quarter profit plunged due to mass flight cancellations.

Indian markets will be closed on Monday for Republic Day and will resume trading on Tuesday.