Indian Stocks Suffer Largest Weekly Drop

India's equity benchmark indices, the BSE Sensex and NSE Nifty, faced their steepest weekly declines in over two years, plummeting nearly 5% each amid global market volatility and negative sentiment triggered by the US Federal Reserve's cautious stance on future rate cuts. The Sensex closed at 78,041.59, down 1.49%, while the Nifty fell to 23,587.50, marking a significant drop that erased nearly all gains from previous months. The broader market was heavily impacted, with a loss of approximately ₹18 lakh crore in market capitalisation, as foreign institutional investors increased selling amidst rising US bond yields. Losses were widespread, particularly in mid and small-cap segments, while Dr. Reddy's Laboratories emerged as one of the few gainers amidst the turmoil. The market's downturn was compounded by disappointing performance in sectors such as IT and banking, with major players like TCS experiencing significant declines. Analysts suggest that the bearish outlook is likely to persist as investors grapple with high valuations and low earnings growth.