Indian stock market loses $25 billion in four-day selloff

India's stock markets extended their downward trajectory on Friday, marking the fourth consecutive day of losses that has rattled investor confidence across the region. The decline wiped out roughly ₹20.79 lakh crore ($25 billion) in market capitalisation from companies listed on the Bombay Stock Exchange, underscoring the scale of the current sell-off.

The benchmark Sensex index fell 1,605 points during the week, reflecting broader concerns about macroeconomic headwinds affecting the South Asian financial hub. Analysts attributed the persistent weakness to a combination of factors that have converged to dampen market sentiment at a critical juncture in the Indian economic calendar.

Geopolitical tensions in West Asia have emerged as a primary concern for market participants, with escalating regional instability raising questions about global economic stability and trade flows. Compounding these worries, crude oil prices have surged amid the regional uncertainty, threatening to push up inflation and potentially narrow corporate profit margins across multiple sectors of the Indian economy.

The sustained decline has prompted retail and institutional investors alike to reassess their portfolio positioning, with some shifting toward defensive assets amid the heightened volatility. Market observers cautioned that the current sell-off reflected legitimate concerns about external risks that could affect India's growth trajectory in the coming quarters.