INDIA STOCKS-Indian shares log worst week in over 3 months as US tariff worries dent sentiment

By Bharath Rajeswaran and Vivek Kumar M

Jan 9 (Reuters) - Indian equity benchmarks fell for a fifth consecutive session on Friday and recorded their worst weekly drop in over three months as renewed concerns over U.S. tariffs rattled investors.

The Nifty 50 .NSEI fell 0.75% to 25,683.3, while the Sensex .BSESN slipped 0.72% to 83,576.24. The indexes lost about 2.5% each for the week.

Fifteen of the 16 major sectors fell during the week. Small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 lost 3.1% and 2.6%, respectively.

U.S. President Donald Trump has backed a bipartisan bill targeting countries doing business with Russia with up to 500% tariffs on imported goods, as per Republican Senator Lindsey Graham. India has been the second-largest buyer of Russian crude after China.

"If such extreme tariffs are enacted, the immediate effect would be volatility in sectors linked to U.S. trade, pressure on export competitiveness, and renewed caution in foreign investor flows," said Amit Jain, co-founder of Ashika Global Family Office Services, adding that it would increase risk pricing across equities, currencies and commodities.

The U.S. Supreme Court is expected to rule on the legality of Trump's tariffs later in the day.

Oil and gas stocks led losses among major sectors, with Reliance Industries RELI.NS sliding 7.4% for the week, its worst since October 2024, after the company said it is not expecting any Russian crude oil deliveries in January amid heightened tariff uncertainty.

Meanwhile, India's largest private lender and heaviest-weighted stock HDFC Bank HDBK.NS slid 6.3% for the week, its biggest in about two years, as its quarterly business update raised concerns over slower deposit growth. It dragged the banks index .NSEBANK by 1.5% for the week.

Clothing retailer Trent TREN.NS lost 9.9% during the week as softness in revenue growth continued in the December quarter, while jeweller Titan TITN.NS surged 3.7% on strong sales growth.

Manappuram Finance MNFL.NS fell 7.6% on the day after Reuters reported that the central bank raised objections to Bain Capital's plan to buy a controlling stake in the gold financier.

Investors will focus on U.S. jobs data, scheduled for release later in the day, as it could influence the Federal Reserve's future rate actions.