Indian stock markets faced a rough ride on Friday, snapping a winning streak as geopolitical tensions and profit booking triggered heavy selling. With major indices like the Nifty and Sensex sliding sharply, investors turned cautious after a deadly attack in Kashmir raised concerns over escalating regional risks.
Market Trends: Sensex, Nifty Take a Hit
The Nifty slipped below the 24,050 mark, shedding 207 points, or 0.86%, to close at 24,039. Meanwhile, the Sensex tumbled 588 points, or 0.74%, finishing at 79,212. Notably, intraday volatility was intense — the Sensex swung over 1,525 points, and the Nifty lost as much as 518 points from session highs.
Investor wealth took a significant blow, with BSE’s total market capitalization dropping by a staggering Rs 8.8 lakh crore, settling at Rs 420.83 lakh crore by the end of the day.
Bank Rally Stalls, Auto Stocks Hold Ground
Financials bore the brunt of Friday’s selloff. Axis Bank, SBI, and Bajaj Finance were among the top laggards, heavily weighing down the Sensex. Axis Bank led the slide after reporting a minor dip in quarterly profits, unsettling market expectations. Kotak Bank, HDFC Bank, and ICICI Bank also saw notable declines, with financial stocks collectively pulling the Sensex down by over 360 points.
Meanwhile, auto stocks showed relative resilience amid the broader downturn. While not immune to profit-taking, key players in the auto sector managed to limit their losses, reflecting continued optimism around upcoming quarterly sales data.
| Top Losers | Sector | Impact on Sensex |
|---|---|---|
| Axis Bank | Financial | Major Drag |
| SBI | Financial | Significant Drag |
| Bajaj Finance | Financial | Major Drag |
Valuation Jitters and Earnings Disappointments
After a stunning 8.6% rally across seven straight sessions, some cooling off was inevitable. The market, now grappling with valuation worries, showed signs of fatigue as several heavyweight firms delivered underwhelming quarterly results.
Hindustan Unilever missed revenue expectations, while Axis Bank’s subdued earnings only added to the cautious mood. The IT sector also dragged sentiment lower, with companies like Infosys and Wipro issuing soft guidance. Meanwhile, analysts are trimming earnings projections for FY26 and FY27, signaling a more restrained market outlook moving forward.
Global cues provided little relief. Although Asian markets held steady on hopes of easing U.S.-China tensions and strong results from Alphabet, Indian equities couldn’t shake off domestic pressures. Foreign investors, however, continued to show faith, pumping Rs 8,251 crore into local stocks on Thursday, marking the seventh consecutive day of net inflows.