Indian equity benchmarks Sensex and Nifty50 on Friday extended their losing streak to the second day, dragged by foreign outflows and sustained pressure on financial stocks following Bajaj Finance’s Q1 earnings.
The BSE Sensex closed the day at 81,463.09, down 721.08 points, or 0.88 per cent. The NSE Nifty50 fell 225.10 points, or 0.90 per cent, to settle at 24,837.
Among Sensex stocks, Bajaj Finance dropped 4.78 per cent to Rs 913.20, leading the Sensex losers. Power Grid Corporation of India followed with a 2.61 per cent fall. Other losers included Tech Mahindra (down 2.56 per cent), Bajaj Finserv (down 2.26 per cent), Infosys (down 2.22 per cent), and Trent (down 2 per cent).
Infosys, Bajaj Finance, Reliance Industries, HDFC Bank and Larsen & Toubro were the top contributors to the Sensex’s decline. Among sectoral indices, the BSE Bankex index fell 0.78 per cent, or 498.68 points, to end at 63,043.13. The BSE IT declined 1.65 per cent, or 588.05 points, to close at 35,100.90.
Vinod Nair, Head of Research at Geojit Investments Limited, said that subdued corporate results and lacklustre global cues triggered a broad-based sell-off across domestic equities. Elevated valuations in large-cap stocks, coupled with significant net short positions held by FIIs, added to the downward pressure.
“Investor sentiment remained fragile amid ongoing uncertainty over U.S.-India tariff negotiations and the ECB maintaining the status quo, with rate cuts deferred until clearer insights emerge on the inflationary impact of trade developments. Moderation in DII inflows after the strong buying of the last 2-3 months due to a muted earnings season and persistent FII selling continues to impact the current market,” Nair said.
Bajaj Finance’s shares fell 4.78 per cent to Rs 913.20 after the NBFC reported a 20.13 per cent YoY increase in consolidated net profit at Rs 4,699.61 crore in Q1 compared with Rs 3,911.98 crore in the same quarter last year.
Sona BLW Precision Forgings Ltd (Sona Comstar) shares settled at Rs 471.20, down 3.92 per cent. The stock fell after Rani Kapur, the mother of the late Chairman Sunjay Kapur, asked for a two-week deferment of today’s Annual General Meeting (AGM).
Ajit Mishra – SVP, Research at Religare Broking Ltd said the markets extended their decline on Friday, losing nearly a percent amid weak global cues. Benchmark indices remained under pressure from the outset, largely due to disappointing earnings, with the situation worsening as the session progressed.
“As a result, the Nifty slipped below its immediate support at 24,900 and settled at 24,837. Sectorally, most indices ended in the red, mirroring the broader market trend, with energy, metal, and auto being the top losers. The sharp decline in the broader indices—midcap and smallcap, fell between 1.63 per cent and 2.16 per cent and further dampened sentiment,” Mishra said.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities said the benchmark Nifty index has continued its downward trajectory, extending its losing streak for the fourth consecutive week.
“This persistent weakness can be attributed to a combination of factors — the absence of strong positive triggers, Q1 earnings from key corporates coming below expectations, and lingering uncertainty on the global trade deal front, all of which have dampened investor sentiment,” Shah said
“During the week, the index made a feeble attempt to rebound from the crucial support zone; however, the recovery lacked conviction and fizzled out quickly. On Wednesday, Nifty managed to close above its 20-day EMA, briefly reviving hopes of a turnaround. But the optimism was short-lived, as renewed selling pressure dragged the index back into negative territory,” Shah added.
Out of 4,154 stocks traded on BSE today, 1,140 advanced, 2,871 declined, and 143 remained unchanged.
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