Indian equity markets ended lower on Friday as investors reacted to weak Q1 earnings in the banking and IT sectors, coupled with sustained foreign institutional investor (FII) selling and global trade uncertainties.
The BSE Sensex fell 501.51 points, or 0.61 per cent, to close at 81,757.73, while the NSE Nifty declined 143.05 points, or 0.57 per cent, to settle at 24,968.40. The 30-share Sensex opened on a weak note at 82,193.62 and slipped further to an intra-day low of 81,608.13 amid broad-based selling, particularly in banking majors like Axis Bank, HDFC Bank, and Kotak Mahindra Bank.
Market sentiment was further dented by elevated valuations in large-cap stocks and aggressive net short positions held by foreign investors.
“A broad-based sell-off was observed in the market following a disappointing start to the earnings season in finance and IT,” said Vinod Nair, Head of Research at Geojit Financial Services. “Investors remained cautious due to high valuations and persistent FII outflows.”
From the Sensex pack, Axis Bank, BEL, Kotak Bank, HDFC Bank, Bharti Airtel, Titan, Tech Mahindra, and Asian Paints were among the top losers. On the other hand, Bajaj Finance, Tata Steel, ICICI Bank, and HCL Technologies ended in the green.
Out of the Nifty50 stocks, 33 declined while 17 advanced.
All key broader indices also ended in negative territory. The Nifty Next 50 dropped 486 points, Nifty Midcap 100 lost 414 points, and Nifty Smallcap 100 shed 157 points, reflecting widespread selling pressure.
Among sectoral indices, Nifty Bank declined nearly 1 per cent (545 points), Nifty FMCG fell 336 points, and Nifty Financial Services was down 253 points. Nifty IT, however, ended almost flat.
The rupee slipped 0.07% as rising oil prices put pressure on the Indian currency. Concerns over possible trade issues with Russia also affected investor confidence.
Experts suggest avoiding big risky trades for now. Instead, they recommend a careful and balanced approach, focusing on stocks that are showing strong results.
(IANS)
