The Indian stock market extended its decline for a second straight session on Friday, as concerns over weak corporate earnings, lofty valuations and trade tensions continued to weigh on investor sentiment. The Nifty 50 slipped below the 25,000 mark; and, the Sensex shed 502 points to end at 81,757.73. The total market capitalisation of BSE-listed firms shrank by nearly ₹3 lakh crore in a single day.
Over the past three weeks, both benchmark indices have lost close to 3 percent each.
A disappointing start to the Q1 earnings season, elevated valuations in large-cap stocks, and persistent foreign fund outflows were the key drivers of the day’s losses. Sentiment was also dampened by lingering uncertainty over an India-US trade agreement and potential tariff implications involving Russia.
“A broad-based selloff was observed amidst an underwhelming earnings performance from finance and IT majors. Significant net short positions by foreign institutional investors (FIIs), alongside valuation concerns, added to the caution. Additional tariff threats are weighing on sentiment,” said Vinod Nair of Geojit Financial Services.
The Nifty 50 closed at 24,968.40, down 143 points or 0.57 percent, while the Sensex shed 502 points or 0.61 percent. The BSE Midcap index fell 0.62 percent, and the Smallcap index slipped 0.64 percent.
Investor wealth declined sharply, with the market capitalisation of all BSE-listed companies dropping from around ₹461 lakh crore to ₹458 lakh crore — a single-session erosion of nearly ₹3 lakh crore.
Most sectoral indices closed in the red. The Nifty Bank and Financial Services indices both fell nearly 1 percent, with the Private Bank index tumbling 1.46 percent. PSU Banks lost 0.66 percent. Only Nifty Media (up 0.96 percent), Metal (up 0.37 percent), and IT (flat) managed to buck the trend.
Wipro (up 2.21 percent), Bajaj Finance (up 1.97 percent), and Tata Steel (up 1.63 percent) were the top gainers in the Nifty 50 index.
Axis Bank was the biggest laggard, slipping 5.27 percent. Shriram Finance fell 3.06 percent, while BEL dropped 2.38 percent. In total, 33 of the 50 Nifty stocks ended in the red.
Vodafone Idea led the volume charts with 28.52 crore shares changing hands, followed by Jaiprakash Power Ventures (19.19 crore) and GTL Infrastructure (11.33 crore).
Astec LifeSciences-RE, Viji Finance, Bhagyanagar India, Gujarat Mineral Development Corporation, Manali Petrochemicals, Vimta Labs and Cupid surged over 10 percent on the NSE.
As many as 66 stocks hit their upper circuit limits on the NSE, including Prostarm Info Systems, Rajoo Engineers, Vertoz, Rama Phosphates, and Felix Industries. Meanwhile, 33 stocks hit their lower circuits, including Diamond Power Infrastructure and Venus Remedies.
With valuations still stretched and global trade concerns unresolved, analysts expect markets to remain volatile in the near term. Further clarity on earnings and external policy developments may be required to trigger a sustained rebound.
(By arrangement with livemint.com)