The benchmark indices extended losses for the second straight session on Friday, weighed down by weak global cues and subdued corporate earnings, which dampened the investor sentiment. The indices fell up to 0.90%, marking their largest single-day decline since June 12.
The Sensex slumped 721.08 points, or 0.88%, to close at a one-month low of 81,463.09, while the Nifty dropped 225.10 points, or 0.90%, to end below the 25,000 mark at 24,837. The India VIX index rose 5.15% to 11.28.
Weak earnings, FII pressure
“Subdued corporate results and lacklustre global cues triggered a broad-based selloff across domestic equities. Elevated valuations in large-cap stocks, coupled with significant net short positions held by FIIs, added to the downward pressure,” said Vinod Nair, head of research at Geojit Financial Services.
The investor sentiment remained fragile amid ongoing uncertainty over US-India tariff negotiations and the European Central Bank maintaining a status quo on interest rates, deferring cuts until clearer insight emerges on the inflationary impact of trade developments, Nair said.
“The recent correction reflects growing concerns around earnings disappointments and cautious management commentary, which are weighing heavily on investor confidence,” said Ajit Mishra, SVP – research, Religare Broking. He noted that continued FII selling is exacerbating the pressure.
Broader Market
Broader indices underperformed the benchmarks, with the BSE Midcap and BSE Smallcap slumping 1.46% and 1.88%, respectively. The market breadth was negative, with 2,892 losers against 1,117 gainers on the BSE. Investor wealth eroded by ₹6.4 lakh crore on Friday alone and by ₹6.7 lakh crore during the week.
On Friday, foreign portfolio investors net sold shares worth Rs 1,979.96 crore while domestic institutional investors bought shares worth Rs 2,138.59 crore, as per provisional data by the BSE.
On a weekly basis, both the Sensex and Nifty posted losses for the fourth consecutive week—marking the longest losing streak in nine months. The Sensex declined 0.36%, and the Nifty fell 0.53%. Broader markets fared worse, with the BSE Midcap and BSE Smallcap indices declining 1.71% and 2.49%, respectively.
Sectorally, realty, IT, energy, FMCG, and oil & gas were the top laggards, falling up to 5% during the week. Banking, healthcare, and financial services were the only gainers, rising up to 0.48%.
Among Sensex constituents, Trent, Reliance Industries, Tech Mahindra, Infosys, and HCL Technologies were major losers, falling up to 6.14% during the week. On the other hand, Eicher Motors, ICICI Bank, HDFC Bank, Bharti Airtel, and Titan Company were among gainers, rising up to 20.69%.