Equity benchmark indices Sensex and Nifty fell by over 1 per cent on Friday, marking their third straight session of losses, as a sharp surge in crude oil prices and heavy selling in IT stocks dampened investor sentiment.
Persistent foreign fund outflows, weak global market trends driven by an ongoing geopolitical conflict, and continued disruption in the Strait of Hormuz further contributed to the negative mood.
The 30-share BSE Sensex declined by 999.79 points, or 1.29 per cent, closing at 76,664.21. During intraday trade, it had dropped as much as 1,260.13 points, or 1.62 per cent, to 76,403.87.
On the BSE, a total of 2,905 stocks ended lower, while 1,326 advanced and 158 remained unchanged. The broader NSE Nifty also registered losses, slipping 275.10 points, or 1.14 per cent, to settle at 23,897.95.
For the week, the Sensex recorded a decline of 1,829.33 points, or 2.33 per cent, while the Nifty fell by 455.6 points, or 1.87 per cent. According to market experts, domestic equities continued their downward trajectory for a third consecutive session amid rising risk aversion. Ongoing tensions in the Middle East and sustained weakness in the IT sector added pressure to an already fragile market environment.
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Volatility also intensified, with the India VIX climbing 6 per cent, indicating growing uncertainty and fear among investors due to the prolonged geopolitical conflict and lack of any clear signs of easing tensions. Among Sensex stocks, Infosys was the worst performer, plunging 7.09 per cent after issuing a weaker-than-expected revenue growth outlook for FY27. Other major laggards included HCL Tech, Tata Consultancy Services, Tech Mahindra, Sun Pharma, Asian Paints, and ICICI Bank.
On the other hand, Trent, Bajaj Finance, State Bank of India, HDFC Bank, and Kotak Mahindra Bank were among the gainers. In the broader market, the BSE SmallCap Select index declined by 0.95 per cent, while the MidCap Select index slipped 0.91 per cent.
All sectoral indices closed in the red. The IT index saw the sharpest fall, dropping 5.13 per cent, followed by declines in Focused IT (4.65 per cent), Healthcare (1.35 per cent), Telecommunication (1.33 per cent), Realty (1.30 per cent), Services (1.17 per cent), and Consumer Discretionary (1.04 per cent).
Analysts noted that weak global cues, disappointing earnings from IT majors, rising crude oil prices, inflation concerns, and pressure on the rupee collectively weighed on investor sentiment, keeping market participation subdued despite selective stock-specific buying.
Brent crude, the global oil benchmark, rose 2.17 per cent to trade at USD 107.3 per barrel. Foreign institutional investors (FIIs) continued to sell, offloading equities worth Rs 3,254.71 crore on Thursday, as per exchange data. Market participants observed that IT stocks led the decline following underwhelming quarterly results, while selling pressure was widespread across sectors. FIIs also resumed net selling after a brief period of inflows.
In Asia, South Korea’s Kospi and China’s Shanghai Composite ended lower, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng closed in positive territory.
European markets were trading lower in afternoon deals, and US markets had ended in the red on Thursday.
Experts expect markets to remain range-bound in the near term, with cautious sentiment prevailing as investors track developments in the West Asia conflict. Uncertainty surrounding US-Iran negotiations and ongoing disruptions in the Strait of Hormuz are keeping crude prices elevated and limiting risk appetite.
The absence of meaningful progress on the geopolitical front is likely to continue exerting pressure on oil prices, the rupee, and equity markets.
In the previous session on Thursday, the Sensex had dropped 852.49 points, or 1.09 per cent, to close at 77,664, while the Nifty fell 205.05 points, or 0.84 per cent, ending at 24,173.05.
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