Indian equity markets, including the Sensex and Nifty, experienced a significant downturn for the second consecutive day, driven by escalating geopolitical tensions in West Asia and persistent foreign fund outflows, impacting investor sentiment and leading to profit booking.
Key Points
- Indian equity markets, including the Sensex and Nifty, fell for the second consecutive day due to escalating geopolitical tensions in West Asia and continued foreign fund outflows.
- Renewed US-Iran military action near the Strait of Hormuz significantly impacted investor sentiment, raising concerns over energy supplies.
- Foreign Institutional Investors (FIIs) continued to sell equities, offloading Rs 340.89 crore, contributing to the bearish trend.
- State Bank of India shares dropped over 6% after its March quarter earnings, while Titan saw a nearly 5% jump following strong consolidated net profit.
- Despite the risk-off session, global oil benchmark Brent crude traded around $100 per barrel, with stability in prices offering some underlying support.
Equity markets stayed on the back foot for the second day on Friday as fresh geopolitical tensions in West Asia revived concerns over energy supplies and weighed heavily on investor sentiment.
Foreign fund outflows and a weak trend in global markets further added to the bearish trend.
Market Performance Overview
The 30-share BSE Sensex tanked 516.33 points, or 0.66 per cent, to settle at 77,328.19.
During the session, it tumbled 698.09 points, or 0.89 per cent, to 77,146.43.
The 50-share NSE Nifty dropped 150.50 points, or 0.62 per cent, to end at 24,176.15.
From the Sensex pack, State Bank of India tanked 6.62 per cent after its March quarter earnings.
HDFC Bank, Bajaj Finance, Axis Bank, UltraTech Cement and Mahindra & Mahindra were also among the laggards.
However, Titan jumped 4.76 per cent after the leading jewellery and watchmaker reported a 35.36 per cent increase in its consolidated net profit to Rs 1,179 crore for the March quarter of FY26.
Asian Paints, Adani Ports, Infosys and HCL Tech settled in the positive territory.
Global Factors and Expert Insights
Brent crude, the global oil benchmark, traded around $100 per barrel.
"Markets witnessed a risk-off session following fresh US-Iran military action near the Strait of Hormuz, which weakened ceasefire hopes and triggered profit booking.
"However, stability in crude oil prices around $100 per barrel and benign US 10-year yields continue to provide support to the broader sentiment and the rupee," Vinod Nair, head of research, Geojit Investments Limited, said.
Though the road ahead is slightly bumpy, optimism around a possible diplomatic resolution persists, he added.
In Asian markets, South Korea's benchmark Kospi ended marginally higher, while Japan's benchmark Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled lower.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 340.89 crore on Thursday, according to exchange data.
