The Indian stock market opened Friday with optimism, but within an hour, that green turned deep red. What began as a regular trading day spiraled into a sharp sell-off as news of ceasefire violations by Pakistan and rising diplomatic tensions gripped investors with concern. The fallout from the Pahalgam terror attack and military activity across the Line of Control (LoC) sent shockwaves through Dalal Street.
Amid panic selling and broad-based profit booking, especially in key index heavyweights, both Sensex and Nifty ended the day lower, snapping their recent winning streak and closing the week on a sour note.
By the end of the session, the Sensex settled at 79,118.26, down 0.86%, and the Nifty closed at 24,039.35, falling 086%. The Nifty Bank index also bore the brunt, shedding 0.97% to end at 54,664.05. Meanwhile, India VIX, a measure of market volatility, spiked 5.58%.
“Investor sentiment turned cautious amid escalating tensions along the Indo-Pak border. Mid- and small-cap stocks bore the brunt of the sell-off, driven by their elevated valuations and growing concerns over potential earnings downgrades following a muted start to the earnings season. The risk of the correction continuing in the near term is evident as investors adopt a wait-and-watch stance. However, it is a good time for persistent investors to dip into it, given the resilient nature of the Indian stock market during external & geopolitical volatility,” said Vinod Nair, Head of Research, Geojit Investments Limited.
8 big highlights from today’s market action-
Indices cracked in intraday trade
The Sensex tumbled over 1,100 points during the day, hitting a low of 78,606. Nifty, too, plunged nearly 400 points to slip below the crucial 24,000 mark and hit an intraday low of 23,848.
Mid and Smallcaps took a beating
The sell-off was not limited to large-caps. The Nifty Midcap and Smallcap indices crashed 3% and 3.5%, respectively, as broader market sentiment turned bearish.
Rising geopolitical tensions
The market panic was largely triggered by reports of Pakistan violating ceasefire norms along the LoC, just hours after unilaterally suspending the historic Simla Agreement. The Indian Army responded “effectively”, but the escalation spooked investors.
Profit booking in heavyweights
Big names dragged the market lower. Axis Bank, Adani Ports, Bajaj Finserv, SBI, Zomato, Tata Motors, M&M, HDFC Bank, Bharti Airtel, and L&T were among the top losers.
Sectoral pain across the board
All sectoral indices on the NSE closed in the red. PSU Banks led the fall, down 2.24%, followed by Realty (-2.8%), Pharma (-2.24%), Metal (-2.10%), Auto, and Bank Nifty – all slipping up to 2%.
Market breadth favoured bears
Out of 2,947 stocks traded on NSE today, only 455 advanced while 2,428 declined. About 146 stocks hit the lower circuit, with just 53 managing to hit the upper circuit.
Top Gainers
Even in a falling market, some stocks managed to stay afloat. SBI Life surged over 5% on the back of strong earnings, followed by TCS (up 1.35%), Tech Mahindra, Infosys, Ultratech Cement, IndusInd Bank, HUL, Grasim, and ICICI Bank, all ending in the green.
Top Laggards
Among the worst-hit were Shriram Finance, which crashed more than 8%, and Adani Enterprises, down nearly 4%. Other laggards included Adani Ports, Trent, Zomato, Axis Bank, and Apollo Hospitals, all falling between 3% and 4%.