Benchmark indices extended their losing streak for the second consecutive session on Friday, as geopolitical tensions between India and Pakistan escalated further. The Sensex opened with a steep gap-down of 1,366 points or 1.70%, falling below the 80,000 mark to hit an intraday low of 78,968.34. It remained under selling pressure throughout the day and finally settled at 79,454.47, down 880.34 points or 1.10%.
The Nifty also declined by 265.80 points or 1.10%, closing just above the 24,000 mark at 24,008. This marked the steepest single-day fall since the onset of the conflict on April 22.
“While a conflict was anticipated, the market did not expect it to escalate to this extent, raising concerns about its duration. Nevertheless, it is still projected to be short-lived, given India’s strategic advantage and the adversary’s weaker economic position,” said Vinod Nair, Head of Research, Geojit Financial Services.
Broader markets, however, outperformed the benchmarks. The BSE Midcap index ended nearly flat, down 0.10%, while the BSE Smallcap index fell marginally by 0.30%. The overall market breadth was negative, with 2,656 losers versus 1,222 gainers on the BSE. The volatility index, India VIX, surged 2.97%, indicating rising market uncertainty.
Foreign portfolio investors (FPIs) turned net sellers after 16 sessions, offloading shares worth Rs 3,798.71 crore. On the other hand, domestic institutional investors (DIIs) were net buyers, purchasing shares worth Rs 7,277.74 crore, according to provisional BSE data.
On a weekly basis, both the BSE Sensex and Nifty snapped their three-week winning streak, posting losses of 1.30% and 1.39%, respectively. The BSE Midcap and Smallcap indices also declined by 1.40% and 1.32%, respectively, over the week.
Investors saw wealth erosion of Rs 2.10 lakh crore on Friday and Rs 6.40 lakh crore during the week, as the total market capitalisation of BSE-listed companies declined.
Sector-wise, realty, utilities, power, banking, and financial services were the top laggards, falling up to 6.33% during the week. In contrast, auto, consumer durables, and capital goods sectors were the top gainers, rising up to 1.54%.
Among the Sensex constituents, Sun Pharmaceuticals, Asian Paints, NTPC, IndusInd Bank, and Kotak Mahindra Bank were the top losers, declining up to 4.59%. On the other hand, Tata Motors, Titan Company, Larsen & Toubro, Adani Ports, and Mahindra & Mahindra were the top gainers, rising up to 8.69% for the week.