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Indian equity benchmarks on Friday ended in the negative zone after trading lower as market participants reacted to the first quarter (Q1FY26) earnings of the finance and IT sectors, despite positive global cues.
At the end of the trading session, BSE Sensex was down 501.51 points or 0.61 per cent at 81,757.73, and the Nifty 50 at National Stock Exchange (NSE) was down 143.05 points or 0.57 per cent at 24,968.40. Axis Bank, Shriram Finance, Bharat Electronics, HDFC Life, and SBI Life Insurance are among the major losers on NSE, while Wipro, Tata Steel, ONGC, IndusInd Bank, and Infosys were the major gainers. On the sectoral front, except for metal and media, all other indices traded in the red with pharma, PSU bank, FMCG, capital goods, consumer durables, and telecom down 0.5-1 per cent. "A broad-based sell-off was observed in the national market amidst a disappointing initial set of earnings from the finance and IT sectors," said Vinod Nair, Head of Research, Geojit Investments Limited. Nair said that elevated valuations in large-cap stocks, coupled with significant net short positions held by Foreign Institutional Investors (FIIs), have contributed to a cautious sentiment among investors. "Moreover, additional tariff threats are also casting a shadow on India over its trade relationship with Russia. Despite these pressures, the medium- to long-term outlook for India remains optimistic, supported by low inflation levels and proactive monetary authority committed to sustaining economic growth," Nair added. Shrikant Chouhan, Head Equity Research, Kotak Securities attributed the sentiment to financials of the IT firms adding, "While macro data remained supportive, most large-cap IT services companies disappointed estimates." The Indian equity markets had a mixed week, with the Nifty-50 Index and Sensex falling 1 per cent each, while small-caps gained 1.4 per cent and mid-caps gained 1 per cent over the past week. Sector-wise, indices were mixed during the week. Health care (1.9 %), Auto (1.8%), FMCG (1.2%), Realty (3.4%) and Consumer Durable (0.7%) gained the most. While IT (- 1.3%) and Bank Nifty (-0.9%) lost the most. Within the Nifty, Hero Moto (+4.5%), M&M (+3.5%) and Bajaj Auto (+3.4%) gained the most, while Axis Bank (-5.9%), HCL Tech (-5.6%) and Tech Mahindra (-3.2%) lost the most. Indian equity markets also turned attention to the Q1FY26 earnings season, with investors having muted expectations for the season. On the macro front, June CPI inflation moderated to 2.1 per cent (May: 2.8%), the goods trade deficit in June narrowed from May levels to USD 18.8 billion, led by a sharp fall in oil and gold imports and the services trade surplus remained steady at USD 15.3 billion. Domestic Institutional Investors (DIIs) were net buyers and Foreign Institutional Investors (FIIs) were net sellers during the week. (ANI)
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