Indian Markets Tumble as Finance and IT Earnings Disappoint
Indian equity benchmarks ended lower, impacted by weak Q1FY26 earnings from finance and IT sectors, despite positive global trends. Sensex fell by 501.51 points, and Nifty dropped by 143.05 points. Major losers included Axis Bank and Shriram Finance, while Wipro and Tata Steel were notable gainers.
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- India
In a week marked by volatility, Indian equity markets concluded in the red on Friday, driven down by underwhelming Q1FY26 earnings from the finance and IT sectors, despite generally positive global signals. The BSE Sensex closed 501.51 points lower, a decline of 0.61%, settling at 81,757.73. Concurrently, the Nifty 50 index fell 143.05 points, or 0.57%, to finish at 24,968.40.
Among the notable decliners on the NSE were Axis Bank, Shriram Finance, and Bharat Electronics, whereas Wipro, Tata Steel, and ONGC emerged as the primary gainers. Sector-wise, only metal and media managed to hold ground, with the rest, such as pharma, PSU banks, and FMCG sectors, ending in negative territory, recording losses between 0.5% to 1%.
Vinod Nair, Head of Research at Geojit Investments Limited, commented, "A broad-market sell-off was triggered by subpar financial results in the finance and IT sectors." He elaborated on strained investor sentiment due to high valuations in large-cap stocks and the significant short positions held by Foreign Institutional Investors (FIIs). The medium- to long-term economic outlook remains positive, supported by reduced inflation and committed monetary policies, despite tariff threats impacting India-Russia trade relations.
Meanwhile, the Nifty-50 and Sensex indices each slipped 1% over the week, overshadowed by gains in small-cap (1.4%) and mid-cap (1%) stocks. Notably, Hero MotoCorp surged by 4.5%, while banks like Axis Bank dropped by 5.9%. The June CPI inflation rate eased to 2.1%, a decline from May's 2.8%, and the trade deficit reduced as oil and gold imports fell.
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