Key Highlights
- Sensex fell 501 points; Nifty slipped 143 points in second consecutive session.
- Axis Bank dropped over 5 percent after missing Q1 earnings expectations.
- FIIs pulled out Rs 3,694 crore from Indian equities on Thursday.
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Mumbai: Indian stock markets closed lower for the second straight session on Friday as persistent foreign fund outflows and pressure on banking stocks weighed heavily on investor sentiment. The BSE Sensex tumbled 501.51 points, or 0.61 percent, to close at 81,757.73, after hitting an intraday low of 81,608.13. The broader NSE Nifty dropped 143.05 points, or 0.57 percent, to settle at 24,968.40.
The downward momentum was largely attributed to a disappointing start to the quarterly earnings season, especially in the banking sector, where Axis Bank’s results fell short of market expectations.
Axis Bank Misses Estimates, Sparks Selloff
Axis Bank was the biggest laggard among the Sensex constituents, plummeting 5.24 percent after reporting a 3 percent dip in consolidated net profit for the June quarter to Rs 6,243.72 crore. The decline was attributed to changes in the bank’s non-performing asset (NPA) and loan upgrade policy, which affected asset quality.
Devarsh Vakil, Head of Prime Research at HDFC Securities, noted that Axis Bank’s Global Depository Receipts (GDRs) had also slumped 4.8 percent to USD 64.30, reflecting global investor concerns over deteriorating asset quality.
Other major banking stocks, including HDFC Bank, Kotak Mahindra Bank, and State Bank of India, also ended in the red, dragging the BSE Bankex down by 1.33 percent to 62,741.65.
FIIs Exit, Earnings Uncertainty Looms
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,694.31 crore on Thursday, compounding the bearish tone. Market participants appear cautious as early Q1 earnings failed to inspire confidence. Global cues offered limited support, with mixed trends across Asia and mild gains in European and US markets.
While banking and telecom stocks led the decline, select counters offered resistance. Bajaj Finance, Tata Steel, ICICI Bank, HCL Tech, and Infosys emerged as notable gainers.
Brent crude, meanwhile, rose 0.92 percent to USD 70.16 a barrel, providing some relief on the commodities front.
(With PTI Inputs)
