Equity benchmark indices witnessed a sharp fall on Friday, with the BSE Sensex tumbling 1,004.04 points to 78,797.39 and the NSE Nifty plunging 338.1 points to 23,908.60 during late morning trade. The drop followed rising investor concerns over the escalating geopolitical tensions between India and Pakistan after the recent Pahalgam terror attack.
Axis Bank Leads Market Decline
Among the top losers on the Sensex, Axis Bank fell 4.50%, following the release of its March quarter results which showed a marginal drop in net profit to ₹7,117 crore from ₹7,130 crore year-on-year. Other significant laggards included Adani Ports, Bajaj Finserv, SBI, Power Grid, NTPC, Tata Motors, Mahindra & Mahindra, Bajaj Finance, and Tata Steel.
On the other hand, Infosys and Tata Consultancy Services managed to trade in the green, offering some relief to an otherwise bearish session.
Experts Cite Terror Attack, Global Sentiment Shift
Market analysts pointed to Tuesday’s terror attack in Pahalgam as a key reason behind the plunge. “The potential headwind looming large on the horizon is the uncertainty regarding India’s response to the terror attack and its consequences,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Tailwinds from FII Inflows and Global Confidence
Despite the day’s selloff, Vijayakumar also noted positive momentum from Foreign Institutional Investors (FIIs), who have pumped in ₹29,513 crore over the past week. He added, “A strong tailwind is the sustained FII buying… another tailwind is US Treasury Secretary Scot Bessent’s remark that ‘India is expected to strike the first bilateral trade deal with the US.’”
Mixed Global Cues
In contrast to India’s markets, other Asian indices like South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng were trading positively. US markets had ended Thursday on a strong note, with the Nasdaq surging 2.74%, the S&P 500 gaining 2.03%, and the Dow Jones rising 1.23%.
Crude Prices Inch Up, FIIs Remain Bullish
Brent crude prices edged up 0.65% to $66.98 per barrel. On the domestic front, FIIs continued their buying streak, infusing ₹8,250.53 crore in Indian equities on Thursday.
Previous Session Recap
On Thursday, the Sensex had already shown signs of weakness, dropping 315.06 points to close at 79,801.43, while the Nifty slipped 82.25 points to settle at 24,246.70.
