Indian stock markets have started the week with a dip, continuing the downward trend seen in the previous week. As foreign institutional investors (FIIs) remain in a selling mode, the benchmarks NIFTY50 and SENSEX saw a decline of over 1%. Among the hardest-hit were heavyweight stocks such as HDFC Bank, Kotak Bank, and Reliance.
Foreign Selling Drags Markets Lower
Foreign investors have kept the pressure on Indian markets, dumping equities worth over ₹4,200 crore on Friday alone. This sustained outflow has weighed heavily on sentiment, sending both the NIFTY50 and SENSEX deep into the red. The cautious mood stems from continued concerns over global trade tensions, particularly between the U.S. and China, as well as investors bracing for the start of India’s Q3 earnings season.
The NIFTY50, which reflects the performance of the country’s 50 largest stocks, fell by 240 points, or 1.01%, trading at 23,764.85. The broader BSE mid-cap index also lost 1.27%, while small-cap stocks saw an even steeper decline of 1.64%. On the SENSEX, which tracks 30 of India’s top companies, the index dropped by 800 points or 0.95%, hovering around 78,530.57.
- Key Statistics from Today’s Trading Session:
- NIFTY50 closed at 23,764.85, down by 240 points (1.01%).
- SENSEX traded at 78,530.57, down by 800 points (0.95%).
- Foreign investors sold ₹4,227 crore worth of equities on Friday.
HDFC Bank, Kotak Bank, and Reliance Face Significant Losses
Several large-cap stocks, including HDFC Bank, Kotak Mahindra Bank, and Reliance Industries, have been major contributors to today’s market fall.
Shares of HDFC Bank took a hit after the lender’s Q3 business update revealed a slowdown in credit growth for the December quarter. While the bank indicated that a higher deposit growth rate could help buffer its credit costs, investors were left unsettled by the weaker growth in loans. Kotak Mahindra Bank also saw a sharp decline, as did Reliance Industries, both of which weigh heavily on the indices.
Titan and Bajaj Finance Shine Amid Market Sell-Off
In contrast to the broader market slump, a few stocks showed signs of resilience. Titan Company was a major gainer, with its shares climbing over 2% after reporting strong business updates for Q3FY25. The company saw a 24% year-on-year growth in its standalone revenue and expanded its retail network significantly. As investors turned towards defensive stocks, Titan’s strong performance stood out in an otherwise bleak session.
Similarly, Bajaj Finance showed modest gains of 1.06%, buoyed by optimistic market sentiment around its growth outlook.
- Top Gainers in Today’s Market:
- Bajaj Finance (+1.06%)
- Titan Company (+1.02%)
- Apollo Hospital Enterprises (+0.70%)
On the other hand, sectors linked to metals and energy, such as Tata Steel and ITC, dragged the indices further down.
Investor Sentiment Dips Ahead of Q3 Earnings
With earnings season underway, investors are closely watching the performance of major companies like Tata Consultancy Services (TCS), which kicks off the Q3 results this week. The uncertainty in global markets and cautious sentiment among investors has led to a more conservative outlook in anticipation of these results.
Analysts are waiting to see if companies can meet their expected growth targets, especially in sectors like banking, where slower loan growth and rising interest rates could impact margins.
The ongoing FII selling spree, coupled with external geopolitical risks, has created a tense atmosphere on the stock exchanges. As the markets brace for more news, many investors are hoping that the Q3 results could provide a much-needed catalyst to reverse the negative sentiment.
