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Indian equity markets ended lower on Friday, with the Sensex declining 456 points and the Nifty closing below the 24,600 mark, as heavy selling in financial stocks offset gains in the IT and automobile sectors. Investor sentiment remained cautious ahead of the release of the US July employment data, a key indicator for future Federal Reserve policy decisions.
The Sensex fell 0.58% to 78,499.17, while the Nifty 50 declined 0.27% to 24,570.65. Despite the weakness in benchmark indices, broader markets displayed resilience, with the Mid-Cap index gaining 0.18% and Small-Cap stocks ending largely unchanged.
Financial Stocks Lead Market Decline
The market came under pressure primarily due to weakness in private banks and non-banking financial companies (NBFCs). Bajaj Finance, ICICI Bank and Axis Bank were among the biggest contributors to the Nifty's decline, dragging the Financial Services index lower.
Key Market Indicators
Brent crude oil eased to around USD 82 per barrel.
The Indian rupee strengthened marginally against the US dollar.
Gold prices surged over 1.5%, reflecting increased demand for safe-haven assets.
India's 10-year government bond yield edged higher, while US Treasury yields softened.
Global Markets
Global sentiment remained mixed:
European markets traded higher and were on track for their strongest weekly performance since June, supported by robust corporate earnings.
Asian markets advanced on optimism that efforts to reopen the Strait of Hormuz could help stabilize oil prices and ease inflation concerns.
China's trade data remained strong, with exports rising 23% year-on-year and imports increasing 27.5%, although growth moderated from June levels.
Crude oil prices remained volatile after Iran proposed restrictions on shipping through the Strait of Hormuz, raising concerns over potential supply disruptions.
US markets closed lower overnight, with investors awaiting the July employment report for clues on the Federal Reserve's interest-rate trajectory.
Earnings and Stock Highlights
Top Gainers
Tata Technologies surged nearly 9% following reports of a vehicle development programme for a Japanese automobile manufacturer.
State Bank of India (SBI) gained after reporting a 10.2% rise in quarterly net profit and strong growth in net interest income.
LIC, Hero MotoCorp, Britannia Industries, and Fortis Healthcare advanced after posting healthy quarterly earnings.
Varroc Engineering, G R Infraprojects, GK Energy, and SNL Bearings moved higher on the back of strong revenue and profit growth.
Top Losers
Titan Company declined despite reporting strong growth across its jewellery, watches and eyewear businesses.
Saksoft fell after reporting lower quarterly earnings and subdued revenue growth.
IPO Update
?Investor participation remained robust in the primary market:
Ardee Industries IPO attracted exceptional demand, receiving subscriptions of over 133 times.
Technocraft Ventures IPO was subscribed 2.6 times.
LEAP India IPO witnessed modest participation, with subscriptions at 0.26 times.
Outlook
Market participants will closely monitor upcoming US employment data, global crude oil movements, developments surrounding the Strait of Hormuz, and the ongoing earnings season. The performance of financial stocks and global interest-rate expectations are likely to remain key drivers of market direction in the near term.
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