Market Ends Weak as Smallcap Index Drops 1.85%, IT Stocks Gain
Equity benchmarks finished the Friday session in the red, with smallcap and midcap indices witnessing the sharpest declines, while information technology and healthcare counters provided relief.
The Sensex settled 308.49 points, or 0.42 per cent, lower at 74,459.53. The broader Nifty closed at 23,053.10, down 116.35 points or 0.51 per cent.
The Nifty Midcap 100 index lost 540.40 points, or 0.93 per cent, ending at 57,301.25. The Nifty Smallcap 100 index was the weakest of the broader indices, falling 347.75 points, or 1.85 per cent, to close at 18,463.60.
Sectorally, the Nifty IT index led the gainers with a 2.32 per cent rise, followed by the Nifty Healthcare index, which advanced 1.58 per cent. The Nifty Pharma index added 1.55 per cent, the Nifty Services index rose 1.17 per cent, the Nifty Consumption index gained 0.29 per cent and the Nifty Infra index edged 0.07 per cent higher.
On the losing side, the Nifty India Defence index declined 2.01 per cent and the Nifty Consumer Durables index dropped 1.78 per cent. The Nifty Media index fell 1.46 per cent, the Nifty Energy index lost 0.97 per cent, the Nifty PSU Bank index eased 0.93 per cent and the Nifty Auto index slid 0.87 per cent.
Trent, IndiGo, Infosys, NTPC, Power Grid, Eternal, Tech Mahindra, HUL Tech, HDFC Bank, Kotak Mahindra Bank, Sun Pharma, ITC, Asian Paints, TCS, ICICI Bank, L&T, HUL and Titan were among the Sensex gainers. SBI, M&M, UltraTech Cement, Tata Steel, Axis Bank, BEL, Reliance Industries, Bajaj Finserv, Bharti Airtel and Maruti Suzuki featured among the losers.
Market participants pointed to continuing inflation concerns as the main reason for subdued sentiment. The ECB and the Bank of Japan kept rates steady, as the Federal Reserve had done. Fresh anxieties over AI valuations spread to Asian markets, and a rise in crude oil prices amid new US-Iran tensions added to the pressure.
These developments triggered heavy selling in midcap and smallcap shares. Large-cap IT stocks saw selective buying as investors moved money out of global AI shares, while pharma and healthcare benefited from solid results and defensive demand.