Benchmark Indices Emerge as Worst Performers in Asia
Indian benchmark indices, Sensex and Nifty, were the worst performers among Asian markets on Friday, amid geopolitical tensions and heavy profit-booking.
- Sensex fell 0.74%,
- while Nifty declined 0.86%, reflecting broad-based selling pressure.
Despite the volatility, foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) remained net buyers, offering some support to overall market sentiment.
Heavy Market Erosion: Investor Wealth Tanks ₹8.05 Lakh Crore
Investor wealth took a massive hit as the total BSE market capitalisation slipped below the critical $5 trillion mark, now standing at $4.93 trillion (₹421.6 lakh crore).
- The erosion amounts to an estimated ₹8.05 lakh crore loss in a single session.
Benchmark indices extended losses for the second day in a row, showcasing investor unease and heightened risk aversion.
Session Recap: Sharp Intraday Swings and Modest Recovery
The Sensex briefly crossed the 80,000 mark at the open but quickly reversed, falling over 1,200 points to an intraday low of 78,605.81.
- However, a partial recovery helped it close at 79,212.53, still down by 588.90 points.
Similarly, the Nifty touched a low of 23,847.85, before ending above the 24,000 mark at 24,039.35, falling 207.35 points.
- The sharp volatility signals growing investor nervousness.
Geopolitical Tensions Trigger Risk-Off Sentiment
Vikram Kasat, Head of Advisory at PL Capital, cited the Pahalgam terror attack and increased ceasefire violations as key triggers behind Friday’s sell-off.
- Heightened geopolitical risks forced investors into a risk-off mode,
- leading to aggressive profit-booking after a strong recent rally.
Ajit Mishra, SVP at Religare Broking, added that markets looked overstretched, which further prompted traders to lighten positions.
Broader Markets Under Severe Pressure
Market breadth was decisively negative, with 3,245 stocks declining against just 720 gainers on the BSE.
- The BSE Midcap and Smallcap indices plunged 2.44% and 2.56%, respectively.
Meanwhile, the India VIX, a measure of market volatility, jumped 5.58% to 17.16, suggesting that uncertainty could persist in the near term.
Sectoral Performance: IT Stocks Shine Amid Broad Weakness
Barring the IT sector, all sectoral indices on the BSE and NSE ended in the red.
- Services, utilities, realty, power, and telecom were the worst hit, falling up to 3.11%.
Among Sensex constituents:
- Adani Ports, Axis Bank, Eternal (Zomato), Bajaj Finserv, and Power Grid led the losses, dropping up to 3.61%.
- In contrast, TCS, Infosys, and Tech Mahindra rose up to 1.36%, offering some stability.
Comparative Performance: India Lags While Asia Gains
Among Asian peers:
- Markets in Japan, Taiwan, Philippines, Thailand, Indonesia, and South Korea posted gains of up to 2.02%.
- China and Singapore ended slightly lower, while Hong Kong recorded marginal gains.
India’s underperformance stands out, particularly in the face of a generally positive regional sentiment.
FPIs and DIIs Continue to Buy Despite Volatility
Surprisingly, despite the sell-off, both FPIs and DIIs remained net buyers:
- FPIs bought shares worth ₹2,952.33 crore,
- while DIIs net purchased ₹3,539.85 crore, based on provisional BSE data.
This sustained buying suggests underlying confidence in Indian equities despite short-term geopolitical concerns.
Weekly Snapshot: Gains Despite Friday’s Sell-Off
On a weekly basis, markets still managed to close in the green:
- The Sensex and Nifty rose up to 0.79%,
- while the broader indices gained up to 1.31%.
Thus, despite Friday’s heavy losses, Indian equities posted modest weekly gains, indicating that bullish undertones still persist under the surface.