Mumbai,jul 18
Indian equity benchmarks on Friday ended in the negative zone after trading lower as market participants reacted to the first quarter (Q1FY26) earnings of the finance and IT sectors, despite positive global cues.At the end of the trading session, BSE Sensex was down 501.51 points or 0.61 per cent at 81,757.73, and the Nifty 50 at National Stock Exchange (NSE) was down 143.05 points or 0.57 per cent at 24,968.40.Axis Bank, Shriram Finance, Bharat Electronics, HDFC Life, and SBI Life Insurance are among the major losers on NSE, while Wipro, Tata Steel, ONGC, IndusInd Bank, and Infosys were the major gainers.On the sectoral front, except for metal and media, all other indices traded in the red with pharma, PSU bank, FMCG, capital goods, consumer durables, and telecom down 0.5-1 per cent.”A broad-based sell-off was observed in the national market amidst a disappointing initial set of earnings from the finance and IT sectors,” said Vinod Nair, Head of Research, Geojit Investments Limited.
Nair said that elevated valuations in large-cap stocks, coupled with significant net short positions held by Foreign Institutional Investors (FIIs), have contributed to a cautious sentiment among investors.”Moreover, additional tariff threats are also casting a shadow on India over its trade relationship with Russia. Despite these pressures, the medium- to long-term outlook for India remains optimistic, supported by low inflation levels and proactive monetary authority committed to sustaining economic growth,” Nair added.Shrikant Chouhan, Head Equity Research, Kotak Securities attributed the sentiment to financials of the IT firms adding, “While macro data remained supportive, most large-cap IT services companies disappointed estimates.” The Indian equity markets had a mixed week, with the Nifty-50 Index and Sensex falling 1 per cent each, while small-caps gained 1.4 per cent and mid-caps gained 1 per cent over the past week.
