Markets closed sharply lower on Friday as escalating border tensions between India and Pakistan weighed heavily on investor sentiment, with the benchmark indices extending losses for the second consecutive session despite constructive global cues.
The BSE Sensex closed at 79,454.47, down 880.34 points or 1.10 per cent from its previous close, while the Nifty50 ended at 24,008, shedding 265.80 points or 1.10 per cent. The indices snapped their three-week winning streak, with both benchmarks posting weekly losses exceeding 1.39 per cent.
“Nifty traders appeared to embrace risk-off trades amid India-Pakistan tensions, as the index fell from its recent consolidation zone,” said Rupak De, Senior Technical Analyst at LKP Securities. “The Nifty managed to stay above the 24,000 mark as the index found support around the 21-day exponential moving average (EMA).”
Market breadth remained negative for the second consecutive day, with 2,522 stocks declining against 1,343 advances on the BSE. The volatility index, India VIX, surged by 2.97 per cent, indicating rising market uncertainty. Notably, 190 stocks hit their 52-week lows compared to just 52 stocks reaching 52-week highs.
Among sectoral indices, Realty was the worst performer, shedding 2.3 per cent, followed by Private Banks declining 1.3 per cent. Meanwhile, Media, Consumer Durables, Capital Goods, and PSU Banks showed strength with gains ranging from 0.9 per cent to 1.6 per cent.
ICICI Bank was the top loser among Nifty constituents, falling 3.24 per cent to ₹1,389, followed by Power Grid (-2.74 per cent), Grasim (-2.22 per cent), UltraCemCo (-2.22 per cent), and Shriram Finance (-2.08 per cent).
On the gainers’ side, Titan led with a 4.17 per cent jump to ₹3,509.90, followed by Larsen & Toubro (3.84 per cent), Tata Motors (3.83 per cent), Bharat Electronics (2.93 per cent), and State Bank of India (1.50 per cent).
“The Indian equity market opened sharply lower today, plummeting by 338 points, as news of escalating conflict between India and Pakistan weighed heavily on investor sentiment,” said Devarsh Vakil, Head of Prime Research, HDFC Securities. “Despite the sharply negative opening, the Nifty Midcap and Smallcap indices recovered remarkably, gaining over 2 per cent from their intraday lows.”
The broader markets showed mixed performance, with the Nifty Midcap 100 index closing flat while the Smallcap 100 index declined by 0.61 per cent. The total market capitalization of all listed companies on the BSE declined to ₹41,701,115.92 crore from ₹41,934,056.71 crore the previous day.
After three consecutive days of sharp depreciation, the Indian Rupee found some respite, appreciating by 34 paise against the US dollar to close at ₹85.37.
“Rupee traded in a volatile range of 85.90 to 85.35 amid ongoing border tensions between India and Pakistan, with signs of escalation keeping market participants cautious,” noted Jateen Trivedi, VP Research Analyst at LKP Securities.
In commodities, gold prices witnessed volatility, trading between ₹95,750 and ₹96,750 on the MCX, influenced by sharp movements in the rupee and optimism surrounding US-Europe trade announcements.
Technical analysts suggest the market could remain under pressure in the coming sessions. “We believe that as long as the market remains below the 24,150/79,900 level, weak sentiment is likely to continue. On the downside, it could retest the 23,800/78,800 level,” said Amol Athawale of Kotak Securities.
Nagaraj Shetti from HDFC Securities added, “Further weakness from here could find strong cluster supports around 23800-23600 levels and there is a possibility of an upside bounce occurring from the lows.”
Looking ahead, market experts believe volatility will remain elevated going into next week, driven by geopolitical developments, tariff-related concerns, and the ongoing Q4 earnings season. The Nifty is expected to trade within the 24,600-23,800 range, with immediate resistance at 24,150-24,340 and support at 23,850.
Published on May 9, 2025
