Sensex, Nifty trim weekly gains as Pahalgam attack fuels geopolitical concerns
Analysts attributed the sharp gains in the IT index to a better-than-expected earnings outlook by software companies, as well as hopes of easing trade tensions.
Analysts attributed the sharp gains in the IT index to a better-than-expected earnings outlook by software companies, as well as hopes of easing trade tensions.
Analysts attributed the sharp gains in the IT index to a better-than-expected earnings outlook by software companies, as well as hopes of easing trade tensions.
India's benchmark indices declined on Friday, limiting their weekly gains, weighed by broad-based sectoral losses and investor anxiety over geopolitical tensions following a deadly militant attack in Pahalgam.
The broad-based Nifty 50 fell 207.35 points (or 0.86 per cent) to 24,039.35 while the 30-share BSE Sensex lost 588.90 points (or 0.74 per cent) to 79,212.53. Both had risen about 0.8 per cent each this week. The IT index jumped 6.6 per cent to log their best week since June 7, 2024.
Analysts attributed the sharp gains in the IT index to a better-than-expected earnings outlook by software companies, as well as hopes of easing trade tensions.
On the day, 12 of the 13 major sectors declined. The broader, more domestically focussed small-caps and mid-caps lost about 2.5 per cent each, as investors turned risk-averse after an attack on tourists in Baisaran Valley killed 26 men and heightened geopolitical tensions.
In contrast to domestic equities, the MSCI Asia ex-Japan index advanced 0.3 per cent, after US President Donald Trump said trade talks between the world's top two economies were underway, pushing back against contradicting Chinese claims.
While the return of foreign inflows and expectations of a bilateral trade deal between India and the US are strong tailwinds for the markets, a potential headwind looming large is the uncertainty regarding India's response to the terror attack, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
Oil-to-telecom conglomerate Reliance Industries traded flat ahead of reporting fourth-quarter results later in the day.
Car maker Maruti Suzuki fell 1.7 per cent on posting a surprise profit drop in the March quarter.
Private lender Axis Bank lost 3.4 per cent as brokerages flagged weak loan growth. The bank, which reported results on Thursday, indicated it may take a few quarters for asset quality to improve.
Bucking the trend, SBI Life jumped 5.4 per cent after logging a 10 per cent year-on-year growth in value of new business in the March quarter.