Indian equity markets came under pressure on Friday as the Sensex fell more than 400 points and the Nifty 50 slipped below the 24,600 mark. Rising crude oil prices, renewed concerns over the Strait of Hormuz and selling in financial stocks kept investors cautious, even as gains in select automobile, consumer and technology stocks offered some relief.
The Sensex opened on a weak note and extended its losses during the morning session, while the Nifty also struggled to hold key levels. At around 11:38 am, the Nifty 50 was trading at 24,578.75, down 57.25 points. The market remained volatile as investors assessed global developments alongside the latest corporate earnings.
Financial stocks were among the biggest drags on the benchmarks. Bajaj Finance and Bajaj Finserv emerged among the top losers, falling sharply after the Reserve Bank of India proposed new regulatory norms for non-banking financial companies. Bajaj Finance declined around 3.9%, while Bajaj Finserv was down about 3.3% during the session.
The proposed RBI framework has raised concerns over tighter rules for certain lending products and business practices. The selling in the two stocks also weighed on the broader financial services space, which remained one of the weakest segments of the market.
In contrast, Hero MotoCorp and Britannia Industries were among the top gainers. Hero MotoCorp rose around 3% after the company reported a strong first-quarter performance. Its consolidated profit increased 29% year-on-year, supported by higher revenue and improved operating performance.
Britannia Industries also attracted buying interest after reporting a healthy quarterly performance. The stock gained nearly 4%, helping the consumer segment remain relatively resilient despite the broader market weakness.
Kalyan Jewellers was another stock in focus, gaining around 3.7% after positive commentary from brokerage Jefferies. The movement showed that investors continued to favour companies with strong earnings prospects or favourable analyst views, even as the broader market remained under pressure.
The biggest concern for the market, however, was the renewed rise in crude oil prices. Brent crude moved above $84 a barrel amid heightened concerns about shipping through the Strait of Hormuz. The waterway is a crucial route for global oil shipments, and any prolonged disruption could push energy prices higher.
Higher crude prices are particularly important for India because the country relies heavily on imported oil. A sustained increase in energy costs could widen the import bill, put pressure on the rupee and complicate the inflation outlook. It could also affect the profitability of companies that are unable to pass higher input costs on to consumers.
The rise in oil prices came alongside fresh geopolitical concerns involving Iran and the wider Middle East. Investors are therefore closely monitoring developments around the Strait of Hormuz for signs of a prolonged disruption or further escalation.
The India VIX, which tracks expected volatility in the equity market, also moved higher during the session. The increase indicated growing caution among traders and suggested that investors were preparing for larger swings in stock prices.
Despite the weakness in the headline indices, the market was not uniformly negative. Information technology stocks remained among the better-performing sectors, while automobile, healthcare and realty stocks also found buying interest. This helped limit the overall damage from the sell-off in financial shares.
Among individual stocks, Siemens Energy India was one of the notable performers after its quarterly results. Indraprastha Medical Corporation also advanced following its earnings announcement. These gains highlighted how company-specific developments continued to influence trading despite the broader risk-off mood.
At the other end of the spectrum, Vikram Solar plunged around 11%, touching a fresh lifetime low. The sharp decline added to the volatility in individual stocks and reflected the heightened sensitivity towards companies facing concerns around valuations or business performance.
Investors are also keeping a close watch on the ongoing Q1 earnings season. Several companies have delivered strong revenue and profit growth, providing support to the market. However, expensive valuations, elevated crude prices and uncertainty over global interest rates have made investors more selective.
Global cues also remained mixed. Asian markets traded without a clear direction, while US stocks had closed lower in the previous session. Investors were awaiting fresh US economic data for clues about the Federal Reserve’s future interest-rate decisions.
For the Indian market, the immediate focus is likely to remain on crude oil prices, geopolitical developments, foreign fund flows and corporate earnings. The movement of the Nifty around the 24,600 level will also remain important for traders in the near term.
Friday’s session once again showed the contrasting forces shaping Indian equities. Strong earnings and buying in select stocks are providing support, but financial-sector weakness, rising oil prices and geopolitical uncertainty are keeping the benchmark indices under pressure.