“Markets edged lower and lost nearly half a percent on the weekly expiry day. After a flat start, the Nifty gradually drifted lower as the session progressed and finally settled near the day’s low, around the 25,355.25 mark. On the sectoral front, profit booking in IT majors ahead of TCS results weighed on the index, followed closely by weakness in FMCG and pharma stocks. However, the realty and metal sectors bucked the trend and closed in the green. The broader indices also ended with modest losses, continuing their profit-taking phase,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
The S&P BSE Sensex declined 346 points, or 0.41%, to settle at 83,190. The Nifty Bank index dropped 258 points to 56,956, while the Nifty Midcap 100 lost 180 points to close at 59,160.Losses were broad-based, with nearly 40 of the 50 Nifty constituents ending in the red. Bharti Airtel was the top Nifty loser, while IndusInd Bank and Maruti Suzuki rose over 1.5% each to lead the gainers.
HDFC Life fell after reporting weak life insurance data for June, while Max Financial Services gained following its monthly update. Life Insurance Corporation of India (LIC) dropped 2% amid weak sector data and reports suggesting the government may offload stake via an offer-for-sale (OFS).
Information technology stocks remained under pressure ahead of key earnings from Tata Elxsi and Tata Consultancy Services (TCS) later this week.”Markets will react to TCS’s earnings in early trade, with a keen eye on management commentary, which could set the initial tone,” Religare Broking’s Ajit Mishra said.
Broader market volumes were muted, and the BSE benchmark extended losses to end down 2%.
Asian Paints declined 2% after announcing it had sold its entire 4.4% stake in Akzo Nobel India. Meanwhile, Glenmark Pharmaceuticals surged over 5% after the U.S. FDA approved its lead asset, ISB 2001.
Among other movers, Paytm rose 4% as buying interest continued ahead of its quarterly update. Power Finance Corp (PFC) and REC Ltd ended in the green after Morgan Stanley released a bullish brokerage note on the power financiers.
IREDA gained 2% after the government allowed the company to raise funds via capital gains bonds. Prestige Estates climbed 3% following positive commentary from brokerages post its Q1 update.
Defence-related stocks saw profit-taking after recent gains. Bharat Dynamics dropped 5%, while Solar Industries India fell over 3%.
Market breadth was largely neutral, with the NSE advance-decline ratio standing at 1:1, reflecting cautious investor sentiment amid subdued global cues and sector-specific headwinds.
