Stock market ends lower for third straight week; financials, defence stocks weigh heavily

The equity markets posted their third consecutive weekly loss as benchmark indices remained under pressure from financial and defence stocks, amid a flurry of earnings reports and persistent global uncertainty. While broader midcaps bucked the trend, headline indices struggled to hold gains through the week.On Friday, the BSE Sensex declined 502 points to close at 81,758, while the Nifty 50 shed 143 points to settle at 24,968, slipping below the 25,000-mark for the first time this month. The Nifty Bank index fell 546 points to end at 56,283, marking a weak finish to a volatile week. Meanwhile, the Nifty Midcap 100 index edged up nearly 1% for the week, reflecting selective buying in non-index stocks.
The financial sector remained a major drag on the broader market, with banking and insurance stocks seeing sustained selling. Investor sentiment was dented by weaker-than-expected quarterly results and concerns around asset quality. Axis Bank was the worst performer on the Nifty, plunging over 5%.
Defence stocks, which had recently been in favour, reversed course this week. The Nifty Defence index fell over 4% during the week, with Mazagon Dock, BDL, and Bharat Electronics leading losses amid profit-taking and muted sectoral commentary.Earnings remained a key driver of stock-specific action. Wipro emerged as the top Nifty gainer on Friday, rising over 2% after the IT major posted in-line results. However, the broader Nifty IT index underperformed during the week, dragged by muted guidance and margin pressures reported by some peers.

Hero MotoCorp, M&M, Bajaj Auto, and Nestle India were among the other notable gainers on the Nifty this week, benefitting from stable earnings and improving demand signals in the consumption and auto sectors.Midcap action remained strong, with several stocks posting outsized gains on positive earnings surprises. Patanjali Foods, HDFC AMC, Piramal Enterprises, and KEI Industries were among the top midcap gainers for the week.

On the flip side, BDL, Inox Wind, Mazagon Dock, and ICICI Lombard led the decline in the midcap space, under pressure from either valuation concerns or weaker quarterly performance.

Metal stocks saw buying interest despite the broader market weakness. Tata Steel and NMDC gained on Friday, helping offset losses in other sectors.

Cement stocks were also in focus after Nuvoco Vistas posted strong quarterly numbers.

Investor focus also turned to developments around the rare-earth magnet sector, with the Prime Minister’s Office holding a key meeting on policy. Shares of GMDC surged 13% in response, driven by expectations of favourable government action to boost the strategic minerals ecosystem.

Indian Hotels, Tata Communications, and HDFC AMC also rose after reporting strong operational metrics, reflecting improving fundamentals across consumption and services sectors.