Markets End Weak As SBI Earnings Miss Triggers Broad Banking Fall

Indian benchmark indices ended sharply lower on Thursday, dragged down by heavy selling in banking and financial stocks after weaker-than-expected earnings from State Bank of India (SBI) dented investor sentiment.

The BSE Sensex declined 516.33 points or 0.66% to close at 77,328.19, while the NSE Nifty50 fell 150.50 points or 0.62% to settle at 24,176.15.

Markets remained under pressure through the session as investors reacted negatively to SBI's quarterly results and continued uncertainty surrounding crude oil prices and geopolitical developments in West Asia.

SBI Sparks Banking Selloff

Banking and financial stocks emerged as the biggest drag on benchmark indices during the session.

State Bank of India plunged 6.74% to close at ₹1,018.40 after treasury income weakness overshadowed stable core banking performance in its March quarter earnings.

The weak earnings triggered broader selling across financial counters. HDFC Bank declined 1.89%, Axis Bank fell 1.76%, Bajaj Finance slipped 1.88% and Shriram Finance ended 1.24% lower.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said the Nifty remained confined within a narrow range throughout the session after opening gap-down, signalling a lack of strong buying conviction.

He added that the index failed to sustain above its 50-day EMA, while momentum indicators such as RSI and ADX continue to remain flat, reinforcing the ongoing sideways bias in the market.

Metals, Infra and Energy Stocks Add Pressure

Weakness was also visible across metal, infrastructure and energy counters.

Coal India declined 2.07%, UltraTech Cement fell 1.61%, ONGC slipped 1.62% and Larsen & Toubro ended 1.12% lower.

Investor sentiment remained cautious amid fluctuating crude oil prices and uncertainty surrounding developments linked to Iran and the broader Middle East region.

Selective buying in IT, healthcare and consumer-facing stocks helped limit sharper losses in the benchmark indices.

Titan surged 4.86%, Apollo Hospitals gained 3.42%, Asian Paints rose 2.74% and Infosys advanced 1.44%.

Shah noted that despite weakness in frontline indices, broader markets continued to outperform. The Midcap index touched a fresh all-time high during the session, while the Smallcap index extended gains for the fourth straight trading day.

However, market breadth remained weak overall, with 286 stocks from the Nifty 500 universe ending in the red.

Technical Outlook Remains Weak

Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty slipping below its 50-day EMA again signals renewed weakness in sentiment.

He added that the RSI has re-entered a bearish crossover on the daily chart, while heavy call writing around the 24,200 strike indicates cautious positioning by traders.

According to De, if the Nifty sustains below 24,200, the index could correct further towards the 24,050-24,000 zone. However, a move back above 24,200 may trigger a short-term recovery towards 24,350-24,400.