Sensex falls over 400 points as banking and IT stocks weaken
Rising crude oil prices and West Asia tensions pressure market sentiment
Midcap stocks stay resilient despite continued FII selling in largecaps
Sensex Falls 400 Points as US-Iran Tensions, FII Selling Weigh
Nifty slips below 24,200 amid rising crude prices, weak rupee and continued pressure on banking heavyweights
Market
Summary
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Indian benchmark indices opened sharply lower on Friday, dragged down by weakness in banking and IT stocks amid continued foreign investor selling and lingering geopolitical uncertainty in West Asia.
The BSE Sensex fell 422.11 points or 0.54% to 77,422.41 in early trade, while the NSE Nifty50 slipped 129 points to 24,197.65, falling below the crucial 24,200 mark.
Banking heavyweights remained under pressure, extending recent losses in frontline financial stocks, while weakness in IT counters further weighed on benchmark indices.
Banking, IT Stocks Drag Benchmarks Lower
Among the biggest drags on the Nifty were Coal India, Mahindra & Mahindra, Axis Bank, HDFC Bank and Eicher Motors.
On the other hand, Tata Consumer Products, Asian Paints, Bharat Electronics, Tech Mahindra and Wipro featured among the top gainers in early trade.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the continued geopolitical uncertainty in West Asia is keeping markets volatile, with crude oil prices swinging in response to developments in the region.
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He noted that while global markets such as South Korea and Taiwan are outperforming due to the ongoing AI-driven rally, India continues to lag because of energy-related concerns and sustained foreign portfolio investor selling in banking and IT heavyweights.
According to Vijayakumar, the divergence between strong broader market performance and weak benchmark indices is likely to continue as long as FPIs remain net sellers.
Oil Prices Rise
Crude oil prices edged higher again after fresh clashes between the US and Iran raised concerns over supply disruptions.
WTI crude futures climbed towards $96 per barrel after US Central Command confirmed defensive strikes and interception of Iranian attacks near the Strait of Hormuz.
Reports also suggested that Iran is expected to respond within two days to a US-backed proposal aimed at reopening Hormuz and easing tensions in the region.
The International Energy Agency warned that the ongoing conflict is disrupting nearly 14 million barrels per day of global oil supply, adding to uncertainty in energy markets.
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The Indian rupee also came under pressure, opening 33 paise weaker at ₹94.58 against the dollar compared to the previous close of ₹94.25.
Broader Market Strength Continues
Despite weakness in headline indices, broader market resilience remained visible.
Vijayakumar highlighted that the Nifty Midcap index has continued to outperform and recently touched record highs despite elevated valuations, reflecting sustained domestic participation in broader market stocks.
Investors are also expected to track quarterly earnings announcements from several major companies including State Bank of India, Titan Company, Tata Consumer Products, Hyundai Motor India, Bank of Baroda and ABB India later in the day.