Mumbai: Indian equity markets ended lower for the fourth consecutive trading session on Thursday, with selling pressure across banking, financial and mid-cap stocks dragging the benchmark indices lower.
After a volatile session, the Sensex dropped 394 points to close at 76,365, while the Nifty declined 127 points to settle at 23,870.
The weakness was not limited to a few stocks, as selling was visible across most sectors.
Market Breadth Turns Weak
The broader market reflected the extent of the selling pressure.
The advance-decline ratio stood at 1:2, meaning that for every stock that gained, two stocks ended lower.
Out of the 50 Nifty stocks, 30 closed in the red. Adani Enterprises, Nestlé India and Shriram Finance were among the biggest losers.
Banking Stocks Under Pressure
Banking and financial stocks remained the biggest drag on the market.
The Bank Nifty declined 535 points to close at 56,592, as rising bond yields and currency-related concerns weighed on financial stocks.
Since banking stocks have a significant weight in the benchmark indices, the sector's weakness made it difficult for the broader market to recover.
IndusInd Bank Slumps Despite Results
IndusInd Bank reported a healthy set of quarterly earnings, but its shares still fell around 6 percent.
Investors focused on the management's cautious outlook for the coming quarters, which overshadowed the company's financial performance.
In contrast, Ujjivan Small Finance Bank gained more than 5 percent after raising its return on assets (RoA) guidance for FY27.
Mid-Cap Stocks Also Weaken
Selling pressure was equally strong in the broader market.
The Nifty Midcap Index fell 616 points to close at 61,685, reflecting weakness in medium-sized companies.
The broad-based decline suggested that investors were reducing exposure across sectors rather than selling only select stocks.
Crude Oil Rise Hurts Key Sectors
Higher crude oil prices added to market concerns.
Shares of paint companies, oil marketing companies and airline operators came under pressure as rising crude prices could increase raw material and fuel costs.
InterGlobe Aviation (IndiGo), oil marketing companies and HPCL declined by around 2 percent during the session.
SRF and Petronet LNG Decline
SRF emerged as one of the biggest losers, with its shares falling 8 percent after the company indicated that its second and third-quarter performance could be weaker than the first quarter.
Meanwhile, Petronet LNG slipped 4 percentfollowing reports that QatarEnergy may extend the force majeure period related to LNG supplies, raising concerns about future deliveries.
A Few Bright Spots
Despite the weak market, a few stocks delivered strong gains.
Bajaj Auto was the top gainer in the Nifty index as auto stocks remained resilient.
SBI Life Insurance rose nearly 3% ahead of its quarterly results, while Tips Music recovered Wednesday's losses with an 8% gain.
NTPC Green also climbed around 6% after its quarterly earnings received a positive market response.
Weak Close, But Stock-Specific Opportunities Remain
Although the market ended with another sharp decline, the day's trading highlighted that company-specific developments continued to drive individual stock performance.
While banking, financials and mid-cap stocks remained under pressure, positive earnings, improved guidance and strong business updates helped a handful of stocks outperform despite the broader market weakness.
