India's equity markets closed lower on Friday as weakness in IT and technology stocks, along with pressure in parts of the oil and gas complex, pushed benchmark indices into negative territory.
At the National Stock Exchange close, the Nifty 50 was down 0.64%. On the Bombay Stock Exchange, the Sensex 30 lost 0.78% by the end of trade.
Top and bottom performers
On the Nifty 50, Eternal Ltd (NSE:ETEA) led the winners, rising 2.26% or 5.85 points to finish at 264.40. Telecom major Bharti Airtel Ltd. (NSE:BRTI) added 1.61% or 30.20 points to settle at 1,905.00, while Power Grid Corporation of India Ltd (NSE:PGRD) gained 1.35% or 3.90 points to close at 292.60.
Conversely, the session's weakest performers on the Nifty were dominated by large-cap IT names. Infosys Ltd (NSE:INFY) tumbled 6.48% or 73.10 points to end at 1,054.40, marking a move to a five-year low on the NSE. Tata Consultancy Services Ltd. (NSE:TCS) declined 3.04% or 67.00 points to finish at 2,136.30, and HCL Technologies Ltd (NSE:HCLT) fell 2.73% or 31.70 points to close at 1,130.10.
On the BSE Sensex 30, Eternal Ltd (BO:ETEA) was among the top gainers as well, up 1.90% to 263.40. Bharti Airtel Ltd (BO:BRTI) rose 1.51% to 1,903.05, and Power Grid Corporation of India Ltd (BO:PGRD) added 1.25% to close at 292.20.
The worst performers on the BSE included Infosys Ltd (BO:INFY), which fell 6.41% to 1,055.00 in late trade and reached a five-year low on that exchange as well. Tata Consultancy Services Ltd. (BO:TCS) lost 3.05% to settle at 2,137.00, while HCL Technologies Ltd (BO:HCLT) dropped 2.55% to 1,132.00 at the close.
Breadth and volatility
Market breadth on the National Stock Exchange showed more advancing issues than decliners, with 1,405 stocks rising and 1,118 declining; 55 ended unchanged. On the Bombay Stock Exchange, 2,121 shares gained, 1,835 fell and 179 were unchanged.
The India VIX, a measure of implied volatility for Nifty 50 options, moved higher by 0.81% to 12.77, signaling a modest uptick in expected near-term volatility.
Commodities and currencies
In commodities trading, August gold futures fell 1.73% or 73.45 to $4,172.45 a troy ounce. In energy markets, crude oil for July delivery rose 0.25% or 0.19 to $76.79 a barrel, while the August Brent contract retreated 0.55% or 0.44 to $79.41 a barrel.
FX moves were small. The USD/INR pair eased 0.01% to 94.32 and EUR/INR ticked down 0.01% to 108.07. US Dollar Index Futures were down 0.01% at 100.61 by the close.
Key points
- Benchmark indices finished the session lower: Nifty 50 down 0.64% and BSE Sensex down 0.78%.
- IT and technology names were the main drags, with Infosys posting a sharp decline to five-year lows on both exchanges.
- Among gainers, Eternal, Bharti Airtel and Power Grid recorded session gains, while commodities and currency moves were mixed.
Risks and uncertainties
- Elevated implied volatility: India VIX rose 0.81% to 12.77, indicating slightly higher market uncertainty going forward - a factor particularly relevant for equity and options traders.
- Concentrated downside in IT sector: Large declines in major IT names, including a multi-percent fall in Infosys to five-year lows, present downside risk for the broader technology sector.
- Commodity price shifts: Divergent moves in gold and crude could add to market uncertainty, affecting sectors linked to energy and metals.
Data in this report reflect the closing prices and intraday movements reported at the end of the trading session on Friday.