Sensex, Nifty fall for 2nd day on selling in Axis Bank, Indo-Pak border tensions
Mumbai, Apr 25 (PTI): Equity benchmark indices Sensex and Nifty declined sharply on Friday due to selling in Axis Bank and growing tensions along the Indo-Pak border following the terror attack at Pahalgam in Jammu & Kashmir.
Wiping out early gains, the 30-share BSE barometer tanked 588.90 points or 0.74 per cent to settle at 79,212.53. During the day, it dropped 1,195.62 points or 1.49 per cent to 78,605.81.
Falling for the second day, the NSE Nifty tumbled 207.35 points or 0.86 per cent to 24,039.35.
Experts said worries over growing geopolitical tensions after Tuesday's Pahalgam terror attack weighed on market sentiment.
All sectoral indices except for IT index closed in the red while midcap and smallcap indices dropped more than 2 per cent due to profit taking.
"Investor sentiment turned cautious amid escalating tensions along the Indo-Pak border. Mid and smallcap stocks bore the brunt of the sell-off, driven by their elevated valuations and growing concerns over potential earnings downgrades following a muted start to the earnings season," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Among Sensex shares, Adani Ports, Axis Bank, Eternal, Bajaj Finserv, Power Grid, Maruti, Bajaj Finance, Tata Motors, Tata Steel and NTPC were the biggest laggards.
Axis Bank declined over 3 per cent after the country's third largest private sector lender reported a sharp rise in loan loss provisions and a steep fall in the trading income for the last quarter of 2024-25. The bank's profit declined marginally in the March quarter to Rs 7,117 crore, from Rs 7,130 crore in the year-ago period.
However, Tata Consultancy Services, Infosys, Tech Mahindra, UltraTech Cement, IndusInd Bank, Hindustan Unilever and ICICI Bank were the gainers.
Despite Nifty opening at a higher level on Friday, geopolitical tensions with the neighbouring nation have led to the drop in the index, Ajay Garg, CEO, SMC Global Securities, said.
"In the last few days, Nifty has also revived to 24,000 points with FII buying, banking stocks rally, and expectations of a positive outcome from the US-India trade talks. Along with the geopolitical tensions, profit-booking by investors also added to today’s market drop," Garg added.
"The heightened geopolitical uncertainty has led investors to adopt a risk-off approach, triggering profit-booking after the recent sharp rally. Furthermore, the markets appeared slightly overstretched following the vertical rise, prompting traders to reduce exposure," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
The BSE smallcap gauge tanked 2.56 per cent and midcap dropped 2.44 per cent.
Among BSE sectoral indices, services dropped 3.11 per cent, utilities (2.96 per cent), realty (2.87 per cent), power (2.77 per cent), consumer discretionary (2.28 per cent), industrials (2.19 per cent) and capital goods (2.06 per cent).
IT and BSE Focused IT ended higher.
As many as 3,246 stocks declined while 719 advanced and 119 remained unchanged on the BSE.
In Asian markets, South Korea's Kospi index, Tokyo's Nikkei 225 and Hong Kong's Hang Seng settled in the positive territory. Shanghai SSE Composite ended marginally lower.
Markets in Europe were trading higher.
US markets ended significantly higher on Thursday. Nasdaq Composite jumped 2.74 per cent, S&P 500 surged 2.03 per cent and Dow Jones Industrial Average climbed 1.23 per cent.
Foreign Institutional Investors (FIIs) bought equities worth Rs 8,250.53 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude declined 0.50 per cent to USD 66.24 a barrel.
On Thursday, the 30-share BSE benchmark Sensex declined 315.06 points or 0.39 per cent to settle at 79,801.43 on Thursday. The Nifty went down by 82.25 points or 0.34 per cent to 24,246.70.
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Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
