GUWAHATI: Equity benchmark indices Sensex and Nifty declined sharply on Friday, April 25, extending losses for the second consecutive session as geopolitical tensions between India and Pakistan intensified. The 30-share BSE Sensex fell 1,195.62 points, or 1.5 percent, to settle at 78,605.81, while the NSE Nifty dropped 398.85 points, or 1.64 percent, to close at 23,847.85.
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The market had opened on a positive note earlier in the day, supported by foreign fund inflows and a global rally. Sensex touched an intraday high of 80,130.66, up 329.23 points, and Nifty climbed 118.75 points to 24,365.45. However, gains were quickly reversed amid investor concerns over escalating Indo-Pak tensions and weak earnings data.
Tensions along the Line of Control (LoC) escalated following retaliatory shelling by Indian forces after reported Pakistani firing on Thursday night. This followed the terror attack in Pahalgam, Jammu and Kashmir, on Monday, 22 April, which left 26 people dead, most of them tourists. India has since suspended the Indus Waters Treaty and downgraded diplomatic ties with Pakistan, prompting market uncertainty.
Axis Bank, Adani Enterprises, Adani Ports and SEZ, Jio Financial Services, and Trent led intraday losses, falling up to 6 percent. The Nifty Bank index was among the worst hit, losing nearly 1.6 percent. Axis Bank fell over 3.5 percent after reporting a slight year-on-year dip in net profit to ₹7,117 crore for the March quarter.
Traders also attributed the decline to other factors such as weak fourth-quarter earnings. An analysis of 111 companies, excluding energy and financial sectors, showed just 6 percent year-on-year growth in operating profit — the slowest in five quarters and the seventh straight quarter of single-digit growth.
Profit-booking further contributed to the market decline, following a strong rally over the past seven sessions. Eleven of the twelve Nifty Bank stocks ended in the red, with IndusInd Bank being the only gainer, trading marginally higher.
