Benchmark stock market indices fell sharply in early trade on Friday, with the Sensex dropping more than 600 points as heavy selling in banking, metal and infrastructure stocks dragged the market lower.
At around 9:23 am, the BSE Sensex was down 680 points at 75,354, while the NSE Nifty50 slipped 217 points to 23,421.
The , even as a few defensive stocks limited deeper losses.
Banking stocks were among the biggest laggards in early trade, putting significant pressure on the benchmark indices.
Shares of HDFC Bank fell over 1.6%, while ICICI Bank, Axis Bank, Kotak Mahindra Bank, and State Bank of India also traded in the red. Since financial stocks carry heavy weightage in the indices, their decline dragged both the Sensex and Nifty lower.
Financial stocks have seen some profit booking in recent sessions after earlier gains, which has contributed to the weakness.
Metal and infrastructure stocks also witnessed notable declines during the session. Shares of Larsen & Toubro dropped over 2.5%, while metal stocks such as Hindalco, Tata Steel, and JSW Steel were also trading lower.
Auto stocks were also under pressure, with Maruti Suzuki, Mahindra & Mahindra, Eicher Motors, and Bajaj Auto trading lower in early trade. Meanwhile, IT stocks such as Infosys, TCS, HCLTech, and Tech Mahindra also slipped, adding to the market’s losses.
Despite the broader market weakness, pharmaceutical stocks showed relative resilience during the session.
According to Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, global uncertainties and sustained foreign investor selling are weighing on the markets.
“With the heightened uncertainty surrounding the West Asian conflict continuing, global markets are weak and in uncharted territory. Weakness in the US markets indicates that a rebound in the market is some time away. With Brent crude around $100, bulls are on the defensive. With FIIs persisting with their sustained selling strategy, even large-cap bluechips are under pressure,” he said.
He noted that pharmaceuticals are one of the few sectors holding up amid the volatility.
“One segment that is weathering the storm is pharmaceuticals. This sector is not impacted by external headwinds. In fact, rupee depreciation is a positive for the sector, which is a major exporter. It appears that portfolio churns are happening in favour of pharmaceuticals,” Vijayakumar added.
He also advised investors to stay patient during the current volatility.
“There is nothing much investors can do in these challenging times other than remaining calm and continuing with systematic investment,” he said.