Markets snapped a three-week winning streak, but defense stocks, L&T, Titan, and Tata Motors ended with gains, and midcaps staged a late recovery.
Indian equity benchmarks ended lower by 1% on Friday, as reports of multiple overnight drone and munition attacks by Pakistani forces along India’s western border rattled investor confidence.
With concerns of a military escalation mounting, the markets snapped a three-week winning streak.
The India Volatility Index (VIX), which had surged sharply in the past sessions, moderated to close just 1% higher, signaling some uncertainty easing toward the end of the day.
The Nifty 50 held the 24,400 mark at close, while the Sensex dropped 880 points to end at 79,454.
Midcaps staged a surprising comeback—the Nifty Midcap index recovered over 1,000 points from the day’s low and closed flat.
Sectorally, PSU banks, consumer durables, and defense-related stocks saw buying interest.
Real estate shares, however, came under pressure and dragged the broader indices.
Retail sentiment surrounding the Nifty 50 on Stocktwits, which had turned ‘bearish’ earlier in the day, recovered to ‘neutral’ by the close.
Interestingly, foreign institutional investors (FIIs) have remained net buyers, pumping in ₹11,656 crore in the first five sessions of the month. This marked their 15th straight day of net inflows, indicating long-term confidence despite geopolitical tremors.
Defense and shipbuilding stocks were standout performers, with the Nifty Defense Index gaining 4%. Top gainers included: DCX Systems (+9%), Paras Defence, Bharat Forge, BDL, Data Patterns (each up ~5%), Mazagon Dock, Cochin Shipyard (up 4%).
In earnings movers, Titan surged 5% after reporting an 11% YoY rise in fourth-quarter (Q4) net profit, strong revenue growth, and receiving positive brokerage upgrades.
L&T jumped 4% on a 25% rise in Q4 profit, record order inflows, and a dividend announcement.
Tata Motors rose for the third consecutive session, buoyed by optimism surrounding the India-U.K. Free Trade Agreement. The stock has gained 8% this week.
In other notable movers, Yes Bank rallied 10%. Post the closing bell, SBI announced it will sell a 13.19% stake in the private lender to Sumitomo Mitsui Banking Corporation (SMBC). The lender held a 23.97% stake in Yes Bank as of the end of March.
SEBI-registered adviser Financial Sarthis highlighted that Nifty ended above its 20-day exponential moving average (EMA), a level that often acts as support during the first re-test. If this level continues to hold, this opens the door for a potential upside early next week.
They also note that a break below Friday’s low could trigger a fresh wave of selling. Traders must watch this level closely for downside signals.
Globally, European markets traded higher, while U.S. stock futures pointed to a cautious start. Investors are closely watching the U.S.-China trade talks scheduled over the weekend.
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