Nifty ends three-week winning streak amid India-Pakistan tensions; Banks drag indices

Indian equity benchmarks snapped a three-week winning streak as rising geopolitical tensions between India and Pakistan weighed on investor sentiment, dragging key indices lower. The Sensex fell nearly 800 points to close at 79,454, while the Nifty declined 266 points to 24,009—both slipping about 1% for the week. The Nifty Bank was hit harder, losing 770 points, or 1.4%, to settle at 53,595.

Rising tensions between India and Pakistan rattled investor sentiment this week, with the Indian government reportedly pressing Islamabad to de-escalate immediately or “pay a heavy price,” according to top sources cited by News18. New Delhi has also reiterated its demand for the extradition of key terror figures, including Jaish-e-Mohammed founder Masood Azhar, his brother Rauf Azhar, and Lashkar-e-Taiba chief Hafiz Saeed.

The midcap index closed nearly flat at 53,223 but managed to recover 2% from its intraday lows, reflecting some resilience in the broader market. However, nearly 40 out of the 50 Nifty stocks ended the week in the red, signalling broad-based pressure across sectors.
Selling was pronounced in the banking sector, with ICICI Bank emerging as the biggest drag on both the Nifty and Nifty Bank indices. Heavyweights Reliance Industries and HDFC Bank also closed about 2% lower, contributing to the weakness in the benchmarks.
Among the top Nifty losers this week were Asian Paints, Sun Pharma, Jio Financial Services, IndusInd Bank, and NTPC. On the other hand, Tata Motors, Titan, Larsen & Toubro, Hero MotoCorp, and Adani Ports provided some support, ending as the top gainers.

Defence stocks bucked the trend amid escalating tensions, with Mazagon Dock Shipbuilders and Bharat Electronics (BEL) gaining around 2% each.

Earnings continued to drive stock-specific moves. Titan rose 4% after posting better-than-expected Q4 numbers, while L&T gained 4% on the back of positive FY26 guidance.

Among other notable movers, Intellect Design rallied 5% from the day’s low after a 93% surge in quarterly profit. Cera Sanitaryware rose 4% following a 15% rise in Q4 profit. Kalyan Jewellers added 2% after strong quarterly earnings, and Lupin edged up over 1% after receiving USFDA approval for its HIV drug Raltegravir.

Zee Entertainment was up 3% after reporting a 42% jump in EBITDA and a 400 bps margin expansion. Meanwhile, Multi Commodity Exchange (MCX) dropped 6% as its Q4 results came in below expectations.

Investors will now look ahead to macroeconomic data and further developments on the geopolitical front to gauge market direction in the coming week.