The BSE Sensex shed 573 points on Thursday to settle at 81,119, while the NSE Nifty 50 lost 170 points to close at 24,719. For the week, both indices recorded a decline of around 1%, with the broader Nifty Bank and the Nifty Midcap index underperforming, dropping about 2% each.
Market sentiment turned risk-averse midweek following reports of escalating tensions in the Middle East, which prompted investors to move away from rate-sensitive and economically exposed sectors such as banking and capital markets. HDFC Bank, Kotak Mahindra Bank, and IndusInd Bank were among the primary drags on the Nifty Bank index, which ended Thursday’s session 555 points lower at 55,527.
Broader Market Under Pressure; 35 of 50 Nifty Stocks End Lower
The market breadth remained firmly negative through the week, with the advance-decline ratio slipping to 1:2 by Thursday’s close. A total of 35 Nifty constituents delivered negative returns this week, with shares of Eicher Motors, Adani Ports, and Tata Steel emerging as the worst performers on the index.
Capital market-linked firms continued to come under intense selling pressure. Shares of brokerage and financial services companies including Angel One, BSE Ltd, Central Depository Services Ltd (CDSL), and CAMS were among the top midcap laggards, posting notable weekly declines.
Meanwhile, Paytm and United Spirits Ltd (USL) also featured prominently on the list of midcap underperformers, as broader economic and sector-specific headwinds weighed.
Pharma, IT Provide Defensive Support
Despite the weak overall sentiment, select defensives offered pockets of strength. Nifty sectoral indices for Pharmaceuticals and Information Technology ended the week with gains of 2% to 3%, supported by resilient demand outlooks and a favourable global macro environment.
Among the top Nifty gainers this week were Tech Mahindra, ONGC, Wipro, Grasim Industries, HCLTech, and Dr. Reddy’s Laboratories, all of which posted gains despite broader market softness.
Oil & Defence Stocks Advance; Gold Financiers Shine
Crude oil prices climbed higher on supply disruption fears, leading to divergent moves in oil-linked stocks. Upstream oil producers advanced on expectations of improved realizations, while downstream refiners witnessed selling pressure due to margin concerns.
Defence-related counters saw renewed interest amid rising geopolitical risk, with Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL) both gaining about 2% on the week.
Gold financiers such as Manappuram Finance gained up to 3%, tracking strength in global precious metal prices.
Stock-specific Action Remains High
Zee Entertainment extended its upward trajectory ahead of its scheduled board meeting on June 16, rising nearly 9% for the week amid optimism around strategic decisions or restructuring.
Jubilant FoodWorks and Jubilant Ingrevia saw strong buying interest, whereas Jubilant Pharmova declined sharply following block deal-related selling pressure.
Aviation major InterGlobe Aviation Ltd (IndiGo) slipped over 4% during the week amid concerns about promoter stake sales and a concurrent rise in global crude oil prices, which could potentially compress aviation fuel margins.
