Markets erase bulk of intraday losses but end lower for fifth day as oil, earnings weigh

Indian equity benchmarks staged a strong recovery from their intraday lows on Friday but failed to end in positive territory, as elevated crude oil prices, geopolitical tensions in West Asia and earnings-led selling continued to weigh on investor sentiment.

The BSE Sensex fell 331.62 points, or 0.43%, to close at 76,059.77, while the NSE Nifty50 declined 102.15 points, or 0.43%, to settle at 23,767.45, extending losses for the fifth consecutive session.

For the week, the Sensex tumbled 2,091.68 points, or 2.68%, while the Nifty50 lost 566.85 points, or 2.33%.

Friday's weakness followed a gap-down opening after Brent crude briefly crossed the $100-a-barrel mark overnight, stoking concerns over inflation and global growth. Although Brent later retreated to around $97 per barrel, uncertainty surrounding supply disruptions and geopolitical developments kept investors cautious through the day.

Benchmarks recover over 500 points from day's low

The sell-off intensified in morning trade, with the Sensex plunging as much as 916.96 points to an intraday low of 75,474.43, while the Nifty slipped to 23,606.90.

However, markets witnessed a sharp turnaround in the second half of the session. The Sensex recovered nearly 585 points from its day's low, while the Nifty rebounded more than 160 points, briefly reclaiming the 23,800 level before giving up part of the gains in the final hour.

The rebound was largely led by heavyweight banking and information technology stocks, helping benchmark indices erase a substantial portion of their early losses.

Market volatility also remained elevated, with the India VIX rising over 3% to around 13.9, indicating investors continued to hedge against near-term uncertainty.

Banks, IT outperform; autos remain under pressure

Financials and IT emerged as the day's relatively stronger pockets. The Nifty Bank index outperformed the broader market, ending in positive territory after recovering from early weakness, while IT stocks bounced back from intraday lows despite pressure on Infosys .

HCLTech , ITC , Axis Bank and Tata Consultancy Services were among the top gainers on the Nifty.

On the other hand, auto stocks extended losses as investors booked profits, while metal and realty counters also remained under pressure. Eternal, Mahindra & Mahindra , Bajaj Finance , Bharti Airtel , Asian Paints and Infosys figured among the biggest laggards.

Stock-specific action remains in focus

Infosys remained under pressure after the company trimmed the upper end of its FY27 revenue growth guidance following its June-quarter earnings, dampening sentiment towards the stock.

Food delivery stocks Eternal and Swiggy also declined after reports that Walmart-backed Flipkart is preparing to enter the online food delivery segment, raising concerns over heightened competition.

Meanwhile, Shriram Finance slipped after reporting a mixed set of June-quarter results.

According to Vinod Nair, head of research at Geojit Investments Ltd, markets are likely to remain under pressure in the near term as elevated crude oil prices could begin to affect macroeconomic indicators.

"Washington’s new tariffs on imports added another headwind for export-driven economies, with technology-heavy markets having been hit the most as higher rates weigh on growth and investors are increasingly seeking to diversify their concentrated exposure to other emerging market opportunities," he added.