Sensex drops 1,048 points, Nifty falls 1.3%; Hindalco, HUL, Adani Enterprises among top laggards

Benchmark equity indices Sensex and Nifty fell over 1% on Friday, dragged down by broad-based selling across sectors, with metal, IT and commodity stocks leading the decline amid weak global cues.

The 30-share BSE Sensex dropped 1,048.16 points, or 1.25%, to end the session at 82,626.76. During the day, it slipped as much as 1,140.37 points, or 1.36%, touching an intraday low of 82,534.55.

Similarly, the NSE Nifty 50 declined 336.10 points, or 1.30%, to close at 25,471.10. The index had fallen 362.9 points, or 1.4%, to hit an intraday low of 25,444.30.

Among the major losers, Hindalco Industries declined 6.08%, Hindustan Unilever fell 4.34%, Eternal slipped 4.30%, Adani Enterprises dropped 3.83%, and ONGC was down 3.20%. In contrast, Bajaj Finance, Eicher Motors, SBI Life Insurance, State Bank of India and Cipla were among the few stocks that ended the day with gains. Bajaj Finance gained 3%, while Eicher Motors gained 1.56%. 

Across sectors, the mood remained weak, with all major indices closing lower. Energy, metal and realty stocks were hit the hardest, falling 2–3% each. Meanwhile, IT, consumer durables, FMCG, telecom, infrastructure, auto, power, PSU and oil & gas indices declined about 1% each.

What analysts have to say

According to Ponmudi R, CEO, Enrich Money, the sharp decline was largely driven by intensifying global concerns over AI-led disruption to India’s outsourcing model, which triggered heavy selling in IT heavyweights, including Infosys, TCS, HCLTech, Wipro, and Tech Mahindra. Spillover weakness from U.S. technology stocks, coupled with cautious Asian cues, further reinforced the negative undertone.

“Additional pressure stemmed from a firm U.S. dollar and mild rupee depreciation, prompting defensive positioning and selective profit booking across banking, financials, autos, FMCG, metals, and energy counters. Although January retail inflation eased to 2.8% under the revised CPI base — a constructive domestic macro signal — the positive data print proved insufficient to offset prevailing global uncertainties. Overall, the near-term fundamental tone remains cautious, with heightened risk aversion, defensive rotation, and consolidation dominating market dynamics,” he said.

According to him, the correction was broad-based but disproportionately led by high-beta and growth-oriented sectors. Metals and mining stocks noted sharp declines, reflecting global commodity softness and concerns over Chinese demand trends. Energy counters weakened on crude volatility, while autos, FMCG, banking, and financial stocks witnessed steady profit booking amid the broader risk-off cascade. 

On Thursday, the 30-share BSE Sensex declined 558.72 points to settle at 83,674.92. The 50-share NSE Nifty declined 146.65 points to end at 25,807.20.