Last Updated:
Indian equity benchmarks erased early gains and turned sharply lower for the second consecutive session on Friday
Stock Market Crash Today
Sensex Live | Stock Market Today: Indian benchmark indices ended lower for the second straight session on Friday, with the Sensex falling nearly 600 points and the Nifty slipping below the 24,050 mark, as investor sentiment turned cautious following a deadly terrorist attack on tourists in Pahalgam, which heightened geopolitical risks.
The 30-share BSE Sensex declined 588 points, or 0.74%, to close at 79,212, while the broader NSE Nifty dropped 207 points, or 0.86%, to end at 24,039. During the session, the Sensex fell as much as 1,525 points from its intraday high, while the Nifty shed 518 points from its peak.
The total market capitalisation of all listed companies on the BSE dropped by Rs 8.8 lakh crore, settling at Rs 420.83 lakh crore.
Key Reasons Why Sensex, Nifty Fell On April 25:
Rising India-Pakistan Tensions
Indian equity markets faced a sharp downturn on Friday, reversing recent gains as investor sentiment soured amid rising geopolitical tensions and broad-based profit booking. The market’s bearish turn comes on the back of a recent terrorist attack in Kashmir that killed several tourists, raising concerns of a potential escalation in tensions between India and Pakistan.
“Markets have had a remarkable run, moving from a level of 22,000 to above 24,400 on the Nifty. After such a strong rally, a phase of profit booking was expected,” said Kranthi Bathini, Director – Equity Strategy at WealthMills Securities Pvt Ltd. “Now, with heightened geopolitical risks, many investors are opting to book profits and shift to cash positions,” he added.
Valuation Worries Emerge After Sharp Market Rally
The Nifty had surged nearly 8.6% over seven straight sessions before momentum faded on Thursday, largely due to rising geopolitical tensions. While the index still posted a weekly gain of about 1.7%, the rapid rally has triggered concerns over stretched valuations. As a result, investors have begun to lock in profits and adopt a more cautious stance amid signs of market fatigue.
Financial Stocks Lead Market Slide
A steep decline in financial stocks was the key driver behind Friday’s market weakness. Axis Bank, SBI, and Bajaj Finance were the top drags on the Sensex, with additional pressure from Kotak Bank, HDFC Bank, and ICICI Bank. Collectively, these financial heavyweights contributed to more than 360 points of the Sensex’s overall decline.
Axis Bank, in particular, was the biggest loser after posting a marginal dip in March quarter net profit to Rs 7,117 crore, down slightly from Rs 7,130 crore a year ago, disappointing market expectations.
Technical Signs Point to Correction
After seven days of uninterrupted gains, the Nifty showed signs of exhaustion during Thursday’s trade, which also coincided with the monthly expiry for April derivatives. Technical analysts pointed to overbought conditions and noted the formation of a small bearish candle, signaling a lack of conviction among traders.
“With the recent rally now behind, the index seems to be entering a time-wise correction phase,” said Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities. “The Nifty has formed a defined range between 24,000 and 24,500, which may serve as a key decision zone in the near term.”
Earnings Disappoint Across Sectors
Adding to the cautious tone is a lackluster Q4 earnings season. Several major companies have reported weaker-than-expected results, reinforcing investor apprehensions. Hindustan Unilever (HUL) reported just 2% revenue growth and missed profit estimates due to soft urban demand. Axis Bank’s muted earnings, partly due to lower treasury income and slow business growth, further weighed on sentiment. The IT sector has also been under pressure, with companies like Infosys and Wipro issuing weak guidance and reporting tepid revenues. Analysts have subsequently trimmed their earnings forecasts for FY26 and FY27, further dampening optimism.
Global Markets
Asian equities were poised to notch their second consecutive week of gains on Friday, buoyed by growing optimism over a seemingly more measured approach from the White House towards China. Although no formal signs of reconciliation have emerged, the softer rhetoric has been welcomed by investors. Meanwhile, the US dollar appeared set to record its first weekly gain in over a month.
Positive sentiment was further fueled by strong corporate earnings from U.S. tech giant Alphabet, parent of Google, which surpassed profit expectations and reiterated its commitment to AI investments. The stock surged nearly 5% in after-hours trading, lifting peers and pushing S&P 500 futures up by 0.5%.
On Wall Street, despite mixed earnings reports, the S&P 500 ended Thursday’s session with a solid 2% gain. In Asia, Hong Kong’s Hang Seng Index climbed 0.9%, while China’s Shanghai Composite and the blue-chip CSI300 posted modest gains.
FII Tracker
Foreign portfolio investors (FPIs) continued their buying spree in Indian equities, marking the seventh consecutive session of net inflows. On Thursday, FPIs invested a robust Rs 8,251 crore (approximately $968 million), reinforcing strong foreign interest in domestic markets.
