The Indian stock market resumed its losing streak in Friday’s session, with key averages losing all of their previous day’s gains as the war in the Middle East continued to worsen as it entered its seventh day, keeping investor sentiment fragile.
The Nifty 50 and BSE Sensex both lost 1.20% and 1.39%, respectively, while the broader markets exhibited a weak trend but still outperformed the benchmark indices. The Nifty Midcap 100 fell 0.69%, while the Nifty Smallcap 100 index closed 0.24% lower.
All major sectoral indices closed in the red, with Nifty Realty losing the most at 2%, while Nifty PSU Bank and Nifty Auto fell by 2% and 1%, respectively.
Tensions in the Middle East show no signs of abating, as both the US and Israel, along with Tehran, announced that they would continue attacking each other, indicating that there could be further escalation in the region. The latest reports indicate that over 1,200 people have already died on Iranian soil, along with dozens elsewhere in the region.
Iran has continued to damage US military sites and target energy infrastructure across Gulf region.
President Donald Trump said he had “no time limits” on how long the war could go on, while Pete Hegseth, the US Defense Secretary, said it had “only just begun,” according to CNN.
US President Donald Trump also said he was not worried about US gas prices rising as a result of the war in Iran.
Realty and gas stocks under pressure
LT Foods was the top laggard among Nifty 500 stocks, falling 8.5% to ₹393.5 apiece, while the recent star performer Tejas Networks also came under pressure, declining 5.6% to ₹465 apiece as investors appeared to book profits in this Tata Group stock following a massive rally.
Shares of Vedant Fashions witnessed renewed selling pressure, falling 5.36% to ₹366.90 apiece. In the previous session, the stock had dropped to an all-time low of ₹360 apiece. It has remained under pressure over the last eight straight months, losing a cumulative 51%.
Godrej Properties was another weak performer on the list, with the stock falling 4.4% to ₹1,667 apiece, while losses in Mahanagar Gas extended into the third straight day as it crashed another 4.30% to settle at the lowest level since early February.
Other key stocks such as Ashok Leyland, Cohance Lifesciences, Sundaram Finance, Info Edge (India), L&T Technology Services, ICICI Bank, Hindustan Petroleum, Eternal, City Union Bank, and 10 other stocks fell over 3% in trade.
Jupiter Wagons leads rally; liquor, defence and railway stocks advance
On the winning side, Jupiter Wagons emerged as the standout performer, surging 17.2% to ₹298 apiece. It was followed by Kirloskar Brothers and Ircon International, which gained 10.2% and 9%, respectively.
Liquor stocks such as Radico Khaitan, United Breweries, and United Spirits rose 7.8%, 6.6%, and 4.8%, respectively, after the Karnataka government announced a shift to a global taxation standard and the complete deregulation of alcohol pricing while presenting the state budget.
Karnataka is planning to introduce an alcohol-in-beverage-based excise duty structure that taxes alcohol based on its strength and reduces pricing categories to eight from 16, while allowing producers to decide prices.
Defence stocks such as Bharat Dynamics, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers, Hindustan Aeronautics, and Cochin Shipyard jumped between 3% and 6%. Likewise, railway stocks such as Titagarh Rail Systems, RailTel Corporation of India, and Rail Vikas Nigam strengthened 3.4%, 3.14%, and 2.4%, respectively.
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