Sensex tanks 600 pts, Nifty below 25,000; Axis Bank down 4%, Wipro up 3% on Q1 beat

Laggards on the index included Axis Bank, Bharti Airtel, Bharat Electronics, Apollo Hospitals, and Kotak Mahindra Bank.

Benchmark indices Nifty and Sensex plunged on July 18, dragged down by a broad-based selloff that saw 12 of 13 sectoral indices deep in the red. The Nifty breached the 25,000 mark for the first time since June 24, signalling a shaky end to the week.

At about 10:25 am, the Sensex was down 537.04 points or 0.65 percent at 81,722.20, and the Nifty was down 153.80 points or 0.61 percent at 24,957.65. About 1173 shares advanced, 2005 shares declined, and 154 shares remained unchanged.

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"Global uncertainty and a muted start to the earnings season are weighing on investor sentiment. However, sustained liquidity inflows are helping to cushion the downside. This is evident in the current market environment, where a divergent trend is visible—while the benchmark index is under pressure, mainly due to weakness in heavyweight IT stock," Ajit Mishra, Senior Vice President at Religare Broking, said. "At the same time, rate-sensitive sectors like auto, realty, and select banking, along with continued interest in defensives like FMCG and pharma, are not only limiting the losses but also offering ample long-side trading opportunities," he added.

Most NSE sectoral indices slipped into the red on Friday. The Nifty Bank and Private Bank indices were among the worst performers, falling 0.91 percent and 1.33 percent, respectively. Consumer durables, energy, infra, FMCG, IT, and oil & gas sectors also slipped between 0.2 and 0.7 percent.

The Nifty Auto index was marginally down 0.15 percent, while the Nifty Midcap 100 and Smallcap 100 shed 0.57 percent and 0.63 percent, respectively. On the positive side, the Nifty Realty index bucked the trend with a 0.45 percent gain. India VIX rose over 4 percent, indicating heightened market volatility.

As for individual stocks, Wipro gained over 3 percent after the company reported a June quarter performance that was better than expected, driven by strong execution of large deals. However, brokerages remain in a wait-and-watch mode as the management has guided for a stronger recovery in the second half of this fiscal year.

Also read: India a 'standout investment destination' amid global volatility: KKR

Axis Bank shares slid 4 percent after lender posted a weak set of numbers for the June quarter. Profit and net interest income (NII) growth were muted, fresh slippages increased sharply owing to a technical impact, and margins contracted. Brokerages expressed disappointment over the Q1 performance and downgraded their ratings on the stock. The Global Depositary Receipts (GDRs) of Axis Bank also tumbled 5 percent to $64.3 on July 18 after the bank's asset quality worsened during the June quarter.

Shares of Polycab India rallied 2 percent after Citi Research and UBS dished out bullish calls on the stock following its first quarter earnings. Net profit for the quarter increased by 50 percent from the year-ago quarter to Rs 600 crore, while revenue from operations for the quarter increased by 25.7 percent to Rs 5,906 crore.

From a technical perspective, the psychological support of 25,000 remains intact, while the 25,350 mark continues to act as a formidable ceiling. Until the index breaks out from this congestion zone, significant directional moves are unlikely to unfold. From a technical standpoint, Nifty continues to trade below its 10-day and 20-day exponential moving averages, both of which are near the 25,250 mark. This highlights the persistent selling pressure near the upper boundary of the current range.

Read more: Perplexity deal gives Airtel dual win: AI branding and monetization potential, say analysts

Tata Steel, Wipro, Bajaj Finance, M&M, and IndusInd Bank were the top gainers on the Nifty. Laggards on the index included Axis Bank, Bharti Airtel, Bharat Electronics, Apollo Hospitals, and Kotak Mahindra Bank.

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