CHENNAI: Indian equity markets closed sharply lower on Friday, July 18, following a volatile trading session. Losses in key private banking stocks, sustained foreign institutional investor (FII) selling, and global uncertainty around US Federal Reserve policy weighed heavily on investor sentiment.
The benchmark BSE Sensex declined 501.5 points, or 0.61%, to settle at 81,757.73. Meanwhile, the broader NSE Nifty50 dropped 143 points, or 0.57%, to end at 24,968.40.
In the broader markets, the Nifty Midcap 100 index fell 0.7%, and the Nifty Smallcap 100 declined by 0.82%, reflecting widespread weakness beyond frontline indices.
Among sectoral indices, Nifty Private Bank was the worst performer, falling 1.46%. Notable declines were seen in Axis Bank, RBL Bank, Kotak Mahindra Bank, and HDFC Bank—all of which dropped over 1.5%. Other sectors including Financial Services, Auto, FMCG, Realty, Energy, Oil & Gas, Consumer Durables, and Pharma also ended in the red. In contrast, Nifty Metal, Media, and IT were the only gainers of the day.
Out of the 30 Sensex stocks, 23 closed in the red. Axis Bank, Bharat Electronics, Kotak Bank, HDFC Bank, Bharti Airtel, and Titan were among the top losers, declining as much as 5.2%. On the upside, Bajaj Finance, Tata Steel, ICICI Bank, HCL Technologies, Infosys, and Mahindra & Mahindra ended with gains.
Investor caution was also visible in the volatility index, India VIX, which rose 1.33% to 11.39. Meanwhile, the Indian Rupee weakened to around 86.15–86.20 per US dollar amid broad-based selling pressure.
The market sentiment remained subdued due to continued FII outflows—over ₹10,000 crore pulled out in the past week—and weak Q1 earnings from Axis Bank. Global cues were mixed despite stronger US economic data, as concerns over interest rate outlook and high crude prices added to market jitters.
Looking ahead, investors will closely watch upcoming earnings from HDFC Bank, Reliance Industries, and JSW Steel, as well as cues from the US Federal Reserve and trends in oil prices. Market volatility may persist in the near term amid a combination of domestic and global uncertainties.