New Delhi, July 19
Domestic equity markets continued their protracted correction for the third consecutive week and ended below the psychological level of 25,000, weighed down by the broadly tepid start of Q1FY26 earnings, particularly from the IT and financial sectors, analysts said on Saturday.
The IT sector remained under strain due to muted performance and cautious outlooks amid global demand uncertainty, while financials are also expected to report subdued results due to expected NIM contraction and asset quality concerns.
“In contrast, FMCG stocks outperformed, supported by encouraging growth guidance that points to a possible revival in urban consumption trends. Improved earnings momentum supported by macroeconomic tailwinds can shift investor preferences towards consumption stocks,” said Vinod Nair, Head of Research, Geojit Investments Limited.
On Friday, Indian benchmark indices ended on a weak footing, with the Nifty slipping below the crucial 25,000 mark amid broad-based selling pressure. The Sensex declined 501.51 points, or 0.61 per cent, to settle at 81,757.73, while the Nifty shed 143.05 points, or 0.57 per cent, to close at 24,968.40.
Excluding Media and Metal, all sectoral indices closed in the red, with pronounced weakness in Pharma, Private Banks, PSU Banks, FMCG, Capital Goods, Consumer Durables, and Telecom, which lost between 0.5 per cent and 1 per cent.