Weak Q1 numbers from Axis Bank and FII selling weigh on broader market sentiment; financial stocks see sharp intraday decline.
Markets slipped into negative territory on Friday, July 18, as Axis Bank’s Q1 FY26 results disappointed Street expectations, triggering a sharp selloff in financials. The Sensex dropped 530 points to close at 81,728.54, while the Nifty 50 breached the psychological 25,000 mark, settling at 24,961.10, down 150 points. Rising oil prices, cautious global cues, and persistent FII outflows further added to the bearish undertone. Traders are bracing for volatility ahead of Reliance Industries’ Q1 results later in the day.
Market Reaction & Technical View
Axis Bank fell nearly 6% intraday, posting a net profit decline of 4% YoY amid margin pressure and tepid advances growth. The stock saw a surge in F&O short positions and weak delivery volumes, indicating bearish sentiment. Technically, the stock breached its 200-DMA at ₹1,155, with immediate support now seen near ₹1,100, and resistance at ₹1,180.
“The weak result has dented sector confidence. Unless Axis reclaims ₹1,180 on closing basis, downside risk remains,” said a technical analyst at Motilal Oswal. In contrast, Wipro gained 4% after posting an 11% YoY rise in Q1 PAT, with bullish rollover activity seen in the July futures.
Also Read : Reliance Industries Set for Strong Q1; O2C Division Poised for Turnaround
Sectoral Impact & Broader Indices
Nifty Private Bank index fell over 1.3%, with selling pressure in Kotak Mahindra Bank, HDFC Bank, and Shriram Finance. Broader financial indices, including Bank Nifty, were under pressure, dragging overall market breadth lower—2,118 stocks declined on BSE against 1,370 advancers. Other sectors like FMCG, Pharma, and Capital Goods also closed in the red. The Media and Metals sectors were the only pockets of strength, with Tata Steel and ONGC gaining amid firm global commodity prices.
FIIs turned net sellers for the week, dumping ₹1,492 crore worth of equities on Thursday, amid global caution over the US Fed’s next policy move and rising geopolitical tensions.
Trading View & What to Watch Next
Traders are watching for Reliance Q1 results post-market hours and US Fed commentary early next week for further direction. The Nifty must reclaim 25,150–25,200 for any bullish reversal.
Watchlist:
Reliance Industries: Q1 results due today; key for index sentiment.
YES Bank: Eyes ₹23.40 resistance amid stake hike talks by SMBC.
Polycab India: Strong Q1; ₹7,700 target by Citi, watch for breakout above ₹6,950.
