Sensex Slips 600 Points, Nifty Drops Below 24,950 as Weak Axis Bank Results Weigh on Markets

Indian equity markets witnessed a sharp decline on Friday as both Sensex and Nifty came under heavy selling pressure. The fall was largely driven by disappointing Q1 results from Axis Bank, which dented investor sentiment across the financial sector.

Sensex lost over 600 points, while Nifty dropped below the crucial 24,950 mark, reflecting widespread caution among investors.

Axis Bank Earnings Trigger Market Weakness

The major trigger for the market downturn was the weaker-than-expected Q1 earnings from Axis Bank. The private sector lender reported a 3% drop in consolidated net profit, which stood at Rs 6,243.72 crore for the June quarter.

The results were impacted by a change in the classification of non-performing assets (NPAs) and the bank’s loan upgrade policy, which led to investor disappointment and a sharp selloff.

Axis Bank shares tumbled over 6% intraday, making it one of the top losers on the index.

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Selling Pressure Across Financial Stocks

The weakness in Axis Bank spilled over to the broader financial sector. Major financial stocks, including:

• SBI Life Insurance Company

• Shriram Finance

• HDFC Life Insurance Company

• Kotak Mahindra Bank

all saw sharp intraday declines, with some falling up to 6%.

“The negative sentiment from Axis Bank’s earnings impacted the overall financial pack, contributing to broader market weakness,” analysts noted.

Check  This:

• HDFC Life Insurance Stock Price
• Kotak Mahindra Bank Stock Price
• SBI Life Insurance Stock Price

Other Drag Factors: FII Outflows & Global Cues

Beyond the Axis Bank earnings, two other factors weighed on the markets:

1. Continued foreign institutional investor (FII) outflows, which have made markets nervous.

2. Weak global cues, adding to the selling pressure and risk-off sentiment.

Together, these elements created a bearish tone across sectors, especially in financials.

What’s Next for the Markets?

With Nifty slipping below 24,950 and Sensex shedding over 600 points, investors are likely to remain cautious in the near term. The weak earnings from a major player like Axis Bank have shaken confidence, especially in the banking and financial services sector.

Unless sentiment improves and FII flows stabilize, markets may continue to face volatility.

For now, all eyes are on upcoming corporate results and global trends that could provide some relief or add further pressure.

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