Banking stocks drag benchmarks lower while IT and pharma shares limit market losses amid volatile global cues

Indian stock markets witnessed a volatile trading session on Friday as renewed geopolitical tensions between the United States and Iran triggered risk aversion across global financial markets. Although benchmark indices recovered nearly 300 points from their intraday lows, the broader sentiment remained cautious as investors reacted to rising crude oil prices and weak banking stocks.

The benchmark BSE Sensex was trading around 77,290, down over 550 points, while the NSE Nifty50 hovered near the 24,200 mark. Analysts said the market recovery in the latter half of the session was supported by gains in select IT and pharmaceutical counters, which helped offset losses in banking and auto shares.

Global Tensions and Oil Prices Weigh on Investor Sentiment

Investor confidence weakened after escalating tensions in West Asia pushed crude oil prices sharply higher. Brent crude rose above the $100-per-barrel mark, intensifying concerns over inflation and input costs for emerging economies such as India.

Higher crude oil prices are generally considered negative for India because the country relies heavily on energy imports. Rising fuel costs can increase transportation expenses, pressure corporate margins, and widen the country’s fiscal and trade deficits.

Market participants also turned cautious ahead of further developments in the US-Iran situation, fearing that prolonged geopolitical uncertainty could lead to volatility across global equity, commodity, and currency markets.

Banking Stocks Lead Market Decline

Financial stocks emerged as the biggest drag on benchmark indices during the session. The Nifty PSU Bank index declined nearly 2 per cent as investors booked profits in major public sector lenders following recent gains.

Shares of State Bank of India (SBI) fell more than 5 per cent after the bank reported fourth-quarter earnings that missed market expectations despite posting profit growth. The weak reaction to SBI’s results weighed heavily on sentiment across the broader banking sector.

Private banks and financial services companies also traded lower, contributing significantly to the decline in benchmark indices.

IT and Pharma Stocks Offer Defensive Support

While banking stocks remained under pressure, information technology and pharmaceutical shares provided support to the markets. Investors shifted toward defensive sectors amid rising uncertainty in global markets and concerns over inflation.

The Nifty IT index traded higher during the session as investors anticipated stable demand for export-oriented technology companies. Pharmaceutical stocks also witnessed buying interest as investors looked for relatively safer sectors during periods of market volatility.

Analysts said defensive sectors could continue to attract investor attention if geopolitical risks and oil price pressures remain elevated in the near term.

Titan Surges After Strong Quarterly Earnings

Among individual stocks, Titan Company emerged as one of the top gainers after reporting strong fourth-quarter earnings.

Shares of the Tata Group company jumped over 6 per cent to hit a fresh 52-week high after the company posted a 35 per cent year-on-year increase in quarterly net profit and strong revenue growth. Robust demand across jewellery and fashion accessories segments supported investor optimism.

The rally in Titan helped provide some stability to broader consumer-focused stocks during the session.

Midcap and Smallcap Stocks Show Mixed Trend

Broader markets traded on a mixed note throughout the day. The Nifty MidCap index remained slightly weak, while the Nifty SmallCap index managed modest gains.

Market experts noted that despite weakness in benchmark indices, selective buying continued in quality midcap and smallcap counters with strong earnings visibility and sector-specific growth potential.

However, analysts also cautioned that broader market volatility may remain elevated due to global macroeconomic uncertainty and rising commodity prices.

Investors Watch Global Developments and Central Bank Signals

Going forward, investors are expected to closely monitor crude oil prices, geopolitical developments, foreign institutional investor activity, and upcoming global economic data.

Market participants are also watching central bank commentary worldwide, as rising oil prices and inflationary pressures could influence future interest rate decisions.

Analysts believe Indian markets may remain range-bound in the near term, with stock-specific action driven largely by quarterly earnings, sectoral performance, and global risk sentiment.