Weakening rupee, higher crude oil prices, and elevated global bond yields weigh on investor sentiment.
Indian equity markets came under pressure during Friday’s trading session, with the benchmark indices moving lower as investors remained cautious amid a combination of domestic and global factors. At around 12:25 pm on September 11, the Sensex was down 427.78 points, or 0.58%, at 74,477.91, while the Nifty 50 declined 140.10 points, or 0.60%, to 23,338.50. The Nifty also slipped below the 23,350 mark during the session.
The market sentiment was affected by the weakening Indian rupee, higher crude oil prices and elevated global bond yields. Together, these factors added pressure to equities and encouraged a more cautious approach among investors.
PSU Bank stocks face selling pressure.
Public sector bank stocks were among the notable decliners during the session after gaining marginally in the previous trading day. The Nifty PSU Bank index fell 0.87% to 8,329.05 by midday. The index had recorded a marginal gain of 0.01% in the previous session.
Among individual stocks, Bank of India declined 1.48%, while State Bank of India fell 1.33%. Indian Bank was down 1.24%, followed by Canara Bank, which slipped 0.96%. Other public sector lenders also traded lower. Bank of Baroda declined 0.53%, Union Bank of India fell 0.49%, Central Bank of India lost 0.39%, while Punjab & Sind Bank was down 0.13%. The broad-based decline suggested selling was not limited to a handful of banking stocks.
The broader market was also weak.
The weakness extended beyond large-cap stocks. The BSE 150 MidCap Index declined 0.52%, while the BSE 250 SmallCap Index fell 0.59%. Market breadth remained negative, with 2,651 stocks declining on the BSE compared with 1,474 advancing stocks. Another 256 stocks were unchanged. The India VIX, which tracks expected near-term market volatility, also rose 4.23% to 12.30, suggesting a modest increase in caution among market participants.
The derivatives market also reflected the cautious mood. September 29 Nifty futures were trading at a premium to the spot index, while the options chain showed significant open interest at the 24,000 strike on both the call and put sides. For investors, the immediate market focus remains on external factors such as crude prices, currency movements and global bond yields, all of which can influence domestic equity valuations.
Amid the broader market decline, Diamond Power Infrastructure emerged as a notable exception, with its shares rising 2.27%. The company said it had completed its exit from the insolvency resolution framework after prepaying the entire ₹501 crore cash consideration due to its former lenders under the approved resolution plan. It also discharged redeemable bonds worth ₹1,900 crore. The cash payment was originally scheduled to be completed over five years, with the final instalment due in September 2027. The company said it settled the cash obligation in September 2026, a year ahead of schedule.
Overall, Friday’s trading session reflected a cautious tone across Indian equities, with PSU bank stocks and broader market segments facing selling pressure as investors assessed a challenging global backdrop.
