Market wrap: NIFTY50 and SENSEX close with nearly 1% losses on Friday; Adani group stocks top losers

Indian equity benchmarks after a day’s halt again slipped into red terrain on Friday, led by sharp losses in Adani Group stocks, along with weakness in Eternal and IndiGo. Markets made a cautious start despite positive global cues. Soon, indices extended their losses and remained under selling pressure throughout the session, as traders remained cautious amid continued selling by foreign institutional investors and mixed corporate earnings.

Persistent foreign fund outflows: Sentiments remained downbeat as Foreign institutional investors (FIIs) net sold equities worth nearly ₹2,549.80 crore on Thursday.

Market participants remained cautious as think tank GTRI stated that the European Union has suspended export benefits to sectors such as textiles under a preferential scheme for some countries, including India, from January 1, a move that is expected to impact the country's shipment to the 27-nation bloc, even as the two sides are finalising a trade agreement.

HSBC Flash India composite output index at 59.5 in January up from 57.5 in the previous month also failed to boost the investor sentiment.

On the global front, European markets were trading mostly in green amid easing geopolitical and trade tensions between the United States and Europe. Asian equity markets ended mostly in green, after the Bank of Japan held rates on hold but signalled that it was likely to continue raising interest rates in 2026.

The NIFTY50 ended at 25048.65, down by 241.25 points or 0.95% after trading in a range of 25025.30 and 25347.95. There were 11 stocks advaned against 38 stocks that declined on the index, while one stock remained unchanged.

The SENSEX ended at 81537.70, down by 769.67 points or 0.94% after trading in a range of 81471.82 and 82516.27. There were 6 stocks that advanced against 24 stocks that declined on the index.

The top gainers on Nifty were Dr Reddy's Lab up by 1.49%, Tech Mahindra up by 0.69%, Hindustan Unilever up by 0.64%, Hindalco up by 0.62% and ONGC up by 0.60%. On the flip side, Adani Enterprises down by 10.76%, Adani Ports and Special Economic Zone down by 7.02%, Eternal down by 5.74%, Interglobe Aviation down by 4.17% and Cipla down by 4.04% were the top losers.

European markets were trading mostly in red; France’s CAC fell 37.39 points or 0.46% to 8,111.50, and the UK’s FTSE 100 decreased 11.35 points or 0.11% to 10,138.70, while Germany’s DAX gained 15.53 points or 0.06% to 24,872.00.

Amid stock-specific developments, shares of Paytm were among the top F&O losers for Friday after media reports indicated that non-extension of the Payment Infrastructure Development Fund could hurt the company’s topline. The company said that it will increase its revenue and target sales efforts to offset the impact of the development.