Stock market logs second straight weekly loss; financials, insurers lift market off lows

The stock market fell for a second consecutive week, marking their steepest weekly decline in over a month, as risk sentiment weakened amid mixed corporate earnings and cautious global cues.

The benchmark Sensex and Nifty shed about 1% each over the week, while the Nifty Midcap and Nifty Bank indices ended largely unchanged.

Out of the 50 Nifty stocks, 38 closed with weekly losses. Metal and industrial names such as Hindalco Industries, Grasim Industries, and Power Grid Corp led the laggards, while Shriram Finance, Mahindra & Mahindra, Asian Paints, and HDFC Life Insurance emerged as the top gainers.

Among broader markets, Hitachi Energy India, L&T Finance Holdings, Indus Towers, Vodafone Idea, and BSE Ltd topped the midcap gainers, while Amber Enterprises, Blue Star, NCC, and Delhivery were among the notable losers.

On Friday, the market staged a sharp intraday recovery, erasing early losses, with the Sensex closing down 95 points at 83,216 and the Nifty 50 slipping 17 points to 25,491. The Nifty Bank index climbed 323 points to 57,877, while the Nifty Midcap index rose 375 points to 59,843, extending its recent outperformance.

Financial and insurance stocks led the rebound. Shriram Finance surged after reports linked it to a potential stake sale involving Japan’s MUFG, while Bajaj Finance gained nearly 3% ahead of its quarterly results due Monday. Mahindra & Mahindra advanced 2% after brokerages turned bullish following its second-quarter earnings. Insurers SBI Life and LIC rose between 2–3% on strong quarterly numbers.

However, weakness persisted in select industrials and capital goods. Amber Enterprises tumbled 8% after disappointing results, while ABB India fell 4% as order inflows missed estimates. Divi’s Laboratories slipped 3% despite in-line earnings, and Mankind Pharma lost 2% on subdued Q2 performance.

Among financials, L&T Finance Holdings jumped 10% after outlining plans to accelerate asset growth over the next 12–18 months. BSE Ltd rallied 9%, buoyed by comments from the finance minister and SEBI chief on strengthening India’s derivatives market framework.

Power Finance Corp ended 2% lower after reporting a miss on Q2 results and disclosing one fraudulent account. Overall market breadth was neutral, with the NSE advance-decline ratio at 1:1.