Indian Stock Market Snaps Winning Streak Amid Broad Selling, PSU Banks Outperform on SEBI Proposal

The Indian stock market's recent winning streak of four weeks came to an end on Friday, impacted by widespread selling pressure in the last two trading sessions. The Nifty 50 and BSE Sensex indices both registered a modest decline of 0.3% for the week. Profit-taking led to a significant drop of over 450 points in the Nifty in the final sessions.

Despite the overall market downturn, the public sector undertaking (PSU) banking segment emerged as a strong performer, with the PSU Bank index soaring by 5%. This rally was fueled by a discussion paper released by SEBI, which suggested potentially easing the eligibility criteria for commencing banking operations. Consequently, Union Bank of India jumped 5%, with Bank of Baroda and Indian Bank also advancing.

Conversely, many Nifty constituents ended in the red. Pharmaceutical, IT, and select financial stocks faced pressure. Cipla fell 2% after lowering its margin outlook for the fiscal year 2026. IT firm Mphasis shed 5% despite reporting stable quarterly numbers. Bandhan Bank tumbled 8% following disappointing second-quarter results.

On the brighter side, several companies reported strong performances. Bharat Electronics (BEL) rose 4% after beating September-quarter estimates. Shriram Finance gained 2% after an in-line performance. Navin Fluorine surged 15% after raising its fiscal year 2026 revenue guidance, and Strides Pharma jumped 9% on robust margin expansion.

Broader market indices like the Nifty Midcap 100 and Nifty Bank ended marginally higher for the week. Top midcap gainers included BHEL, IOC, Adani Green Energy, Suzlon, IIFL Finance, and Canara Bank. Market breadth indicated a weak sentiment, with more stocks declining than advancing.

Impact This news has a direct impact on the banking sector, particularly PSU banks, due to the SEBI proposal. Individual stocks mentioned, based on their specific results and guidance, will also experience immediate effects. The broader market sentiment has been affected by the end of the winning streak, signaling potential volatility ahead. Rating: 6/10.

Heading: Difficult Terms and Their Meanings SEBI: Securities and Exchange Board of India, the primary regulator of the securities market in India. Nifty 50: A benchmark stock market index representing the performance of the 50 largest and most liquid Indian companies listed on the National Stock Exchange. BSE Sensex: A benchmark stock market index representing the performance of 30 large, well-established, and financially sound companies listed on the Bombay Stock Exchange. Nifty Midcap 100: A stock market index that tracks the performance of the 100 mid-capitalization companies listed on the National Stock Exchange. PSU Bank Index: An index that tracks the stock performance of public sector undertaking (PSU) banks listed on Indian stock exchanges. FY26: Fiscal Year 2025-2026. Q2: The second quarter of a financial year, typically from July to September in India. NSE: National Stock Exchange of India, one of the leading stock exchanges in India. Market Breadth: A measure used in technical analysis to gauge the overall strength of a market trend by looking at the number of advancing stocks versus declining stocks. Advance-Decline Ratio: A technical indicator derived from market breadth, calculated by dividing the number of advancing stocks by the number of declining stocks.