Indian equity benchmarks ended lower on Friday, snapping a two-day winning streak as broad-based selling in financial stocks outweighed gains in information technology and automobile shares. Investor sentiment remained cautious despite positive corporate earnings, with the Nifty 50 closing below the 24,600 mark.

The Sensex declined 455.59 points (0.58%) to close at 78,499.17, while the Nifty 50 fell 65.35 points (0.27%) to 24,570.65. Broader markets remained relatively resilient, with the BSE Mid-Cap index rising 0.18%, while the Small-Cap index ended largely unchanged.

Financial Stocks Drag Markets Lower

The Nifty Financial Services Index declined 1.48%, led by sharp losses in Bajaj Finance, Bajaj Finserv, Cholamandalam Investment & Finance, ICICI Bank, Kotak Mahindra Bank and Axis Bank. Weakness in private banks and financial services stocks was the primary factor behind the market's decline.

IPO Market Remains Active

Investor interest remained strong in the primary market:

Ardee Industries IPO was subscribed over 121 times.

Technocraft Ventures IPO received subscriptions of about 2 times.

LEAP India IPO witnessed relatively muted demand, with subscriptions at 0.24 times as of the latest available data.

Earnings Drive Stock-Specific Action

Several companies reported strong quarterly results, leading to notable stock movements:

Gainers

State Bank of India (SBI) advanced after reporting a 10.2% increase in quarterly profit.

LIC gained on the back of a 22.8% rise in net profit.

Hero MotoCorp, Britannia Industries, and Fortis Healthcare moved higher following healthy earnings growth.

Varroc Engineering, G R Infraprojects, and GK Energy surged after delivering strong revenue and profit performance.

Losers

Saksoft declined after reporting weaker quarterly earnings and margin pressure.

Global Market Highlights

Global sentiment remained broadly positive:

European markets traded higher and were on course for their strongest weekly gain in over a month, supported by robust corporate earnings.

Asian markets advanced amid hopes that progress on the Strait of Hormuz could ease crude oil prices and inflation concerns.

China's trade data remained strong, with exports and imports continuing to grow at a healthy pace, although growth moderated from June levels.

Crude Oil and Global Risks

Crude oil prices moved higher after Iran released a restrictive draft proposal governing transit through the Strait of Hormuz, raising concerns over potential supply disruptions. Brent crude climbed above USD 83 per barrel, while WTI crude traded above USD 78 per barrel.

Outlook

Markets are likely to remain focused on corporate earnings, developments in global energy markets, and geopolitical tensions in the Middle East. Investors will also closely monitor upcoming U.S. employment data for further clues on the global economic outlook and interest-rate trajectory.