The BSE Sensex fell 592.67 points (−0.7%) to 84,404.46, while the NSE Nifty50 slipped 176.05 points (−0.68%) to 25,877.75.
Breadth was mixed down the cap curve: the Nifty MidCap 100 edged +0.1%, while the Nifty SmallCap 100 dipped −0.1%—a sign that selling was heavier in large caps than in the broader market.
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Impact on the stock market
Sector-wise performance
Nifty Financial Services: −0.7% led the declines.
IT, Auto, Metal, Pharma, Bank, Oil & Gas: all ended lower.
Nifty Energy: the lone gainer on the board.
| Sector/Index | Performance |
| IT & BPM sector | -0.51% |
| Healthcare sector | -0.70% |
| Oil & Gas sector | -0.12% |
| Real estate sector | 0.04% |
| PSU Bank in India | -0.38% |
Top gainers today
| Company | Share Price (in ₹) | Change % |
| Coal India | 387.85 | 1.53 |
| Larsen | 3,987.50 | 0.74 |
| Bharat Elec | 410.15 | 0.72 |
| Hindalco | 861.35 | 0.60 |
| Maruti Suzuki | 16,206.00 | 0.42 |
Top losers today
| Company | Share Price (in ₹) | Change % |
| Dr Reddys Labs | 1,202.20 | -3.89 |
| Cipla | 1,540.10 | -2.59 |
| HDFC Life | 747.95 | -1.75 |
| Bharti Airtel | 2,066.00 | -1.65 |
| Interglobe Avi | 5,731.00 | -1.41 |
Market aftermath: Impact on stocks
Canara Bank jumps 4% to a 15-year high on strong Q2
Defying the broader weakness, Canara Bank’s stock rallied over 4% to touch a near 15-year high of ₹134.25, continuing its dream run that began earlier this year. From a low of ₹78.60 in March 2025, the stock has soared 71% in seven months, with a 36% gain over the last six months.
The public-sector lender posted a robust 19% year-on-year rise in Q2 FY26 net profit to ₹4,774 crore, up from ₹4,014 crore last year. Asset quality strengthened significantly — gross NPAs fell to 2.35% (from 3.73% YoY), and net NPAs dropped to 0.54% (from 0.99%).
Although net interest income (NII) dipped 2% YoY to ₹9,141.19 crore, profitability improved with a net profit margin of 12.37% (up from 11.56%) and ROA rising to 1.12%. Credit costs fell to 0.68%, indicating better efficiency.
With consistent improvement in metrics, Canara Bank continues to be one of the top-performing PSU banks of the year — and Thursday’s surge reaffirmed investor faith in its turnaround story.
ITC edges lower ahead of results; street expects muted quarter
ITC shares slipped 0.7% to ₹418.85 ahead of its Q2 FY26 earnings, expected later in the day. Analysts project only a 0.6% year-on-year profit increase, citing a one-time impact from GST rate cuts on the consumer goods segment.
While Systemix Research forecasts steady growth in the company’s cigarette volumes, it also warns that leaf tobacco costs could pressure margins.
For reference, ITC had reported a net profit of ₹5,078.3 crore in Q2 FY25 (up 3.1% YoY) on revenues of ₹19,327.8 crore.
In 2025 so far, ITC’s stock is down 13%, despite a recent short-term recovery. From its 52-week low of ₹390.15 (April 2025), it has rebounded 7%, but remains well below its ₹493.45 high (Nov 2024).
Investors now await clarity on how the GST reset and input costs play out in ITC’s margins and future guidance.
Dr Reddy’s drops 6% after regulatory setback in Canada
Dr Reddy’s Laboratories fell nearly 6% to ₹1,180.90, its lowest level in five months, after receiving a non-compliance notice from Canada’s drug regulator for its Semaglutide injection, the generic version of Novo Nordisk’s blockbuster drugs Wegovy and Ozempic.
The notice requests additional clarifications on the company’s filing — a setback that analysts fear could delay the product launch by up to six months, eroding its first-mover advantage.
- JP Morgan expects potential losses of $30 million in FY26 and $100 million in FY27 from Canada.
- Emkay Global also flagged a six-month delay, pushing expected launches to mid-2026.
Adding to the ripple effect, Shaily Engineering Plastics, one of Dr Reddy’s key suppliers, tanked 17% to ₹2,115, as investors priced in a potential revenue impact.
Despite this, Dr Reddy’s Q2 FY26 results showed a 7% YoY rise in profit to ₹1,347.1 crore and revenue growth of nearly 10% to ₹8,828 crore, beating expectations on top line but missing profit forecasts due to competitive pressure in the North American market.
Crude oil dips amid Trump’s nuclear testing remarks
In global commodities, crude oil futures weakened after former US President Donald Trump announced plans to restart nuclear weapons testing, sparking geopolitical unease ahead of his meeting with China’s President Xi Jinping.
- Brent (January) stood at $64.06, down 0.40%,
- WTI (December) at $60.19, down 0.48%, and
- MCX Crude (November) at ₹5,342, down 0.56%.
Trump’s post on Truth Social claimed that the US has “more nuclear weapons than any other country” and directed the Department of War to begin testing “immediately”.
While the comments stirred short-term jitters, analysts suggest the dip in crude could help India’s inflation outlook, provided the broader geopolitical situation remains stable.
Conclusion
Indian markets closed weaker on Thursday as global cues overpowered local fundamentals. The Fed’s final rate cut signal and US–China trade uncertainties triggered profit booking, keeping both Sensex and Nifty under pressure.
Yet, beneath the index decline, stock-specific stories stood out — Canara Bank’s stellar performance highlighted PSU banking resilience, ITC traded cautiously before results, and Dr Reddy’s stumble reminded investors of pharma’s regulatory risks.
With oil prices cooling and global volatility rising, the next few sessions may stay range-bound — but as Canara Bank’s rise shows, well-managed fundamentals can still shine through a cloudy market.
For more stock market insights, check out the StockGro blog.
