Mid‑cap and small‑cap indices slide while banks attract buyers

Friday’s trading session for Indian equities showed a mixed picture. While the Sensex and Nifty posted gains of 1.04% and 0.85% respectively, the mid‑cap and small‑cap segments faced pressure. The Nifty Mid‑Cap 100 fell 452 points, down 0.72% to 62,236, and the Nifty Small‑Cap 100 slipped 178 points, a 0.92% decline to 19,156.

The resilience of the larger indices was largely supported by strong buying in the banking sector. Kotak Mahindra Bank, Axis Bank, ICICI Bank and HDFC Bank saw substantial inflows, helping to offset the weakness in the smaller‑cap universe. The IT sector also contributed, with Tech Mahindra’s earnings beat lifting the Nifty IT index about one percent, making it the top sectoral performer.

Global risk factors remain a concern. Tensions stemming from the US‑Iran conflict have kept Asian markets such as Tokyo, Shanghai and Hong Kong in the red, creating a challenging backdrop for Indian investors. Meanwhile, the rupee’s depreciation, exacerbated by high U.S. Treasury yields, continues to pressure sentiment.

On the flow side, foreign institutional investors sold equities worth ₹4,205.56 crore on Thursday, whereas domestic institutional investors stepped up, purchasing ₹2,986.41 crore. This divergence in capital movements suggests a market that is still navigating a delicate balance between optimism in select sectors and broader macro‑economic headwinds.