Banks, Oil & Gas Stocks Drag Markets Lower; FMCG, IT, Healthcare Offer Defensive Support

Mumbai, May 8:Equity benchmarks ended lower on Thursday as sharp selling in banking, PSU and oil-linked counters outweighed gains in defensive sectors such as FMCG, healthcare and consumer durables.

The Sensex fell 516.33 points, or 0.66%, to close at 77,328.19, while the Nifty 50 declined 150.50 points, or 0.62%, to settle at 24,176.15. The Nifty ended below the 24,200 mark after remaining under pressure for most of the session.

Sectorally, the market witnessed a clear risk-off trend, with investors moving away from economically sensitive sectors amid rising geopolitical tensions and higher crude oil prices.

Biggest Losers

Banking stocks emerged as the biggest drag on the benchmarks. The Nifty PSU Bank index plunged 3%, making it the worst-performing sector of the day State Bank of India endedup as the top loser on the Nifty 50. The bank soured sentiment on the bourses after missing fourth quarter profit estimates due to a drop in treasury income eclipsing better core lending income.

Private banking names also witnessed selling pressure, with the Nifty Private Bank index declining around 0.8%. Heavyweights HDFC Bank and Axis Bank weighed significantly on the benchmarks as rising crude oil prices and a weakening rupee fuelled concerns over inflation and interest rate sensitivity.

Oil’s Not Well

Oil & Gas stocks too came under pressure, with the sectoral index shedding around 1%. The spike in global crude oil prices following renewed tensions between the United States and Iran triggered worries around higher input costs, margin pressures and inflationary risks for the broader economy.

Energy stocks also ended lower, with both thesectoralindex declining around 0.8% amid cautious sentiment across cyclical sectors.

Metal stocks remained weak through the session as global risk aversion and concerns around economic uncertainty weighed on commodity-linked counters. Realty shares also slipped around 0.5%, reflecting caution in rate-sensitive pockets of the market.

Defensives Offer Some Support

In contrast, defensive sectors provided some support to the broader market.

The FMCG index ended in the green as investors rotated toward consumption-focused names considered relatively resilient during periods of volatility. Tata Consumer Products and Asian Paints emerged among the top gainers on the Nifty 50.

Healthcare stocks also outperformed, with the Nifty Healthcare index closing higher as investors sought refuge in defensive plays. Apollo Hospitals was among the top gainers on the benchmark index.

Consumer durables stocks remained resilient as well, aided by strong earnings-led buying in Titan Company. The jewellery and wearables major surged over 5% after reporting robust revenue growth for the March quarter despite margin pressures.

Tech Stands Tall

The IT sector was another pocket of strength in an otherwise weak market. The Nifty IT index managed to end higher as investors selectively accumulated technology stocks following improved sentiment around global AI-linked themes and strong earnings from select companies.

Broader markets displayed relative resilience despite the weakness in benchmark indices. The Nifty Midcap index slipped just 0.15%, while the Smallcap index edged 0.22% higher, indicating continued stock-specific buying interest outside the frontline names.

Analysts said the market’s sectoral movement reflected a defensive rotation as investors responded to rising geopolitical uncertainty, elevated crude oil prices and weakness in the rupee.

While financials and oil-sensitive sectors bore the brunt of the selling, defensive consumption and healthcare names attracted buying interest as traders looked for relatively stable earnings visibility amid the uncertain global backdrop.

Source:

• https://www.nseindia.com/market-data/live-market-indices