Financials Lead Fall as ICICI Bank, PSU Banks Drag While FMCG and Metals Try to Rescue

Mumbai, May 26: Indian benchmark indices ended lower in a volatile expiry-day session on Tuesday, as weakness in financial and realty stocks offset gains in FMCG and metal counters amid rising geopolitical tensions in West Asia and a rebound in crude oil prices.
The Sensex declined 479.26 points, or 0.63%, to close at 76,009.70, while the Nifty 50 slipped 118 points, or 0.49%, to settle at 23,913.70, falling below the key 24,000 mark. Investor sentiment remained cautious after fresh U.S. strikes in Iran dampened optimism surrounding a possible peace agreement and triggered a rebound in global crude prices.

Banking Leads Decline

Financial stocks emerged the biggest drags on the benchmark indices during the session.

Nifty Financial Services melted under heat from oil boil. Source: NSE

Private lenders such as HDFC Bank and ICICI Bank traded under pressure, while PSU banking counters also witnessed selling amid concerns that elevated oil prices could keep inflationary pressures high and reduce expectations of aggressive monetary easing.

HDFC Bank share price declined one per cent at Rs 779 while ICICI Bank share price fell nearly one per cent at Rs 1,279.

IT Neither Here nor There

The IT index sat on the fence, neither declining nor rising with tech major Wipro proving the biggest drag. Wipro share price erased early gains and turned lower on Tuesday after extending rally for a ninth consecutive session earlier in the day, as investors booked profits following recent momentum linked to the company’s buyback announcement.

The stock had initially risen on optimism surrounding the IT major’s ₹15,000 crore share buyback programme, priced at ₹250 per share — versus the stock’s closing price of Rs 204. Investor sentiment had also been supported after the company fixed June 5 as the record date for the buyback.

Tech Mahindra, however, bucked the broader IT trend and ended among the top Nifty gainers.

FMCG, Metals Offer Support

Despite broader weakness, defensive buying in FMCG stocks helped cushion losses.

Nestle India ended among the top gainers as investors shifted toward defensive sectors amid geopolitical uncertainty and volatility in global energy markets. Nestle India share price rose 1% at Rs 1,428.6.

Metal stocks also witnessed buying interest, their index rising over 1%. Adani Enterprises emerged among the top Nifty gainers. Adani Enterprises share price had risen the most last week, triggered by reports that US had dropped key fraud charges against Gautam Adani. Vedanta share price also rose, up 3.7% at Rs 344.9.

The auto index flatlined but Tata Motors share price advanced during the session.

Analysts said rising crude oil prices kept energy-sensitive sectors such as aviation, paints and oil marketing companies under watch, while investors selectively moved toward defensives and infrastructure-linked counters.

Broader Markets Outperform

Broader markets outperformed frontline indices despite the cautious undertone in largecaps.

The Nifty Midcap index rose 0.5%, while the Smallcap index gained 0.35%, supported by stock-specific action in telecom, renewable energy and infrastructure counters.

Among active stocks, Vodafone Idea remained the most traded counter for at least the tenth consecutive session after its recent credit rating upgrade and 5G rollout announcements. Suzlon Energy gained after reporting strong operational growth, while Jaiprakash Power Ventures extended gains following Adani Power’s stake acquisition deal.

Meanwhile, railway-linked counters including Rail Vikas Nigam and Container Corporation of India remained under pressure after weak quarterly earnings.

Source:

• NSE