Sectoral Performance Today, August 12, 2026: PSU Banks, Metals Gain; IT, FMCG Drag Markets

Mumbai, August 12: Indian equities ended lower on Wednesday, with sectoral performance remaining sharply divided as investors assessed elevated crude oil prices, geopolitical uncertainty and upcoming inflation data. Seven of the 16 major sectors recorded losses, while gains in PSU banks and metals provided some cushion to the benchmark indices.  

PSU Banks Outperform 

PSU banks emerged as the strongest-performing segment, with the Nifty PSU Bank index gaining 2.05%. State Bank of India rose 1.5% while Punjab National Bank rose 4.3%. Union Bank of India rose 2.5%. The Nifty Bank index also advanced 0.77%. The sector remained relatively resilient despite broader market weakness, as investors favoured financial stocks. 

Metals Gain On Aluminium Strength 

Metal stocks also bucked the broader weakness, with the Nifty Metal index rising 0.54%. Hindalco was among the top Nifty gainers, while National Aluminium also advanced as global aluminium prices climbed on concerns over supply disruptions and lower inventories. Aluminium prices rose to a seven-week high in London, providing a positive backdrop for Indian metal producers.  

IT Stocks Under Pressure 

The Nifty IT index fell 1.54%, making technology one of the biggest sectoral drags on the benchmarks. TCS led the decline among large-cap IT stocks, with the counter coming under significant selling pressure, falling 4%. Weakness in technology stocks also reflected broader caution in global markets, where investors remain focused on inflation and interest-rate expectations. 

FMCG, Healthcare Face Selling 

FMCG stocks also remained under pressure, with the Nifty FMCG index declining 0.73%. Godrej Consumer Products was a major drag after plunging 11.2% following the unexpected resignation of CEO Sudhir Sitapati.  

Healthcare stocks also faced selling pressure. Hospital counters, including Max Healthcare (down 3%), Apollo Hospitals (1.7%) and Fortis Healthcare (3.7%), declined after recommendations by a parliamentary standing committee raised concerns over the sector’s revenue and profitability outlook. 

Auto Stocks Decline 

The auto segment was another weak pocket, with M&M among the major Nifty losers. Investors remained cautious about the impact of elevated crude prices on fuel costs and consumer demand, particularly if oil prices remain high for an extended period. 

Oil & Gas Stocks In Focus 

The oil and gas sector presented a mixed picture with the index up 0.13% as crude prices remained elevated. Brent crude rose to around $89 a barrel, with renewed concerns over supply disruptions following attacks on vessels in the Strait of Hormuz and Bab el-Mandeb. Vessel traffic through Hormuz has fallen sharply from pre-war levels, keeping global energy markets under pressure. 

Refiner Reliance Industries rose 0.4% while fuel retailer Hindustan Petroleum Corporation declined 0.2%. 

For India, prolonged high crude prices remain a major market risk because they can widen the import bill, pressure the rupee and add to inflation and corporate input costs.  

Broader Market Holds Up Better 

The broader market showed greater resilience compared with the frontline indices. The Nifty Midcap index gained 0.3%, while the smallcap index ended marginally lower. The India VIX also declined 1.43%, suggesting that despite sector-specific selling, overall market volatility remained contained. 

Going ahead, crude oil, U.S. inflation data, the rupee and developments around the Strait of Hormuz are likely to remain the key drivers for sectoral performance. A sustained oil rally could continue to favour upstream energy and commodity producers while putting pressure on fuel-sensitive sectors such as aviation, paints, chemicals and consumer-facing businesses. 

Source

• NSE