Sectoral Snapshot Today, August 24, 2026: Financials Drag, Metals and IT Gain; 11 of 16 Sectoral Indices End Lower

Mumbai, August 24: Indian equities ended lower on Monday as financial stocks came under pressure, with caution ahead of fresh US sanctions on Iran and elevated crude prices weighing on sentiment. The financials index fell around 0.4%, while 11 of the 16 major sectoral indices ended in the red.  

PSU banks lead sectoral declines 

PSU bank stocks were among the biggest laggards, with the index falling around 1%. Bank of Baroda fell 2.2% while State Bank of India declined 0.9%. Canara Bank declined 2%. 

Private banks, media and consumer durables also declined between 0.3% and 0.5%, adding to pressure on the headline indices. 

Nifty Financial Services index declined 0.4%. The weakness in financial stocks was reflected in the Nifty, with SBI Life Insurance, Bajaj Finance and Bajaj Finserv among the biggest losers. The broader financial sector remains sensitive to global risk appetite as investors assess the impact of elevated yields, geopolitical uncertainty and crude prices. However, gold financiers Muthoot Finance and Manappuram Finance gained 6.2% and 2.1%, respectively, as a surge in gold prices to their highest level in more than three months lifted sentiment. 

Metals outperform 

Metal stocks bucked the broader market trend, with the Nifty Metal index among the strongest sectoral performers, rising 1.6%. Hindalco (up 2.4%), JSW Steel (2.6%) and Tata Steel (1.8%) were among the notable gainers on the Nifty. 

The strength in metals came despite a cautious global backdrop, with investors continuing to track commodity prices and demand prospects.  

IT gains 

IT stocks also ended higher, with the Nifty IT index gaining around 0.2%. HCL Technologies was among the notable Nifty gainers, rising 1.5%. Infosys rose 0.8% while TCS fell by the same amount. Wipro edged up 0.3%. 

Energy, realty provide support 

Energy and realty stocks were among the other sectors to finish higher, with softer crude prices providing some relief to oil-importing economies such as India. 

Brent crude fell more than 1% to around $93 a barrel as investors booked profits following a sharp rally last week. However, the commodity remains elevated, with markets awaiting details of new US sanctions against Iran and assessing the risk of further disruption to supplies from the Middle East.  

Healthcare, FMCG and consumer stocks under pressure 

Several defensive and consumption-oriented sectors ended lower. Healthcare, pharma, FMCG and consumer-related stocks faced selling pressure, while the broader weakness reflected investors’ cautious stance ahead of key global events. Among consumer durables, Dixon Technologies shares fell 1.9% after brokerages flagged potential challenges for the electronics manufacturer in qualifying for incentives under the government’s new ₹62,500-crore Mobile Phone Manufacturing Scheme. 

The broader market was mixed, with the Nifty Midcap index gaining 0.13%, while the Nifty Smallcap index declined 0.26%. 

Outlook 

For Indian equities, financials remain a key drag while metals and IT are providing support. The immediate sectoral outlook is likely to remain closely linked to crude prices and developments around Iran sanctions. Any renewed spike in oil could put further pressure on rate-sensitive and consumption sectors, while a sustained easing in crude would provide relief to oil-importing sectors. 

Investors will also track Nvidia’s results and signals from the Federal Reserve’s Jackson Hole symposium, with both events capable of influencing global risk appetite in the coming sessions. 

Source

• NSE