The Indian stock market benchmarks, the Sensex and the Nifty 50, ended in the red on Tuesday, 28 April, due to profit booking in banking heavyweights, including ICICI Bank, HDFC Bank, Axis Bank, and SBI, amid mixed global cues.
The closed 417 points, or 0.54%, lower at 76,886.91, while the ended at 23,995.70, falling 97 points, or 0.40%. However, the mid and small-cap segments bucked the trend, ending higher. The Nifty Midcap 100 and Smallcap 100 indices rose by 0.28% and 0.42%, respectively.
The Sensex and the Nifty 50 slipped sharply due to heavy selling in banking stocks after the RBI confirmed its expected credit loss framework and final asset classification norms, raising concerns about higher provisioning.
Nifty PSU Bank index dropped by 2.15%, while the Private Bank index fell 1.23%. Nifty Bank ended with a loss of 1.54%.
Some 30 stocks ended in the red in the Nifty 50 index, among which Axis Bank, Maruti Suzuki India, HCL Technologies, Shriram Finance, and InterGlobe Aviation (IndiGo) ended as the top laggards.
On the other hand, ONGC, Adani Enterprises, Coal India, Reliance Industries, and Nestle India ended as the top gainers in the index.
Stalled talks, elevated crude oil prices, and the rupee’s weakness kept market sentiment fragile.
jumped 3% to trade above the $111 a barrel, exerting pressure on the Indian currency as well as the stock market. As per PTI, the rupee fell 41 paise to close at 94.56 against the US dollar.
Caution ahead of the US Federal Reserve’s policy decision also weighed on sentiment. Markets expect the Fed to keep interest rates unchanged. However, a hawkish tone could be a negative for sentiment.
“Domestic equities are yielding to regulatory tightening and geopolitical pressures, struggling to sustain the recent gains from their lows. Banking stocks led the decline after the RBI confirmed its expected credit loss framework and final asset classification norms, raising concerns over higher provisioning. Investor caution ahead of the US Fed rate decision added to the selling pressure,” Vinod Nair, Head of Research, Geojit Investments, noted.
“A hawkish BoJ stance, weak Asian markets, and ongoing West Asian tensions kept Brent prices elevated, heightening imported inflation risks for India. Persistent FII outflows and rupee weakness further weighed on sentiment, though DII buying provided some support,” said Nair.
“The biggest overhang was crude oil moving toward the $110 zone, which raised fresh concerns about currency pressure, and margin stress for transport-heavy and fuel-sensitive businesses,” said Abhinav Tiwari, Research Analyst at Bonanza.
“The RBI’s final ECL framework also stayed on focus, as the new rules are expected to raise provisioning discipline and could reduce overall banking profits over time, even though the implementation begins from 1 April 2027 with a glide path. That makes the news structurally positive for long-term credit quality but near-term sensitive for bank valuations,” Tiwari said.
On the technical front, the Nifty 50 faced resistance near its 50-DMA around the 24,200 mark and formed a small-bodied bearish candle.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse, highlighted that the index managed to hold above the 24,000 level on a closing basis, which continues to act as a key psychological support.
Going ahead, Jain expects volatility to continue. He said as long as the index sustains above 23,800, a pullback towards the 24,200 level can be expected. However, a decisive break below 23,800 could lead to further downside, with the index potentially drifting towards 23,500.
Some 152 stocks, including Tata Steel, Tata Power, PFC, ONGC, Nestle India, JSW Steel, Hindalco, and Adani Power, hit their 52-week highs in intraday trade on the BSE. On the flip side, Infosys, HCL Technologies, and AB Cotspin India were among the 30 stocks that hit their 52-week lows on the BSE.
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