Equity benchmarks dipped after a flat opening on Wednesday as losses in HDFC Bank and ONGC offset gains in metal and energy shares, while investors remained cautious over the fragile US-Iran truce and developments around the Strait of Hormuz.
The BSE Sensex declined 141.90 points or 0.19 per cent to close at 75,867.80, while the NSE Nifty 50 slipped 6.55 points or 0.03 per cent to settle at 23,907.15.
Broader markets outperformed the benchmarks, with midcap and smallcap indices posting marginal gains. Vikram Kasat, Head of Advisory, PL Capital, said that midcap and smallcap stocks showed resistance amid selective buying.
Among sectoral indices, media emerged as the top gainer, followed by metal and auto stocks. In contrast, banking, financials, IT, and oil & gas slipped.
Top gainers & losers of Nifty 50
Within the Nifty 50 pack, Tata Motors Passenger Vehicles (TMPV), Hindalco, Power Grid, Eternal and NTPC were among the top gainers. ONGC and HDFC Bank were the biggest drags, while Wipro, Dr Reddy’s Laboratories, ICICI Bank and Infosys also ended lower.
HDFC Bank declined 2.6 per cent after reports said the lender paid ₹45 crore to a state road development corporation to draw large deposits. A spokesperson for HDFC Bank rejected “any assumption of wrongdoing or culpability” in response to the reports surrounding the payment.
ONGC reacted to its Q4FY26 earnings. In addition, Coal India remained volatile after the government launched an OFS to sell up to a 2 per cent stake.
Vinod Nair, Head of Research at Geojit Investments, said the main indices remain range-bound, while midcaps have entered a stronger phase, supported by recovering domestic inflows that are offsetting foreign institutional investor selling. He added that improving prospects for peace between the US and Iran are driving expectations of an earnings and valuation reset, even though Q1FY27 could remain soft.
Nair further said large-cap stocks are becoming attractive as they trade below their long-term premium, and a revival in the segment could follow if foreign investor selling eases amid improving geopolitical conditions in West Asia.
Market breadth remained positive. A total of 3,422 stocks traded on the NSE, of which 1,772 advanced, 1,535 declined, and 115 remained unchanged. Around 125 stocks hit their 52-week highs, while 42 touched 52-week lows. In the broader market, 129 stocks hit the upper circuit while 92 touched the lower circuit.
Midcap & smallcap movers
Among midcaps, ATGL, Exide Industries, Swiggy, Tube Investments and Suzlon Energy rallied 6-14 per cent, while MCX, Radico Khaitan, BSE and Bharat Dynamics declined 3-5 per cent.
In the small-cap segment, Pine Labs, Netweb Technologies, IFCI and Ola Electric Mobility gained 5-6 per cent, whereas GE Shipping, Firstsource Solutions and Brainbees Solutions (FirstCry) fell 3-8 per cent.
“Going ahead, markets are likely to remain driven by developments around the global environment, crude oil prices and monsoon progress,” Abhinav Tiwari, Research Analyst at Bonanza, said.
Ponmudi R, CEO of Enrich Money, emphasised that investors are likely to stay focused on developments around US-Iran negotiations, the durability of the ceasefire and progress towards reopening the Strait of Hormuz, given their implications for global markets, energy prices and overall risk appetite.
Among Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 ended higher, while China’s SSE Composite and Hong Kong’s Hang Seng settled lower. European markets traded in positive territory.
US markets mostly ended higher on Tuesday
FIIs sold equities worth ₹2,407.87 crore on Tuesday. Sensex ended 479.26 points or 0.63 per cent lower at 76,009.70 in the previous trading session, while the Nifty declined 118 points or 0.49 per cent to 23,913.70.