Equity benchmarks closed marginally lower on Tuesday after a volatile monthly F&O expiry session, with metal and PSU banking stocks staging a late-hour recovery that helped trim losses, while broader consolidation persisted ahead of the US Federal Reserve’s policy decision.
The BSE closed 150.68 points or 0.18 per cent lower at 84,628.16, opening at 84,625.71 against its previous close of 84,778.84. The 50 dipped 29.85 points or 0.11 per cent to 25,936.20, opening at 25,939.95 compared to the previous close of 25,966.05. The indices swung between gains and losses throughout the session, with the Nifty slipping to an intraday low of 25,810 before recovering sharply in the final hour.
Metal stocks led the gainers, with surging 2.82 per cent to ₹181.65 from its previous close of ₹176.66, and climbing 2.82 per cent to ₹1,183.00 from ₹1,150.60. SBI Life gained 1.62 per cent to ₹1,934.00 from ₹1,903.10, while Larsen & Toubro advanced 1.47 per cent to ₹3,981.60 from ₹3,923.80. HDFC Life rose 1.32 per cent to ₹747.00 from ₹737.25.
On the losing side, Bajaj Finserv declined 1.48 per cent to ₹2,138.10 from ₹2,170.20, and Trent fell 1.37 per cent to ₹4,733.00 from ₹4,798.70. Coal India dropped 1.31 per cent to ₹391.50 from ₹396.70, Tech Mahindra slipped 1.13 per cent to ₹1,446.30 from ₹1,462.80, and ONGC shed 1.10 per cent to ₹250.49 from ₹253.27.
“Indian equities witnessed a volatile expiry session but managed to close on a resilient note, as both the Nifty 50 and Bank Nifty staged a sharp recovery in the final half hour of trade,” said Ponmudi R, CEO of Enrich Money. “The Nifty 50 traded within a narrow 25,800–26,000 range for most of the day, reflecting cautious sentiment ahead of key global events such as the US Federal Reserve’s policy outcome.”
Sectoral performance diverged sharply, with Nifty Metal rallying 1.23 per cent and PSU Banks gaining 1.21 per cent, while Realty and IT indices declined over 1 per cent. The metal sector gained momentum following China’s announcement to curb steel overcapacity and potential progress in US-China trade relations.
PSU Banks outperformed after reports emerged that the government is planning to significantly increase the FDI limit in state-run banks to 49 per cent from the current 20 per cent. “We see strength in banking stocks, as they benefit from a favourable credit cycle and strategic capital inflows,” said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.
Market breadth remained negative with 2,246 stocks declining against 1,910 advances out of 4,332 stocks traded on the BSE. However, 160 stocks hit 52-week highs compared to 84 touching 52-week lows. Eleven stocks hit upper circuit while nine touched lower circuit.
“The domestic market remained volatile in negative terrain and ended flat, weighed down by profit booking on monthly expiry and weak global cues,” said Vinod Nair, Head of Research at Geojit Investments. “Notably, buying interest emerged at lower levels, reflecting underlying investor confidence.”
Bank Nifty outperformed, closing at 58,270, up 156 points, comfortably holding above the crucial 58,000 mark. “The breakout zone around 58,000–58,250 acted as a strong support base, and as long as the index sustains above this level, momentum is likely to extend toward 58,800–59,000,” Ponmudi R added.
Broader market indices remained resilient with midcap ending 0.02 per cent lower while smallcap closed with a modest 0.02 per cent gain, indicating selective participation rather than broad-based selling.
Technical analysts remained constructive on the market’s near-term prospects. “The index may witness a decent rally as momentum picks up above 26,000. On the higher end, resistance is seen at 26,300, while support is placed at 25,850,” said Rupak De, Senior Technical Analyst at LKP Securities.
Investors awaited the outcome of the US Federal Reserve’s policy meeting on Wednesday, where a 25 basis points rate cut is widely expected. “We maintain our bullish outlook despite the consolidation and recommend focusing on stock selection based on relative strength,” said Ajit Mishra, SVP Research at Religare Broking.
Looking ahead, markets are expected to remain firm tracking positive global cues and ongoing Q2 earnings season. Key result announcements scheduled for Wednesday include L&T, Coal India, VBL, HPCL, CG Power, and Radico Khaitan.