Dalal Street ends lower on HDFC Bank drag; midcaps continue to outperform
The BSE Sensex closed 238.41 points, or 0.31%, lower at 77,470.11, while the NSE Nifty50 fell 50.80 points, or 0.21%, to settle at 24,187.70.
Benchmark stock market indices ended lower on Tuesday as continued selling in HDFC Bank and lingering geopolitical concerns weighed on investor sentiment, although gains in midcap and smallcap stocks highlighted improving appetite for broader market names.
The BSE Sensex closed 238.41 points, or 0.31%, lower at 77,470.11, while the NSE Nifty50 fell 50.80 points, or 0.21%, to settle at 24,187.70.
The benchmarks traded in a narrow range through the session after an early rebound fizzled out. The Nifty touched an intraday high of 24,262.20 before slipping to a low of 24,135.65, while the Sensex hit a high of 77,753.18 and a low of 77,337.33.
HDFC BANK DRAGS BENCHMARKS
The biggest drag on the indices remained HDFC Bank, which fell another 2.08% after tumbling 5.1% in the previous session. The private lender has come under pressure after reporting weaker-than-expected net interest margins for the June quarter.
Reliance Industries (-1.48%), SBI (-1.48%), TCS (-1.32%), Infosys (-1.24%) and Trent (-1.10%) also weighed on the benchmarks.
Among the top Sensex losers were HDFC Bank, Reliance Industries, SBI, TCS, Infosys, Trent, Power Grid (-0.74%) and ITC (-0.50%).
However, losses were partially offset by gains in Bajaj Finserv, which rose 2.07%, followed by IndiGo (+1.57%), UltraTech Cement (+1.42%), HCLTech (+1.32%), Mahindra & Mahindra (+1.18%), Kotak Mahindra Bank (+1.02%) and Titan (+0.97%).
MIDCAPS, SMALLCAPS OUTSHINE
Despite weakness in the benchmark indices, the broader market continued to outperform.
The Nifty Smallcap 100 climbed 0.53%, Nifty Midcap 100 gained 0.30% and Nifty Midcap 50 rose 0.28%. The Nifty 500 also ended 0.06% higher, while the Nifty 200 was largely flat.
India VIX, often referred to as the market's fear gauge, declined nearly 3% to 12.60, indicating easing volatility expectations.
Vinod Nair, Head of Research at Geojit Investments Limited, said the broader market continues to find support from expectations of healthy corporate earnings despite geopolitical uncertainties.
"Despite geopolitical challenges, midcaps are performing well in anticipation of strong corporate earnings, supported by demand-led business updates. While this segment's elevated valuations compared to large caps warrant caution, underlying business conditions are expected to remain healthy at least through H1FY27," he said.
"However, sustaining this momentum will require the ongoing spike in input costs to normalize as demand growth may tend to become flattish in H2FY27. At present, the broader market is trading in a mixed range, reflecting large caps' underperformance driven by moderating inflows amid rising geopolitical risks and higher crude oil prices," Nair added.
AUTO, REALTY SHINE; IT, PSU BANKS LAG
Sectorally, Nifty Realty emerged as the top performer, gaining 1.07%, followed by Nifty Auto (+0.93%), Nifty MidSmall Healthcare (+0.67%), Nifty Metal (+0.63%) and Nifty Chemicals (+1.49%).
Healthcare stocks also remained firm, with the Nifty Healthcare index rising 0.35% and Nifty Pharma gaining 0.34%.
On the losing side, Nifty PSU Bank fell 0.88%, Nifty IT declined 0.61%, Nifty Oil & Gas lost 0.50%, Nifty Consumer Durables slipped 0.38% and Nifty FMCG ended 0.31% lower.
Crude oil prices remained elevated amid continued uncertainty in the Middle East. Brent crude rose 0.58% to $89.74 per barrel, while WTI crude gained 0.58% to $82.96.
The focus will now shift to the ongoing June-quarter earnings season, with investors watching whether strong corporate results can continue to support broader market stocks even as heavyweight banking names remain under pressure.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark stock market indices ended lower on Tuesday as continued selling in HDFC Bank and lingering geopolitical concerns weighed on investor sentiment, although gains in midcap and smallcap stocks highlighted improving appetite for broader market names.
The BSE Sensex closed 238.41 points, or 0.31%, lower at 77,470.11, while the NSE Nifty50 fell 50.80 points, or 0.21%, to settle at 24,187.70.
The benchmarks traded in a narrow range through the session after an early rebound fizzled out. The Nifty touched an intraday high of 24,262.20 before slipping to a low of 24,135.65, while the Sensex hit a high of 77,753.18 and a low of 77,337.33.
HDFC BANK DRAGS BENCHMARKS
The biggest drag on the indices remained HDFC Bank, which fell another 2.08% after tumbling 5.1% in the previous session. The private lender has come under pressure after reporting weaker-than-expected net interest margins for the June quarter.
Reliance Industries (-1.48%), SBI (-1.48%), TCS (-1.32%), Infosys (-1.24%) and Trent (-1.10%) also weighed on the benchmarks.
Among the top Sensex losers were HDFC Bank, Reliance Industries, SBI, TCS, Infosys, Trent, Power Grid (-0.74%) and ITC (-0.50%).
However, losses were partially offset by gains in Bajaj Finserv, which rose 2.07%, followed by IndiGo (+1.57%), UltraTech Cement (+1.42%), HCLTech (+1.32%), Mahindra & Mahindra (+1.18%), Kotak Mahindra Bank (+1.02%) and Titan (+0.97%).
MIDCAPS, SMALLCAPS OUTSHINE
Despite weakness in the benchmark indices, the broader market continued to outperform.
The Nifty Smallcap 100 climbed 0.53%, Nifty Midcap 100 gained 0.30% and Nifty Midcap 50 rose 0.28%. The Nifty 500 also ended 0.06% higher, while the Nifty 200 was largely flat.
India VIX, often referred to as the market's fear gauge, declined nearly 3% to 12.60, indicating easing volatility expectations.
Vinod Nair, Head of Research at Geojit Investments Limited, said the broader market continues to find support from expectations of healthy corporate earnings despite geopolitical uncertainties.
"Despite geopolitical challenges, midcaps are performing well in anticipation of strong corporate earnings, supported by demand-led business updates. While this segment's elevated valuations compared to large caps warrant caution, underlying business conditions are expected to remain healthy at least through H1FY27," he said.
"However, sustaining this momentum will require the ongoing spike in input costs to normalize as demand growth may tend to become flattish in H2FY27. At present, the broader market is trading in a mixed range, reflecting large caps' underperformance driven by moderating inflows amid rising geopolitical risks and higher crude oil prices," Nair added.
AUTO, REALTY SHINE; IT, PSU BANKS LAG
Sectorally, Nifty Realty emerged as the top performer, gaining 1.07%, followed by Nifty Auto (+0.93%), Nifty MidSmall Healthcare (+0.67%), Nifty Metal (+0.63%) and Nifty Chemicals (+1.49%).
Healthcare stocks also remained firm, with the Nifty Healthcare index rising 0.35% and Nifty Pharma gaining 0.34%.
On the losing side, Nifty PSU Bank fell 0.88%, Nifty IT declined 0.61%, Nifty Oil & Gas lost 0.50%, Nifty Consumer Durables slipped 0.38% and Nifty FMCG ended 0.31% lower.
Crude oil prices remained elevated amid continued uncertainty in the Middle East. Brent crude rose 0.58% to $89.74 per barrel, while WTI crude gained 0.58% to $82.96.
The focus will now shift to the ongoing June-quarter earnings season, with investors watching whether strong corporate results can continue to support broader market stocks even as heavyweight banking names remain under pressure.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark stock market indices ended lower on Tuesday as continued selling in HDFC Bank and lingering geopolitical concerns weighed on investor sentiment, although gains in midcap and smallcap stocks highlighted improving appetite for broader market names.
The BSE Sensex closed 238.41 points, or 0.31%, lower at 77,470.11, while the NSE Nifty50 fell 50.80 points, or 0.21%, to settle at 24,187.70.
The benchmarks traded in a narrow range through the session after an early rebound fizzled out. The Nifty touched an intraday high of 24,262.20 before slipping to a low of 24,135.65, while the Sensex hit a high of 77,753.18 and a low of 77,337.33.
HDFC BANK DRAGS BENCHMARKS
The biggest drag on the indices remained HDFC Bank, which fell another 2.08% after tumbling 5.1% in the previous session. The private lender has come under pressure after reporting weaker-than-expected net interest margins for the June quarter.
Reliance Industries (-1.48%), SBI (-1.48%), TCS (-1.32%), Infosys (-1.24%) and Trent (-1.10%) also weighed on the benchmarks.
Among the top Sensex losers were HDFC Bank, Reliance Industries, SBI, TCS, Infosys, Trent, Power Grid (-0.74%) and ITC (-0.50%).
However, losses were partially offset by gains in Bajaj Finserv, which rose 2.07%, followed by IndiGo (+1.57%), UltraTech Cement (+1.42%), HCLTech (+1.32%), Mahindra & Mahindra (+1.18%), Kotak Mahindra Bank (+1.02%) and Titan (+0.97%).
MIDCAPS, SMALLCAPS OUTSHINE
Despite weakness in the benchmark indices, the broader market continued to outperform.
The Nifty Smallcap 100 climbed 0.53%, Nifty Midcap 100 gained 0.30% and Nifty Midcap 50 rose 0.28%. The Nifty 500 also ended 0.06% higher, while the Nifty 200 was largely flat.
India VIX, often referred to as the market's fear gauge, declined nearly 3% to 12.60, indicating easing volatility expectations.
Vinod Nair, Head of Research at Geojit Investments Limited, said the broader market continues to find support from expectations of healthy corporate earnings despite geopolitical uncertainties.
"Despite geopolitical challenges, midcaps are performing well in anticipation of strong corporate earnings, supported by demand-led business updates. While this segment's elevated valuations compared to large caps warrant caution, underlying business conditions are expected to remain healthy at least through H1FY27," he said.
"However, sustaining this momentum will require the ongoing spike in input costs to normalize as demand growth may tend to become flattish in H2FY27. At present, the broader market is trading in a mixed range, reflecting large caps' underperformance driven by moderating inflows amid rising geopolitical risks and higher crude oil prices," Nair added.
AUTO, REALTY SHINE; IT, PSU BANKS LAG
Sectorally, Nifty Realty emerged as the top performer, gaining 1.07%, followed by Nifty Auto (+0.93%), Nifty MidSmall Healthcare (+0.67%), Nifty Metal (+0.63%) and Nifty Chemicals (+1.49%).
Healthcare stocks also remained firm, with the Nifty Healthcare index rising 0.35% and Nifty Pharma gaining 0.34%.
On the losing side, Nifty PSU Bank fell 0.88%, Nifty IT declined 0.61%, Nifty Oil & Gas lost 0.50%, Nifty Consumer Durables slipped 0.38% and Nifty FMCG ended 0.31% lower.
Crude oil prices remained elevated amid continued uncertainty in the Middle East. Brent crude rose 0.58% to $89.74 per barrel, while WTI crude gained 0.58% to $82.96.
The focus will now shift to the ongoing June-quarter earnings season, with investors watching whether strong corporate results can continue to support broader market stocks even as heavyweight banking names remain under pressure.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
