Metal, Auto Shares Gain While Banking Stocks Weigh on Benchmarks

AMN BIZ DESK

Indian equity benchmarks ended marginally lower on Wednesday, extending losses for a second straight session as investors remained cautious amid persistent geopolitical tensions involving the United States and Iran, continued foreign fund outflows and volatility linked to monthly derivatives expiry.

Despite weak sentiment in frontline indices, broader markets outperformed due to strong stock-specific buying, particularly in mid-cap and small-cap counters. The market also recovered from intraday lows during late trade, helped by easing volatility and buying in select sectors.

The BSE Sensex declined 141.90 points, or 0.19 per cent, to close at 75,867.80, while the Nifty 50 slipped 6.55 points, or 0.03 per cent, to settle at 23,907.15. During the session, the Nifty briefly approached the 24,000 level before profit booking erased gains.

In the last two trading sessions, the Sensex and Nifty have declined 0.81 per cent and 0.51 per cent respectively.

Private banking and financial stocks remained under pressure and weighed heavily on the benchmarks. Shares of HDFC Bank fell 2.54 per cent, while Oil and Natural Gas Corporation declined 4.94 per cent. ITC Limited also ended lower.

However, metal and automobile stocks provided support to the market as investors shifted towards sectors expected to benefit from easing commodity prices and improving domestic demand.

Broader indices continued to outperform the benchmark indices. The BSE MidCap gained 0.83 per cent, while the BSE SmallCap rose 0.49 per cent.

Market breadth remained positive on the BSE, where 2,275 shares advanced against 1,945 declines.

The India VIX, which measures market volatility, dropped sharply by 7.12 per cent to 14.98, indicating easing concerns among traders despite geopolitical uncertainty.

Investors also adjusted positions ahead of Thursday’s market holiday on account of Bakri Id, while the monthly Sensex expiry contributed to volatile trading during the session.

In the debt market, India’s benchmark 10-year bond yield eased slightly to 6.990 per cent from the previous close of 6.996 per cent. The rupee also strengthened marginally against the US dollar and was trading at 95.70 compared with the previous close of 95.7050.

Commodity prices remained under pressure. MCX Gold futures for June settlement fell 0.45 per cent to ₹1,56,194, while Brent crude declined 3.35 per cent to $96.24 per barrel amid hopes of easing tensions in the Middle East.

Global markets remained mixed as investors tracked developments in the Iran conflict and diplomatic efforts between Washington and Tehran. According to international reports, US forces recently carried out strikes in southern Iran targeting missile launch sites and Iranian vessels, highlighting the fragile nature of the ongoing ceasefire.

US President Donald Trump said negotiations with Iran were “proceeding nicely,” though he warned that military action remained possible if talks failed.

European markets traded higher, while Asian markets ended mixed. Overnight, Wall Street saw record highs in technology-driven indices. The S&P 500 and Nasdaq Composite closed at record levels, while the Dow Jones Industrial Average ended slightly lower.

Among individual stocks, Zee Entertainment Enterprises surged 10.49 per cent after announcing the launch of its sports broadcasting venture, Unite8 Sports. The company plans to launch four dedicated sports channels and is reportedly in talks with FIFA for broadcasting rights to the FIFA World Cup 2026 in India.

Timex Group India jumped 13.07 per cent after reporting a sharp rise in quarterly profit and revenue. Procter & Gamble Health gained 10.53 per cent after posting strong fourth-quarter earnings.

JK Tyre & Industries advanced 4.86 per cent after reporting an 80 per cent increase in quarterly profit, while Finolex Industries climbed 7.74 per cent on strong earnings growth.

Meanwhile, Gillette India rose 4.85 per cent after posting improved profitability.

Analysts said market sentiment is likely to remain cautious in the near term due to geopolitical risks and foreign fund movements. However, strong domestic corporate earnings, resilience in broader markets and easing crude prices are expected to provide support to investor sentiment in the coming sessions.