Market Wrap: Sensex Drops 239 Points, Nifty Holds 24,750; FMCG Slips, PSU Banks Lead Gains

Indian benchmark indices closed  trading sessions in the red, indicating a cautious mood driven by certain stock movements and general market sentiment. The Sensex closed 239.31 points down at 81,312.32, 0.29% lower. The Nifty 50 also closed below the 24,800 mark, down 73.75 points, or 0.30%, at 24,752.45.

Market Performance Overview

The downtrend was largely caused by heavyweights such as ITC, which were subjected to heavy selling pressure. Block deals and continuous IPO activity also seemed to have an impact on market sentiment during the day. While Sensex and Nifty posted losses, the broader market had a mixed response. The BSE SmallCap index gained, up 0.49% to 52,122.64, whereas the Nifty Midcap 100 lost marginally 0.02%, closing at 57,141.40. 

Sectoral performance was mixed, with Nifty Bank and Nifty Financial Services moving up marginally (0.12% each), while Nifty IT (-0.10%), Nifty Auto (-0.68%), Nifty Pharma (-0.61%), and Nifty FMCG (-1.49%) were lower. Metal stocks, however, were reported to shine.

Stock Movements and Corporate News

A few individual stocks were on the radar due to news and trading. ITC shares fell 4% after British American Tobacco offloaded a 2.5% stake in the company for ₹12,900 crore. At the same time, LIC shares had a big jump, rising 9% at one point, after the company announced a 38% year-on-year increase in its Q4 net profit and a final dividend of ₹12 per share.

Among other prominent movements, shares of IndusInd Bank and UltraTech Cement fell by 2%. Shares of NMDC fell 3% following the announcement of a sequential fall in Q4 profit even as FY25 consolidated net profit rose by 17%. Bharat Dynamics shares fell 6% after Q4 profit declined by 5.5% YoY. On the positive side, Triveni Engineering shares surged 10% on good Q4 numbers and favorable sugar price outlook, while Aarti Industries rose 3% on a double upgrade from UBS, with an estimated 31% possible upside.

Among the broader market, the biggest gainers on the NSE 500 were IFCI (15.20%), Techno Electric (15.00%), Schneider (11.60%), and ITI Ltd (10.00%). Biggest losers were Escorts (-4.51%) and Action Construction (-4.12%).

Primary Market Activity

The primary market was busy. The Blue Water Logistics IPO was subscribed more than 2 times till Day 2, whereas the Aegis Vopak Terminals IPO was in its third day of bidding. The Leela IPO is said to have sailed through on its last day, led by Qualified Institutional Buyer (QIB) subscriptions, and the Scoda Tubes IPO also completed its first day, once again due to QIBs. 

Belrise Industries shares traded at an 11% premium to their IPO price, sending a good message for new listings. Hero FinCorp also got the SEBI go-ahead for its ₹3,668 crore IPO.

In commodity bourses, gold prices were forecast by analysts to possibly decline as much as ₹93,000 per 10 grams, even as the metal moved up slightly through the day, at ₹95,712.00, a 0.6% gain. Oil prices too crept higher. The Indian Rupee closed the day almost flat against the US dollar, sandwiched between importers' demand and a rise in other Asian currencies. The USD/INR benchmark stood at 85.44.

Overall, the market closed in the red as investors absorbed corporate performance, overseas clues, and local selling pressure, especially in top-weighted stocks such as ITC.

Indian equity benchmarks moved within a narrow range on Wednesday, showing a slight negative bias. By 12:53 p.m., the broader indices were marginally lower by 0.03%. The Sensex was down 30 points, trading near the 81,525 mark, while the Nifty50 slipped around 10 points to 24,815.

This flat to subdued tone came despite positive cues from other Asian markets, as investor sentiment remained cautious in light of rising U.S. Treasury yields and simmering trade tensions between the U.S. and the EU.

Market participants expect a period of consolidation following the close of the earnings season, with attention shifting to the direction of Foreign Portfolio Investor (FPI) flows. Notably, May witnessed the highest FPI inflows in eight months, totaling ₹14,429 crore, supported by a softer dollar, easing geopolitical concerns, and resilient corporate performance.

Despite lingering near-term uncertainties, analysts maintain that India’s structural economic fundamentals continue to offer a strong underpinning for equity markets.

Here’s a look at how individual Nifty50 stocks were performing around mid-day:

Top 5 Gainers in the Market

• Bharat Electronics Ltd (BEL)

• Opening Price: ₹385.45
• Current Market Price (LTP): 391.75
• Percentage Change: 0.65%

Bharat Electronics Ltd (BEL) shares are up slightly today reflecting ongoing positive sentiment from recent strong quarterly results and new defence orders, though there is no major fresh news driving the stock specifically on 28 May 2025. The broader market is flat, so BEL’s modest gain may simply reflect its strong fundamentals and investor confidence from recent order wins and earnings growth.

• HDFC Life (HDFCLIFE)

• Opening Price: ₹779.80
• Current Market Price (LTP): 789.00
• Percentage Change: 1.19%

HDFC Life is up  today due to positive momentum from strong recent quarterly results and continued investor confidence in its growth outlook. 

• Bajaj Finance(BAJFINANCE)

• Opening Price: ₹9245.00
• Current Market Price (LTP): 9247
• Percentage Change: 0.83%
  

Share movement of Bajaj Finance is reflecting continued positive sentiment from strong quarterly results and robust business growth, despite no major fresh news or announcements on 28 May 2025. 

• Bharti Airtel (BHARTIARTL)

• Opening Price: ₹1848.00
• Current Market Price (LTP): 1858.80
• Percentage Change: 0.81%

Bharti Airtel is up modestly today 0.81% primarily due to positive sentiment from its recent financial performance and strong positioning as a leading telecom stock in the Nifty 50. 

• Adani Ports (ADANIPORTS)

•   Opening Price: ₹1405
•  Current Market Price (LTP): 1413.90
• Percentage Change: 0.69%

Adani Ports is up today as brokerage Motilal Oswal reiterated its buy rating with a 15% upside target, citing strong growth prospects, market share gains, and ambitious expansion plans. Positive sentiment from solid FY25 performance and robust future guidance is supporting the stock.

Top 5 Losers in the Market

• Nestle India (NESTLEIND)

• Opening Price: ₹2452.10
• Current Market Price (LTP): ₹2418.40
• Percentage Change: -1.73%

Nestlé India is trading in the red  today due to profit booking after recent gains and a lack of fresh positive triggers, alongside ongoing cautious sentiment in the FMCG sector. Lower trading volume compared to average and mixed analyst outlooks are also contributing to the decline.

• Bajaj Auto (BAJAJ-AUTO)

• Opening Price: ₹8990
• Current Market Price (LTP): ₹8812
• Percentage Change: -1.68

Bajaj Auto is down today due to profit booking after recent gains and a bearish technical signal from the 200-day EMA crossover on the daily chart. The broader auto sector is also facing mild pressure, contributing to the decline.

• Apollo Hospital (APOLLOHOSP)

• Opening Price: ₹7100
• Current Market Price (LTP): ₹6971
• Percentage Change: -1.45

Shares of Apollo Hospitals fall due to profit booking after recent gains. No major fresh negative news is reported; the decline is mainly driven by broader market sentiment. 

• ITC (ITC)

• Opening Price: ₹417.70
• Current Market Price (LTP): ₹420.10
• Percentage Change: -1.40

ITC shares slide after British American Tobacco (BAT), its largest shareholder, sold 2.5% of its stake via a block deal, creating selling pressure and negative sentiment in the market. The move is part of BAT’s strategy to reduce debt and boost its share buyback program.

• Tata Consumer Products (TATACONSUM)

• Opening Price: ₹1138.40
• Current Market Price (LTP): ₹1125.60
• Percentage Change: -1.12

Tata Consumer Products is trading lower today, largely in line with the broader weakness seen across the FMCG sector. The decline appears to be a result of profit booking, despite the company’s strong fundamentals and a recent dividend announcement. 

Indian Markets Open Flat Amid Global Cues and Earnings Awaited

Indian equities began Wednesday’s session on a subdued note, with benchmark indices slipping marginally in early trade. The BSE Sensex declined by 180 points, or 0.22 percent, to 81,372, while the NSE Nifty50 eased 34 points, or 0.14 percent, to 24,792. The broader market, however, displayed relative strength, with the Nifty MidCap index edging up by 0.1 percent and the Nifty SmallCap advancing 0.4 percent.

As of 9.46am, Sensex is down about 120 points or 0.13% and Nifty is trading near 25,795, down by 0.12%.

Investor sentiment remains cautious amid a lack of immediate domestic triggers. Market participants are likely to take cues from a packed earnings calendar and evolving global macro developments. 

Sectoral Moves: IT Resilient, FMCG Under Pressure

Sectorally, the Nifty IT index traded 0.45 percent higher, supported by overnight strength in U.S. technology stocks. The Nifty Media index also saw modest gains of 0.2 percent. On the other hand, FMCG stocks witnessed broad-based selling pressure, with the Nifty FMCG index slipping 1.3 percent in early deals, likely on profit-booking after recent outperformance.

Earnings in Focus: March Quarter Results from Key Companies

The market is closely tracking corporate earnings scheduled for release later today. Companies slated to report their results for the March 2025 quarter include Cummins India, IRCTC, Steel Authority of India (SAIL), 3M India, Deepak Nitrite, JSW Holdings, Nuvama Wealth Management, Welspun Corp, Bata India, Natco Pharma, Finolex Cables, Granules India, Avanti Feeds, and Birlasoft.

Investors will be keenly watching for management commentary on demand outlook, margin trends, and capex plans, particularly amid a mixed global economic backdrop.

Wall Street Rally on Trump’s Tariff Delay Boosts Global Sentiment

U.S. equity markets closed sharply higher overnight following U.S. President Donald Trump’s decision to postpone a proposed 50 percent tariff on European Union imports. The tariff, originally set to take effect on June 1, has been deferred to July 9, following discussions with European Commission President Ursula von der Leyen.

The Dow Jones Industrial Average surged 1.8 percent, or 740 points, while the S&P 500 gained 2.05 percent. The Nasdaq Composite advanced 2.47 percent, led by a strong rebound in technology stocks, including Tesla, which rose 7 percent after Elon Musk indicated he would devote more time to his core businesses.

The postponement of the tariff deadline helped ease fears of renewed transatlantic trade tensions, lifting risk appetite globally. U.S. consumer confidence data also exceeded expectations, while a fall in bond yields added further support to equity markets.

Asian Markets Track Wall Street Gains; Oil Prices Firm

Asian markets opened higher this morning, tracking the positive momentum from Wall Street. Investor risk appetite has improved following signs of de-escalation in U.S.–EU trade tensions. Meanwhile, U.S. equity futures held steady in early Asian hours.

Crude oil prices edged higher amid fresh concerns around supply constraints. Brent crude futures rose 0.73 percent to trade at $64.56 per barrel, while West Texas Intermediate (WTI) crude gained 0.8 percent to $61.38 per barrel. The uptick comes after the U.S. government restricted Chevron’s ability to export crude from Venezuela under a revised license. Analysts noted that the loss of Venezuelan barrels could prompt U.S. refiners to source more crude from the Middle East, tightening global supply in the near term.

The OPEC+ ministerial meeting scheduled for later today is expected to maintain the status quo on policy. However, a smaller meeting among key producers on Saturday may yield clarity on a potential output hike for July.

Rupee Weakens Against Dollar on Firmer DXY and Oil Prices

The Indian Rupee opened lower at 85.64 per U.S. dollar, compared to the previous close of 85.33. The local currency came under pressure due to a rebound in the dollar index, which climbed 0.43 percent to 99.36 overnight, and a rise in global crude oil prices.

The rupee had previously strengthened for two consecutive sessions before reversing course on Tuesday, ending at 85.34. According to dealers, the pullback was largely driven by dollar strength and the uptick in oil prices, which could worsen India’s import bill.

Dilip Parmar, senior research analyst at HDFC Securities, noted that the dollar gained as U.S. bond yields recovered, supported by indications from Japan regarding potential reduction in bond issuance. This, in turn, encouraged investors to shift into dollar-denominated assets.

Gold and Silver Remain Firm as Safe-Haven Demand Persists

Precious metals traded steady to firm in early trade amid ongoing market volatility and macro uncertainty. On the Multi Commodity Exchange (MCX), gold was quoted at ₹96,060 per 10 grams, while silver stood at ₹97,943 per kilogram. According to the Indian Bullion Association, the price of 24-carat gold was ₹96,190 per 10 grams as of May 27.

Market experts continue to recommend gold and silver as strategic hedges in diversified portfolios, particularly during periods of geopolitical stress and shifting central bank policies.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here