Sensex Slips Nearly 273 Points as HDFC Bank and IT Stocks Weigh on Dalal Street

Indian equities remained rangebound with a negative bias on Tuesday, as weakness in heavyweight HDFC Bank and select technology stocks offset earnings-led buying elsewhere. At 2:01 PM IST, the Sensex was down 272.51 points, or 0.35 per cent, at 77,436.01. The Nifty 50 declined 63.70 points, or 0.26 per cent, to 24,174.80.

The broader market continued to show better resilience than the headline indices. The Nifty Bank slipped 0.13 per cent to 57,869.10, largely because of selling in HDFC Bank, SBI and Bank of Baroda. The Nifty Midcap 100 gained 0.22 per cent, while the Nifty Smallcap 100 was up 0.36 per cent. Market breadth was nearly balanced, with 1,918 shares advancing against 1,858 declining.

Sectorally, Nifty Realty emerged as the best performer, supported by selective buying in property stocks. Nifty Pharma rose 0.35 per cent and Nifty Auto added 0.10 per cent. On the weaker side, Nifty IT fell 0.60 per cent, Nifty PSU Bank lost 0.56 per cent and Nifty FMCG declined 0.51 per cent. Elevated crude oil prices and continued selling in large financial stocks kept the overall mood cautious.

Among individual stocks, Karur Vysya Bank surged 9.7 per cent after reporting an upbeat June quarter performance. SBI Funds Management made a strong debut, listing at a 6.85 per cent premium following its USD 1.03 billion IPO. Adani Energy Solutions gained over 2 per cent after its quarterly net profit more than doubled to Rs 1,149 crore, while revenue rose 42.4 per cent to Rs 9,711 crore. HDFC Bank slipped 1.3 per cent, extending Monday’s 5.1 per cent fall, as investors remained concerned about margin pressure and uncertainty over the CEO’s reappointment process.

Institutional flows remained mixed. According to the latest provisional cash-market data available for Monday, foreign institutional investors sold shares worth a net Rs 1,121.04 crore. Domestic institutional investors provided support with net purchases of Rs 1,312.03 crore.

Global cues offered little directional support. The S&P 500 had ended 0.19 per cent lower and the Nasdaq slipped 0.05 per cent, although Japan’s Nikkei climbed about 3 per cent. Brent crude hovered near USD 90 per barrel as investors tracked US-Iran mediation reports, fresh attacks and threats to regional energy flows. For India, sustained crude prices near these levels remain a concern for inflation, the rupee and corporate margins.

For the remainder of the session, traders will watch whether the Nifty holds the 24,030 to 24,050 support zone. Immediate resistance is placed around 24,260 to 24,280. Stock-specific action may remain high as more June quarter results are announced, while crude oil and Middle East developments could continue to influence risk appetite.

This market update is commentary based on Intraday data and should not be treated as a recommendation.

Disclaimer: The article is for informational purposes only and not investment advice.