The Indian stock market resumed its downtrend in Tuesday’s session, 28 April, after a brief rally, as tensions in the Middle East kept crude oil prices elevated and banking stocks came under pressure following the Reserve Bank of India’s final credit-loss guidelines.
The Nifty 50 concluded the trade 0.40% lower at 23,995, while the S&P BSE Sensex closed at 76,886, down 0.54% compared with Monday’s close. The broader markets, however, outperformed the benchmark indices, with both the Nifty Midcap 100 and Nifty Smallcap 100 finishing the trade in the green, indicating that the undertone of sentiment remains firmly in favour of bulls.
Sectoral performance was mixed, with Nifty PSU Bank and Nifty Private Bank each losing over 2%.
The Nifty Auto, Nifty IT, and Nifty Realty also closed with losses of up to 1%. On the gaining side, Nifty Oil and Gas rose 1.55%, while Nifty Chemicals and Nifty Metals advanced 0.58% and 0.51%, respectively.
Vinod Nair, Head of Research at Geojit Investments Limited, said, “Domestic equities are yielding to regulatory tightening and geopolitical pressures, struggling to sustain the recent gains from their lows. Banking stocks led the decline after the RBI confirmed its expected credit loss framework and final asset classification norms, raising concerns over higher provisioning. Investor caution ahead of the US Fed rate decision added to the selling pressure.”
“Additionally, a hawkish BoJ stance, weak Asian markets, and ongoing West Asian tensions kept Brent prices elevated, heightening imported inflation risks for India. Persistent FII outflows and rupee weakness further weighed on sentiment, though DII buying provided some support,” he further added.
PSU banks, auto and select midcaps drag market lower
Motherson Sumi Wiring India emerged as the top laggard in the pack, tumbling 4.5%, while Tata Technologies, OneSource Specialty Pharma, Elecon Engineering, Zensar Technologies, India Cements, Can Fin Homes, SBI Cards and Payment Services, Thermax, Schneider Electric Infrastructure, and CarTrade Tech recorded losses in the range of 3% to 3.7%.
Losses in Ola Electric Mobility further extended as the stock dropped another 3% to ₹35.81 apiece, erasing most of its recent gains. Heavyweights Axis Bank, HCL Technologies, and InterGlobe Aviation also posted losses of around 2.6%.
Maruti Suzuki India reacted negatively to its March quarter results, causing the stock to shed 2.5%. The sell-off in Canara Bank further deepened, with the stock crashing 2.43% to hit a two-week low of ₹137 apiece.
In addition, the other 11 constituents of the PSU Bank index also closed in the red, with Union Bank of India plunging by 3.2%. It was followed by Bank of Maharashtra, Punjab & Sind Bank, Bank of Baroda, Bank of India, and Punjab National Bank, all of which fell by over 2%.
Q4 earnings boost select stocks
Buying in Cohance Lifesciences further strengthened as the stock gained another 14%, a day after hitting its 20% upper circuit limit.
Tata Chemicals finished the session 11% higher at ₹802 apiece after its subsidiary Rallis India posted a better-than-expected performance in the March quarter.
Piramal Enterprises shares also reacted positively to the Q4 numbers, surging 9% to ₹2,008 apiece, while Nippon Life India Asset Management and Canara Robeco Asset Management Company also reacted positively to their March quarter earnings, jumping 3.4% and 2.9%, respectively.
Coal India, too, gained traction after its Q4 results, with the stock advancing 3.2%. Other Adani Group stocks, including Adani Enterprises, Adani Power, and Adani Green Energy, rallied 3.9%, 2.4%, and 1.7%, respectively.
Both Oil and Natural Gas Corporation and Oil India settled higher by 5.4% and 4.4%, respectively.
Chennai Petroleum Corporation reversed its recent weakness as the stock settled 7.5% higher, ending its three-day losing run. Ahead of Q4 results, Force Motors advanced 3.6% to ₹20,767 apiece.
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