Last Updated on May 28, 2026 12:10 am by BIZNAMA NEWS
Metal, Auto Stocks Support Market While Financials Drag Benchmarks Lower
Zee Entertainment, Timex Group and P&G Health Surge on Strong Corporate Triggers
Our Business Correspondent
India’s benchmark equity indices ended marginally lower on Wednesday, extending losses for a second consecutive trading session as investors remained cautious amid persistent geopolitical tensions in the Middle East, foreign institutional investor (FII) outflows and volatility linked to monthly derivatives expiry.
Despite weakness in the frontline indices, broader markets displayed resilience with strong stock-specific buying helping mid-cap and small-cap counters outperform. Investors continued to monitor developments surrounding the fragile ceasefire between the United States and Iran, while softer crude oil prices and easing volatility provided some relief to domestic sentiment.
The trading session witnessed sharp swings, with the benchmark Nifty briefly approaching the 24,000 level in early trade before profit booking erased gains. Late-session buying, however, helped the market recover from intraday lows.
The 30-share 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. Over the last two trading sessions, the Sensex and Nifty have fallen 0.81 per cent and 0.51 per cent respectively.
Market participants attributed the subdued trend to a combination of global uncertainty and continued profit-booking after the recent rally.
Financial Stocks Drag Benchmarks
Private banking and financial shares emerged as the key laggards during the session, weighing heavily on the benchmark indices. Shares of HDFC Bank declined 2.54 per cent, making it one of the biggest drags on the Nifty.
Energy major Oil and Natural Gas Corporation fell 4.94 per cent amid weakness in crude-linked counters, while ITC Limited slipped 0.48 per cent.
Analysts said the correction in banking shares was largely due to valuation concerns and continued selling by foreign investors in select heavyweight counters.
However, metal and automobile stocks provided support to the market, aided by hopes of improving demand conditions and easing raw material prices.
Broader Markets Continue to Shine
Unlike the benchmark indices, broader markets maintained their positive momentum. The BSE MidCap index rose 0.83 per cent, while the BSE SmallCap gained 0.49 per cent.
Market breadth also remained positive, indicating healthy participation beyond large-cap stocks. On the BSE, 2,275 shares advanced, while 1,945 declined and 182 remained unchanged.
The broader market outperformance reflected investors’ preference for company-specific opportunities, especially among firms reporting strong quarterly earnings.
Volatility Eases Ahead of Market Holiday
The India VIX, often referred to as the market’s fear gauge, fell sharply by 7.12 per cent to 14.98, suggesting easing concerns over near-term volatility despite geopolitical uncertainty.
Traders also adjusted positions ahead of Thursday’s market holiday on account of Bakri Id, which contributed to choppy movements during the latter half of the session.
The monthly expiry of Sensex derivatives contracts further amplified intraday volatility.
Bond Yields, Rupee and Commodities
In the debt market, India’s benchmark 10-year government bond yield edged lower to 6.990 per cent compared to the previous close of 6.996 per cent, reflecting stable expectations around domestic inflation and interest rates.
The Indian rupee also strengthened marginally against the US dollar. The partially convertible rupee was quoted at 95.70 against the dollar compared with the previous session’s close of 95.7050.
Commodity markets, meanwhile, witnessed a decline in gold and crude oil prices.
MCX Gold futures for June settlement fell 0.45 per cent to ₹1,56,194, tracking weakness in global bullion prices as risk appetite improved slightly.
Brent crude futures for July settlement declined 3.35 per cent to $96.24 per barrel amid expectations that diplomatic negotiations between Washington and Tehran could reduce supply risks in the Middle East.
The US Dollar Index, which measures the greenback against a basket of major currencies, slipped 0.09 per cent to 99.08.
Global Markets Mixed Amid Iran Conflict
Global equity markets remained mixed as investors assessed developments in the Iran conflict and monitored signals from the United States regarding future military action.
European markets traded higher during the day, supported by easing oil prices and optimism over potential diplomatic progress.
Asian equities ended mixed as concerns persisted over recent US military operations in Iran and the fragile ceasefire between Washington and Tehran.
According to international media reports, US forces carried out what the Pentagon described as “self-defense” strikes in southern Iran earlier this week, targeting missile launch sites and Iranian vessels allegedly attempting to deploy mines.
The developments highlighted the fragile nature of the ceasefire, even as negotiations between the two countries reportedly moved closer to a possible agreement.
US President Donald Trump said discussions with Iran were “proceeding nicely,” but warned that Washington could take offensive measures if talks collapsed.
Wall Street Hits Record Highs
Overnight, US markets delivered a mixed performance, with technology stocks lifting the broader market to fresh record highs.
The S&P 500 rose 0.61 per cent to close at a record 7,519.12, while the Nasdaq Composite advanced 1.19 per cent to finish at an all-time high of 26,656.18.
However, the Dow Jones Industrial Average declined 118.02 points, or 0.23 per cent, to settle at 50,461.68.
Strong gains in technology and growth-oriented stocks offset concerns related to geopolitical tensions and rising global uncertainty.
US Dow Jones futures were trading over 220 points higher during Asian market hours on Wednesday, indicating a positive opening for Wall Street later in the day.
Zee Entertainment Jumps on Sports Expansion
Among individual stocks, Zee Entertainment Enterprises emerged as one of the top gainers, soaring 10.49 per cent after announcing a major expansion into sports broadcasting.
The company unveiled its new sports broadcasting venture, Unite8 Sports, and said it plans to launch four dedicated sports channels in Hindi and English.
The channels are expected to feature football, cricket, kabaddi, badminton, wrestling, boxing and combat sports content.
The company also disclosed that it is in discussions with FIFA regarding broadcasting and streaming rights for the FIFA World Cup 2026 in India.
Analysts believe the move could significantly strengthen Zee’s sports media presence and diversify its revenue streams amid increasing competition in the entertainment industry.
Timex Group India Surges on Strong Earnings
Shares of Timex Group India rallied 13.07 per cent after the company reported a sharp rise in quarterly earnings.
The watchmaker’s standalone net profit surged nearly 196 per cent year-on-year to ₹27.34 crore during the March quarter, while revenue from operations rose more than 73 per cent to ₹235.20 crore.
The company also reported robust sequential growth, reflecting improving consumer demand and stronger retail performance.
P&G Health Gains After Quarterly Results
Procter & Gamble Health climbed 10.53 per cent after posting healthy earnings for the fourth quarter of FY26.
The company’s standalone net profit increased 54.63 per cent year-on-year to ₹94.60 crore, while revenue from operations rose 19.12 per cent to ₹370.45 crore.
Investors responded positively to the earnings performance despite a marginal sequential decline in revenue.
JK Tyre Advances on Profit Growth
Tyre manufacturer JK Tyre & Industries gained 4.86 per cent after reporting an 80.18 per cent jump in consolidated net profit for the March quarter.
The company posted a net profit of ₹177.99 crore compared to ₹98.78 crore in the corresponding period last year.
Revenue from operations increased 12.36 per cent to ₹4,223.44 crore.
Improved operational efficiency and stable demand conditions supported the company’s earnings growth.
Gillette India, Finolex Industries Rally
Gillette India rose 4.85 per cent after reporting a 21.31 per cent rise in quarterly net profit to ₹192.51 crore.
Revenue from operations grew 3.19 per cent to ₹792 crore during the quarter.
Meanwhile, Finolex Industries surged 7.74 per cent after posting a 58.74 per cent increase in consolidated net profit to ₹261.25 crore.
The company’s revenue rose 12.12 per cent year-on-year to ₹1,313.88 crore.
Other Earnings-Driven Movers
Gandhar Oil Refinery (India) edged higher after reporting a 248.59 per cent jump in quarterly consolidated profit to ₹40.68 crore.
Revenue from operations increased 13.69 per cent to ₹1,093.37 crore.
Advait Energy Transitions advanced after its quarterly net profit climbed 55.68 per cent year-on-year to ₹17.67 crore.
Revenue from operations rose 18.04 per cent to ₹228.19 crore.
However, Kilburn Engineering declined 3.61 per cent despite reporting a 21.80 per cent increase in consolidated net profit and a 49.03 per cent rise in revenue.
Investors Await Global Clarity
Market experts said investors are likely to remain cautious in the near term amid uncertainty surrounding geopolitical developments, foreign fund flows and global commodity prices.
However, strong domestic earnings, resilient economic indicators and broad-based participation in mid-cap and small-cap stocks continue to provide support to the market.
Analysts believe sustained easing in crude oil prices and stability in global markets could improve investor sentiment in coming sessions, though volatility may persist until there is greater clarity on the geopolitical front and monetary policy outlook.