Benchmarks End Flat as Banking Weakness Offsets Metal Gains

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

May 27, 2026 at 11:44 AM IST

Indian equity benchmarks ended largely flat on Wednesday as weakness in banking and financial stocks offset gains in metal shares. At the same time, investors remained cautious amid uncertainty surrounding the fragile US-Iran ceasefire. The Nifty50 slipped 0.03% or 6.55 points to close at 23,907.15, while the BSE Sensex declined 0.19% or 141.90 points to settle at 75,867.80.

Market sentiment remained fragile after Iran accused the US of violating the ceasefire by conducting strikes near the Strait of Hormuz, raising concerns that efforts to end the prolonged conflict in West Asia could face further setbacks. Investors continued to monitor developments closely as geopolitical uncertainty remained elevated.

Heavyweight HDFC Bank declined 2.6% after reports alleged that the lender paid ₹450 million to a state road development corporation to attract deposits. The bank denied any wrongdoing and rejected allegations of misconduct. Financial services and private banking stocks remained among the worst-performing sectors during the session.

Sectorally, financials underperformed, while media, metal and auto shares showed resilience. Oil and Natural Gas Corporation, HDFC Bank and HDFC Life Insurance were among the top losers on the Nifty50 index. Broader markets remained relatively stronger, with the Nifty MidCap and Nifty SmallCap indices gaining 0.42% and 0.15%, respectively.

Top Movers of the Day

Zee Entertainment Enterprises jumped over 9% to about ₹90.8 as heavy volumes and renewed buying interest lifted the Nifty Media index, with traders betting on a turnaround after months of underperformance.

Delta Corp surged more than 8% to roughly ₹80.5, extending its sharp recent rally as speculative interest in gaming and casino names picked up alongside improving risk appetite in mid‑caps.

Procter & Gamble Health soared nearly 11% to around ₹6,275 after the company’s strong earnings and optimistic outlook on premium healthcare demand drove aggressive institutional buying.

Adani Total Gas climbed about 14% to roughly ₹813.2, continuing its up‑move as investors stayed positive on the city‑gas growth story and improving sentiment across Adani group stocks.

Finolex Industries rose more than 8% to around ₹193.3 after Q4 profit jumped 59% year‑on‑year, with better realisations and lower input costs boosting margins in the PVC pipes and fittings business.

Jaiprakash Power Ventures rallied over 19% to about ₹22.9 after Adani Power agreed to buy a 24% stake, sparking optimism around balance‑sheet repair and future growth prospects for the utility.

Gillette India advanced nearly 6% to around ₹8,350 as Q4 net profit rose to about ₹1.93 billion on revenue of roughly ₹7.92 billion, showcasing strong pricing power and premium grooming‑product demand.

Bharat Coking Coal gained more than 2% to about ₹38.8 after the miner announced the start of commercial operations at a 2‑million‑tonne‑per‑annum coal washery, bolstering expectations of higher value‑added volumes.

Coal India rose about 1.2% to roughly ₹463 after the government launched a ₹50 billion offer for sale at a 10% discount, triggering supply overhang worries and profit‑taking in the coal major.

LIC fell nearly 3% to about ₹830 on reports that the government may sell around a 2% stake next month, a deal that could raise to US$1 billion and add to near‑term supply pressure.

ONGC dropped about 4% to roughly ₹273 despite a 46% year‑on‑year jump in Jan-Mar quarter net profit and 4% revenue growth, as investors booked profits and questioned the sustainability of recent earnings strength.

Aequs declined more than 10% to around ₹190.4 after swinging to a consolidated net loss of roughly ₹541 million for the Jan-Mar quarter, despite 47% revenue growth, raising concerns about cost pressures and execution in its aerospace and consumer businesses.

Futures & Options
Nifty June 2026 futures closed at 24,006.20, a premium of 99.05 points over the spot Nifty 50 close of 23,907.15, indicating resilient derivatives positioning despite a subdued cash market session. In the cash market, the Nifty 50 slipped marginally by 6.55 points or 0.03%, while market volatility eased sharply with India VIX declining 7.12% to 14.98.

Among stock futures, Coal India, HDFC Bank and ICICI Bank were the most actively traded contracts in the F&O segment of the NSE. The June 2026 derivatives series will expire on 30 June 2026.

Bonds
India’s government bond yields stayed close to 7% on Wednesday as fresh US-Iran tensions lifted oil prices and kept investors cautious ahead of the upcoming debt auction. The benchmark 10-year bond yield ended at 6.9960%, little changed from Tuesday’s 6.9943%.

Traders balanced rising inflation concerns linked to higher Brent Crude prices against softer US Treasury yields. Brent crude rebounded toward $98 per barrel following recent US military strikes in southern Iran, reviving worries over supply disruptions and imported inflation risks for India. Investor attention also remained focused on Friday’s government bond auction, where New Delhi plans to raise ₹280 billion, including through the sale of the 6.68% 2040 security.

Forex
Indian rupee ended largely unchanged on Wednesday as traders monitored volatile oil prices and continued intervention by the Reserve Bank of India to support the currency. The rupee closed at 95.69 against the US dollar, nearly flat compared with Tuesday’s close of 95.68. The currency briefly weakened toward the 95.80 level during the session before dollar sales by state-run banks helped stabilise the market.

Traders also observed state-run banks conducting dollar-rupee buy/sell swap transactions, which helped cool forward premiums and manage liquidity conditions. Market sentiment remained sensitive to fluctuations in Brent Crude prices and ongoing uncertainty surrounding developments in West Asia.

Crypto
Crypto markets weakened sharply on Wednesday as risk sentiment deteriorated across global markets, dragging the total crypto market capitalisation down nearly 1.5% to around $2.53 trillion. Bitcoin declined around 3% to trade near $75,700, briefly touching lows close to the $75,000 mark. Despite the latest pullback, Bitcoin’s market capitalisation remained above $1.5 trillion, while daily trading volumes exceeded $35 billion, reflecting continued strong investor participation.

Ethereum traded in the $1,980-$2,100 range, declining modestly over the past 24 hours as volatility persisted across the broader cryptocurrency market. Market sentiment also deteriorated sharply, with the Crypto Fear & Greed Index dropping from fear territory at 34 to extreme fear at 25, signalling rising caution among traders.

US Stock Futures
US stock futures moved higher on Wednesday as investors monitored developments in US-Iran negotiations and maintained optimism about the artificial intelligence sector. Futures linked to the Dow Jones Industrial Average gained 0.4%, while S&P 500 futures rose 0.3%. Nasdaq-100 futures outperformed by gaining 0.5%, supported by continued strength in semiconductor and AI-related stocks.

Investor sentiment improved on hopes of a lasting US-Iran peace deal, easing worries over energy supplies and inflation. AI-led optimism also supported markets. Still, uncertainty in West Asia remained high after Marco Rubio said any agreement could take several more days. Disruption to commercial traffic through the Strait of Hormuz kept Brent crude sensitive to geopolitical risks.

US Treasury Notes
US Treasury yields edged lower on Wednesday as fixed-income markets stabilised following recent volatility driven by inflation concerns and geopolitical risks. The benchmark 10-year Treasury yield declined to around 4.473% from its previous close of 4.491%, while longer-duration bond yields also steadied with the 30-year Treasury yield holding near 5.01%. The move reflected a modest rebound in bond prices as investors returned to safer assets.

Treasury markets also tracked relatively stable equity futures after recent record highs in US stocks, while traders remained focused on developments in West Asia, movements in Brent Crude prices and expectations around future Federal Reserve policy decisions.

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