The Indian stock market ended Wednesday's trade, August 26, marginally lower, as gains in banking and metal stocks were offset by a sell-off in the technology and consumer goods sectors.
The Nifty 50 dropped 0.52% to 24,207, while the Sensex declined 0.05% to 77,614. The broader markets were mixed, with the Nifty Midcap 100 index slipping 0.10%, while the Nifty Smallcap 100 index gained 0.81%.
Among the sectoral indices, cement, chemicals, private banks, and PSU banks were among the top performers, while technology, FMCG, consumer durables, realty, and auto stocks emerged as the major laggards.
Vinod Nair, Head of Research at Geojit Investments, said, "The domestic market ended marginally lower, giving up early gains as sectoral divergence weighed on benchmarks through the session. Inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realization prospects. However, these gains were largely offset by weakness in IT stocks after the U.S. paused visa appointments amid an immigration crackdown, which rekindled margin pressure concerns."
In the commodity market, crude oil prices fell on hopes that the Strait of Hormuz could reopen after Iran resumed talks with Oman on managing the strategic waterway. Brent crude, the international benchmark, fell $1.60 to $86.98 a barrel.
The top diplomats of Iran and Oman reportedly met on Tuesday to discuss a phased approach to managing ship traffic through the Strait of Hormuz.
Earlier, US President Donald Trump had threatened to bomb Oman if the country got in the way of the US blockade of Iranian ships in the Strait of Hormuz.
Oil prices also remained under pressure as investors kept an eye on the ongoing talks. A delegation from Pakistan also held talks with Iran's president on reviving negotiations to end the Iran-US conflict, Associated Press (AP) reported, citing the Pakistani military.
Metal stocks were among the top performers in Wednesday's trade, with Hindustan Zinc leading the rally, surging 5.7% to ₹626 apiece. It was followed by SAIL, Hindustan Copper, Vedanta, NMDC, and Jindal Steel, which all closed with gains ranging between 2% and 5.6%.
Meanwhile, after moving sideways in recent sessions, shares of SBFC Finance rebounded 9% to ₹101 apiece. The winning streak for IDBI Bank was also extended to a fifth consecutive session, with the stock surging another 7.3% to ₹94.75 apiece.
Cyient and Capri Global Capital also advanced 7.3% and 7%, respectively. Both two-wheeler manufacturers—Ola Electric and Ather Energy—gained 5% and 4%, respectively. Other stocks, including Bank of Maharashtra, C.E. Info Systems, Dalmia Bharat, Aditya Infotech, PhysicsWallah, and Global Health, also surged over 4%.
Varun Beverages emerged as one of the top losers in Wednesday's trade, with the stock falling 4% to ₹421 apiece after the company announced its entry into the alcoholic beverages business. Billionbrains Garage also saw its shares decline 3.3% to ₹196.20 apiece, erasing all of Tuesday's gains.
Meanwhile, Jubilant FoodWorks came under profit-booking pressure, falling 3%, though the stock still remains up 14% so far in August. Losses in Premier Energies further deepened, with the stock declining another 3% to ₹1,005. During the intraday session, it even slipped below the ₹1,000 mark.
Tata Communications, Vishal Mega Mart, Indus Towers, Godrej Industries, Bharat Forge, Bharti Airtel, BLS International Services, Graphite India, and Signature Global were also among the major laggards, with all closing down more than 2%.
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