Equity benchmarks experienced a decline after a flat start on Wednesday, as losses in HDFC Bank and ONGC counterbalanced gains in the metal and energy sectors. Investors exhibited caution amid ongoing tensions regarding the fragile US-Iran truce and developments in the Strait of Hormuz.
The BSE Sensex dropped by 141.90 points, or 0.19 percent, closing at 75,867.80, while the NSE Nifty 50 fell by 6.55 points, or 0.03 percent, settling at 23,907.15. However, the broader markets showed resilience, with midcap and smallcap indices recording small gains. Vikram Kasat, Head of Advisory at PL Capital, noted that midcap and smallcap stocks demonstrated strength amid selective buying.
Sector-wise, media topped the gainers’ list, followed by metal and auto stocks. Conversely, the banking, financial services, IT, and oil & gas sectors faced declines.
Top Gainers & Losers of Nifty 50
Within the Nifty 50, Tata Motors Passenger Vehicles (TMPV), Hindalco, Power Grid, Eternal, and NTPC emerged as the top gainers. In contrast, ONGC and HDFC Bank were the biggest decliners. Other notable losers included Wipro, Dr. Reddy’s Laboratories, ICICI Bank, and Infosys.
HDFC Bank saw a 2.6 percent decline following reports indicating that the lender made a ₹45 crore payment to a state road development corporation to attract substantial deposits. In response to these allegations, HDFC Bank’s spokesperson dismissed any insinuation of wrongdoing.
ONGC’s stock reacted to its Q4FY26 earnings report, while Coal India’s stock remained volatile after the government initiated an offer for sale (OFS) to divest up to a two percent stake.
Vinod Nair, Head of Research at Geojit Investments, emphasized that the main indices remain range-bound, while midcaps are entering a stronger phase facilitated by recovering domestic inflows that counteract foreign institutional selling. He remarked that improving prospects for peace between the US and Iran are fostering expectations for an earnings and valuation reset, despite potential softness in Q1FY27.
Nair also pointed out that large-cap stocks are becoming appealing as they trade below their historical premiums, suggesting a potential revival if foreign investor selling subsides alongside improving geopolitical conditions in West Asia.
Market breadth was notably positive with 3,422 stocks trading on the NSE, where 1,772 advanced, 1,535 declined, and 115 remained unchanged. Approximately 125 stocks reached 52-week highs, while 42 touched 52-week lows. In the broader market, 129 stocks hit upper circuit limits, whereas 92 hit lower circuits.
Midcap & Smallcap Movers
Among midcaps, ATGL, Exide Industries, Swiggy, Tube Investments, and Suzlon Energy saw gains ranging from 6 to 14 percent, while MCX, Radico Khaitan, BSE, and Bharat Dynamics fell by 3 to 5 percent.
In the small-cap sector, Pine Labs, Netweb Technologies, IFCI, and Ola Electric Mobility gained 5 to 6 percent, while GE Shipping, Firstsource Solutions, and Brainbees Solutions (FirstCry) saw declines of 3 to 8 percent.
“Looking ahead, markets are likely to be influenced by global developments, crude oil prices, and monsoon progress,” stated Abhinav Tiwari, Research Analyst at Bonanza.
Ponmudi R, CEO of Enrich Money, underscored that investors are expected to focus on US-Iran negotiations, the sustainability of the ceasefire, and progress in reopening the Strait of Hormuz, given the potential implications for global markets, energy prices, and overall risk appetite.
In Asia, South Korea’s Kospi and Japan’s Nikkei 225 finished higher, while China’s SSE Composite and Hong Kong’s Hang Seng ended in the red. European markets traded in positive territory.
US Markets
US markets largely concluded higher on Tuesday. Foreign Institutional Investors (FIIs) sold equities worth ₹2,407.87 crore on Tuesday. Previously, the Sensex fell by 479.26 points, or 0.63 percent, closing at 76,009.70, while the Nifty dropped by 118 points, or 0.49 percent, settling at 23,913.70.
Published on May 27, 2026
