Indian equity markets closed sharply lower on May 26 as renewed geopolitical tensions in the Middle East and volatility linked to the monthly futures and options expiry weighed heavily on investor sentiment.
Benchmark indices opened weak and traded in a volatile range throughout the session, swinging between gains and losses after reports of fresh U.S. military action reduced hopes for an early easing of tensions in West Asia. Selling pressure intensified during the final hour of trade, dragging the Nifty below the key 24,000 level at the close.
The Sensex fell 479.26 points, or 0.63%, to end at 76,009.70, while the Nifty declined 118 points, or 0.49%, to settle at 23,913.70.
Despite weakness in the benchmark indices, broader markets outperformed. The Nifty Midcap index rose 0.5%, while the Nifty Smallcap index gained 0.35%, indicating continued selective buying in smaller companies.
The Indian rupee also came under pressure, snapping a three-session winning streak. The currency weakened by 45 paise to close at 95.68 against the U.S. dollar compared with the previous close of 95.23.
Among Nifty stocks, Apollo Hospitals, Bharti Airtel, TCS, Wipro, and Trent emerged as the biggest losers. On the gaining side, Adani Enterprises, Tata Motors Passenger Vehicles, Tech Mahindra, Nestle, and Eternal posted gains.
Sector-wise, most indices ended in negative territory. PSU banks, private banks, real estate, and consumer durable stocks declined between 0.5% and 1%. Only FMCG and metal shares managed to close higher.
Market breadth remained relatively positive, with nearly 140 stocks hitting fresh 52-week highs on the BSE. Stocks reaching new highs included Adani Power, Adani Energy, Adani Enterprises, Lloyds Metals, Granules India, HFCL, Vodafone Idea, Polycab, Angel One, and Navin Fluorine.
In company-specific developments, Rail Vikas Nigam shares dropped 4% after the company reported a sharp 58.9% year-on-year decline in consolidated net profit. Shares of Man Industries (India) also slipped 1.4% following a 25.4% fall in fourth-quarter profit.
On the positive side, Suprajit Engineering surged 6% after posting strong quarterly results, while Balu Forge Industries gained 7% after securing its first aerospace-sector order from a U.S.-based company.
Meanwhile, Container Corporation of India shares fell 7% after reporting a 12% decline in profit, and Awfis Space Solutions declined 2% despite delivering strong earnings. Venus Pipes & Tubes edged 1% higher after commencing commercial operations at its new fittings manufacturing facility.
Analysts said investors are likely to remain cautious in the near term as geopolitical developments, crude oil prices, global interest-rate expectations, and domestic earnings continue to drive market sentiment.
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