Indian Stocks End Lower Amid Monthly Derivatives Expiry

Indian Equity Indices End on a Weak Note Amid Renewed Geopolitical Tensions

The Indian equity indices ended on a weak note on May 26, driven by heightened volatility stemming from renewed geopolitical tensions in the Middle East and monthly F&O expiry.

The market opened on a weak note and remained volatile for most of the session, oscillating between gains and losses after reports of fresh U.S. military action dampened hopes of an early de-escalation in West Asia. However, intensified selling pressure in the final hour dragged the Nifty below the crucial 24,000 mark at close.

At close, the Sensex was down 479.26 points or 0.63 percent at 76,009.70, and the Nifty was down 118 points or 0.49 percent at 23,913.70.

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Broader indices outperformed the main indices, with the Nifty Midcap index rising 0.5%, while the Nifty Smallcap index advancing 0.35%.

The Indian rupee snapped its three-day winning run, ending 45 paise lower at 95.68 per US dollar compared with previous close of 95.23 per dollar.

The biggest Nifty losers were Apollo Hospitals, Bharti Airtel, TCS, Wipro, and Trent, while gainers were Adani Enterprises, Tata Motors Passenger Vehicles, Tech Mahindra, Nestle, and Eternal.

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Among sectors, except FMCG and metal, all other indices ended in the red with PSU Bank, private Bank, realty, and consumer durables down 0.5-1%.

Nearly 140 stocks touched their 52-week high on the BSE, including Adani Power, Adani Energy, Lloyds Metals, Granules India, Adani Enterprises, Schneider Infra, HFCL, Angel One, Vodafone Idea, Navin Fluorine, Polycab, among others.

In stock-specific action, Rail Vikas Nigam shares slipped 4% after the company reported a sharp 58.9 percent year-on-year decline in consolidated net profit. Shares of Man Industries (India) shed 1.4% after the company posting a 25.4 percent fall in consolidated Q4 profit.

Suprajit Engineering share price surged 6% on robust Q4 results, while shares of Container Corporation of India declined 7% on reporting 12% profit drop.

Awfis Space Solutions shares down 2% despite strong earnings performance. Balu Forge Industries share price advanced 7% after the company secured its maiden aerospace sector order from a U.S.-based firm. Meanwhile, Venus Pipes & Tubes shares rose 1% after the company commenced commercial operations at its fittings manufacturing facility.

Osho Krishan, Chief Manager - Technical & Derivative Research, Angle One, said that the Indian equity indices opened on a subdued note and witnessed a brief recovery during the initial hour of trade. However, weak participation at elevated levels on the expiry day, coupled with mounting geopolitical concerns, weighed on investor sentiment.

The benchmark indices gradually surrendered early gains, with the Nifty50 slipping into negative territory during the second half of the session. Persistent selling pressure thereafter dragged the index lower, leading it to close near the 23900 zone, down 0.49 percent for the day.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said that on the monthly expiry day, the benchmark index Nifty shrugged off its initial weakness and moved higher in early trade, hitting an intraday high of 24,090. However, profit booking at higher levels dragged the index lower towards 23,914, eventually ending the session 0.49% lower.

The outlook for May 27 remains uncertain, with investors advised to maintain a disciplined approach with prudent risk management amid prevailing volatility.