The Indian stock market ended mixed on Tuesday, with the Nifty index recovering from early losses to close near the day’s highs, while financial stocks, particularly IndusInd Bank, underperformed due to accounting-related concerns.
The Nifty 50 reversed from the support level around 22,300 and ended the session with a gain of 38 points at 22,498. The Sensex slipped 13 points, closing at 74,102. While the broader market showed some positive momentum, the Nifty Bank index plunged 363 points to 47,854, dragged down by a steep fall in IndusInd Bank shares.
IndusInd Bank, which saw its stock fall 27% on the day, suffered its biggest single-day drop. The bank’s market capitalisation was eroded by ₹20,000 crore due to mounting concerns over accounting practices, significantly impacting the Nifty Bank index. Other financial stocks, such as Axis Bank and HDFC Bank, also faced selling pressure, further contributing to the weakness in the sector. However, ICICI Bank offered some support to the Nifty Bank index, ending the session in positive territory.
On the other hand, mid-cap stocks performed well, with the Nifty Midcap index rising by 323 points to 48,763. Notable gains were seen in realty stocks, with Phoenix Mills, Macrotech Developers, DLF, and Oberoi Realty all gaining 4-7%. Brokerages’ positive notes on stocks like Tata Communications and Tube Investments led to 7-8% rises in those counters.
Oil marketing companies (OMCs) reversed losses from the previous session as crude oil prices steadied. Stocks of OMCs rose by 2-3%, contributing positively to the market. Meanwhile, MCX, the commodity exchange, saw a 4% rise from its lows, reflecting positive sentiment in the commodities market.
Max Financial Services gained 4% after the National Company Law Appellate Tribunal (NCLAT) approved the merger of Shriram Life Insurance and Shriram General Insurance with the holding company. Persistent Systems surged nearly 2% after CLSA upgraded its stock to ‘buy’, citing strong growth prospects.
Despite the recovery in the broader market, the advance-decline ratio favored declines with 1,332 stocks advancing, compared to 2,682 stocks declining. This reflects the overall cautious sentiment in the market amid sector-specific volatility.
