Markets End Flat As HDFC Bank Drags; Metals Rally On Aluminium Price Surge
Indian equity benchmarks ended little changed on Wednesday as losses in heavyweight banking stocks offset gains in metal counters, while investors remained cautious amid uncertainty surrounding the fragile ceasefire between the United States and Iran.The NSE Nifty 50 slipped 0.03 per cent to close at 23,907.15, while the BSE Sensex declined 0.19 per cent to 75,867.8. The two benchmarks have fallen around 5 per cent and 6.7 per cent, respectively, since the outbreak of the Iran conflict in February.
Market sentiment remained subdued after Iran accused the United States of violating the ceasefire by carrying out strikes near the strategically important Strait of Hormuz, raising concerns that efforts to end the three-month-long conflict could face fresh setbacks.
“Main indices remain range‑bound, while midcaps have entered a new zone supported by recovering domestic inflows that are offsetting FII selling. This shift reflects expectations of an earnings and valuation reset as prospects for US–Iran peace improve. Although Q1FY27 may be soft, India’s strong macro fundamentals suggest that one weak quarter is unlikely to alter the broader outlook,” said Vinod Nair, Head of Research, Geojit Investments.
In the near term, large caps are becoming attractive as they trade below their long‑term premium, and a revival in this segment is likely as FII selling eases based on developments in West Asia, he added.
Shares of HDFC Bank, the largest constituent of both benchmark indices, fell 2.6 per cent after a media report alleged that the lender paid Rs 45 crore to a state road development corporation to attract large deposits. The bank strongly denied any wrongdoing and rejected suggestions of misconduct.
Metal stocks emerged as the standout performers, with the Nifty Metal index advancing 1.7 per cent. Hindalco Industries and National Aluminium Company rose 4.2 per cent and 4.1 per cent, respectively, as aluminium prices climbed to their highest level in more than four years amid supply concerns.
Despite the flat close for headline indices, market breadth remained positive. Ten of the 16 major sectoral indices ended higher, while broader markets outperformed. The Nifty Midcap index gained 0.4 per cent and the Nifty Smallcap index added 0.2 per cent.
Global sentiment remained supportive, with MSCI’s Asia Emerging Markets Index rising 1.5 per cent to a record high, driven by an artificial intelligence-led rally in South Korean and Taiwanese equities.
Taiwan also overtook India to become the world’s fifth-largest equity market by capitalisation, supported by a sharp rally in Taiwan Semiconductor Manufacturing Company (TSMC).
Foreign portfolio investors have continued to pare exposure to Indian equities, selling shares worth USD 24.3 billion so far in 2026, exceeding the record annual outflows seen last year. In contrast, foreign investors have purchased approximately USD 25 billion worth of Taiwanese equities during the same period.
The NSE and BSE will remain closed on Thursday for a local holiday.
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