Sensex falls 600 pts from day's high, Nifty below 24,750 as bank, FMCG stocks drag

ata Consumer Products, Jio Financial Services, Bharat Electronics, Bajaj Finserv, and Bajaj Finance were the major laggards on the index.

Benchmark indices Nifty and Sensex gave up early gains to slip into the red on May 29, as selling pressure in banking and FMCG stocks weighed on sentiment. Even the IT pack, which led the charge in morning trade with over 1 percent gains, lost steam to trade with only modest upside.

The muted movement comes despite positive global cues, with the most notable being that a US trade court has blocked President Donald Trump’s sweeping tariff agenda. The Indian markets have been falling for the past two trading sessions.

At 11:35 am, the Sensex was down 32.18 points or 0.04 percent at 81,280.14, and the Nifty was down 19.45 points or 0.08 percent at 24,733.00. About 1620 shares advanced, 1679 shares declined, and 119 shares remained unchanged.

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"A lingering concern over India-US trade relations following the end of the 90-day pause period continues to pose an external risk. On the domestic front, key economic indicators such as an improved monsoon forecast, a benign inflation outlook, and expectations of a stronger Q4GDP may help cushion downside risks. However, earnings visibility needs to improve in tandem with the macros, which is vital for stability in the direction," says Vinod Nair of Geojit Investments Limited.

Sectoral trends on the NSE were mixed on May 29, even as market volatility continued to ease with the India VIX falling 6.60 percent to 16.83. Gains were seen in Nifty Metal, which rose 0.62 percent, followed by IT, up 0.56 percent, and Pharma, which added 0.34 percent. Realty, Media, Auto, and Energy indices also posted modest gains. On the flip side, Nifty PSU Bank declined 0.61 percent, FMCG fell 0.53 percent, and Bank and Private Bank indices dropped 0.41 percent and 0.26 percent, respectively. Consumer Durables and Oil & Gas saw marginal losses, while Infra remained nearly flat.

The Nifty Midcap 100 slipped 0.01 percent, ending a four-day winning streak, but the Smallcap 100 extended its run to five days, rising 0.45 percent.

Shares of Cummins India gained as much as 5 percent to Rs 3,115 in morning trade on May 29 after the company reported a 7.2 percent year-on-year decline in net profit at Rs 521.37 crore for the March quarter, even as revenue from operations rose 6.1 percent to Rs 2,457 crore, driven by a steady uptick in export demand. In the same period last year, the power solutions firm had posted a profit of Rs 561.52 crore on revenue of Rs 2,316.15 crore.

Indian Railway Catering and Tourism Corporation (IRCTC) stock gained 1 percent after it reported a strong set of numbers for the March quarter, with net profit rising 26 percent year-on-year to Rs 358 crore, helped in part by a one-time gain of Rs 45.68 crore. In the year-ago period, the company had posted a profit of Rs 284 crore.

Shares of private lender IndusInd Bank Ltd edged over a percent higher even as the markets regulator Securities and Exchange Board of India (SEBI) barred former IndusInd Bank MD&CEO, Sumant Kathpalia, former Deputy CEO Arun Khurana, and three other former senior officials of the bank for alleged insider trading.

"Nifty continues to oscillate between the matching lows around 24,450 and the matching highs near 25,100. This range remains crucial, and any breakout beyond it could reignite momentum. However, testing these levels on the expiry day itself appears unlikely and breaking it would be a tough ask," Rajessh Bhosale of Angel One said. "In the near term, immediate support is seen around 24,600, which also aligns with the 20DEMA. On the upside, the psychological 25,000 mark acts as immediate resistance. These two levels are expected to be pivotal during the expiry session," he added.

Eternal, IndusInd Bank, Sun Pharma, Trent, and Tata Steel were the top gainers on the Nifty. Tata Consumer Products, Jio Financial Services, Bharat Electronics, Bajaj Finserv, and Bajaj Finance were the major laggards on the index.