Sensex, Nifty slip for second day as liquidity drains amid block deals, IPO rush

Indian benchmark indices ended lower for the second consecutive session

Indian benchmark indices ended lower for the second consecutive session on May 28, as upbeat global cues were overshadowed by fund outflows triggered by large block deals and heightened activity in the primary market. Consumer stocks led the drag on the benchmarks, even as volatility cooled with India VIX continuing to ease.

The Sensex slipped 239.31 points, or 0.29 percent, to close at 81,312.32, while the Nifty fell 73.75 points, or 0.30 percent, to settle at 24,752.45. Market breadth was slightly positive, with 1,962 stocks advancing, 1,831 declining, and 151 remaining unchanged.

The broader market put up a mixed show. While the Midcap index dipped into the red, the Smallcap index outperformed frontline indices, buoyed by stronger earnings visibility across select segments.

Among sectors, Nifty PSU Bank stood out with gains in SBI, Bank of Baroda, and PNB, while Nifty FMCG lagged due to a steep fall in ITC. Nearly 385 million ITC shares—around 3 percent of its equity—changed hands on the NSE in a major block deal. The transaction reduced British American Tobacco’s stake below the 25 percent threshold, signaling a shift in its boardroom influence.

On the IPO front, Belrise Industries made a strong debut, listing at an 11 percent premium over its issue price of Rs 90 per share. Meanwhile, the Leela Hotels IPO saw strong interest, closing fully subscribed on Day 3, with demand led by QIBs and retail investors.

Looking ahead, analysts at ICICI Securities remain bullish on the Nifty’s trajectory. “We expect the index to form a strong base in the 24,200–25,100 range, setting the stage for the next leg higher toward 25,500. Any dip from here should be seen as a buying opportunity,” the brokerage said.

Mohit Khanna, fund manager at Purnartha PMS, flagged rising US and Japanese bond yields as key headwinds, noting that their portfolio is holding 12–13% in cash to navigate near-term volatility.