Nifty slips below 25,500 as financials drag, PSU Bank index snaps 6-day winning streak

The Nifty 50 ended lower on Wednesday, falling below the 25,500 mark, and snapping its recent upward momentum, while midcap and PSU bank indices also posted losses following multiple days of gains.

The BSE Sensex shed 288 points, or 0.34%, to close at 83,410, while the Nifty 50 dropped 88 points, or 0.35%, to settle at 25,453. The Nifty Bank index declined 460 points, or 0.80%, to 56,999, reflecting weakness in major private and public sector lenders.

Vinod Nair, Head of Research, Geojit Investments Limited, said, "Mixed global cues, particularly ahead of the impending tariff deadline, are driving investor caution. Market attention is gradually shifting to crucial Q1 earnings, which have high expectations. Underlying trends such as robust macroeconomic fundamentals and increased government expenditure continue to support market resilience. However, being at the breach level of the recent rally, a cautiousness is expected to continue in the near term."

The Nifty PSU Bank index snapped its six-day winning streak, falling nearly 1%, while the Nifty Midcap 100 index dropped 83 points to 59,667, ending an eight-session rally and underperforming the broader benchmarks. The overall market breadth remained weak, with the advance-decline ratio at 1:2, indicating broad-based selling pressure across sectors.

Financial stocks remained under pressure throughout the session. RBL Bank declined more than 4% after the company denied reports suggesting New Development Bank was acquiring a minority stake. Dreamfolks Services fell nearly 5% after the company said airport operators were placing pricing pressure on its clients, raising concerns about future margins.

In contrast, metal stocks outperformed, driven by positive demand-supply cues from China. Tata Steel emerged as the top gainer on the Nifty, rising on hopes of improved pricing in the global steel market.

Tata Communications surged nearly 5% after Macquarie initiated coverage with a "Buy" call, citing strong long-term potential in digital infrastructure services. HDB Financial Services, the NBFC arm of HDFC Bank, rose nearly 14% in its stock market debut, signalling investor optimism toward the sector despite weakness in broader financial names.

Asian Paints reversed early losses to end over 2% higher, even as the Competition Commission of India (CCI) initiated a probe into potential antitrust violations.
Sigachi Industries continued its sharp decline, falling more than 7% after the company confirmed the death toll from a fire at its Telangana unit had risen to 44.