Sensex Slips 172 Points, Nifty Falls Below 24,250; Metals Gain, Banks Weigh

Indian equity markets ended lower on Monday, August 24, as weakness in banking and financial stocks offset strong buying in metal shares.

The benchmarks opened higher but struggled to sustain gains amid volatile trading and eventually closed in the red. The BSE Sensex settled at 77,369.11, declining 171.72 points, or 0.22%. It opened at 77,629.56 and moved between 77,789.40 and 77,201.66 during the session.

The NSE Nifty finished at 24,219.05, down 33 points, or 0.14%. The index started at 24,285.05 and hit an intraday high of 24,313 before slipping to a low of 24,144.30.

Despite the decline in the headline indices, the broader market was comparatively steady, with several mid-cap indices managing to post gains.

METALS LEAD THE RALLY

Metal stocks were the standout performers during the session. The Nifty Metal index advanced 1.59%, supported by strong gains across major counters.

Tata Steel was among the top performers in the Sensex pack, rising 1.86%, while Hindalco Industries also ended with notable gains.

Information technology stocks provided additional support. The Nifty IT index climbed 0.21%, with HCLTech advancing 1.30% and Infosys gaining 0.89%.

Sun Pharma, Hindustan Unilever, HDFC Bank and Maruti Suzuki also finished marginally higher.

BANKING STOCKS DRAG

Banking and financial stocks remained under pressure throughout the session, limiting the benchmarks’ ability to recover.

The Nifty Bank declined 0.41%, while the Nifty Financial Services index slipped 0.39%. The Nifty PSU Bank index was among the biggest sectoral losers, falling 0.93%. The Nifty Private Bank index also declined 0.32%.

Among Sensex constituents, Bajaj Finance fell 1.26%, BEL dropped 1.27%, Bajaj Finserv declined 1.22%, Axis Bank lost 0.85% and State Bank of India slipped 0.71%.

HDFC Bank was an exception, edging up 0.14%.

REALTY STOCKS HOLD FIRM

Realty shares also attracted buying interest. The Nifty Realty index gained 0.60%, while the Nifty REITs & Realty index advanced 0.50%.

The Nifty Oil & Gas index posted a smaller gain of 0.13%. In contrast, the Nifty Cement index declined 0.75% and the Nifty Media index fell 0.58%.

MID-CAPS OUTPERFORM

The broader market displayed a mixed trend. The Nifty Midcap 100 gained 0.13%, while Nifty Midcap Select rose 0.15% and Nifty Midcap 50 added 0.06%.

Small-cap stocks faced greater pressure, with the Nifty Smallcap 100 falling 0.26% and the Nifty Smallcap 50 declining 0.35%.

The India VIX rose 4.51% to 11.70, pointing to increased near-term volatility, although the gauge remained at relatively subdued levels.

GEOPOLITICAL CONCERNS KEEP INVESTORS CAUTIOUS

The session reflected sectoral rotation rather than widespread selling. Investors shifted towards metals and select IT stocks while reducing exposure to banks and financial companies.

Vinod Nair, Head of Research at Geojit Investments Limited, said market sentiment remained cautious as investors awaited fresh US sanctions on Iran. He noted that Brent crude had eased on profit-taking but remained above $90 a barrel amid concerns over Iranian supply and tensions around the Strait of Hormuz.

According to Nair, the recent hawkish stance from the Reserve Bank of India and rising domestic bond yields also weighed on risk appetite. Large-cap stocks underperformed broader markets, while metals benefited from firm commodity prices.

PSU banks faced particular pressure as higher sovereign bond yields contributed to mark-to-market losses.

With the Sensex closing below 77,500 and the Nifty below 24,250, investors will now track whether the benchmarks can reclaim these levels in the next session or face another round of selling.