Benchmarks erase early gains amid volatility; Nifty dips below 24,200

The headline equity indices erased early gains to end marginally lower in a volatile session on Thursday. Tracking positive global cues, the markets opened higher on optimism around a potential US-Iran peace deal and held gains in the first half. However, selling pressure in the latter half wiped out intraday advances, pulling the Nifty 50 below the 24,200 mark. Private banks and auto stocks led the decline, while metal and IT shares provided some support. Volatility remained elevated due to the weekly expiry of Sensex derivatives and the ongoing Q4 earnings season, with investors closely monitoring signs of de-escalation between the United States and Iran.

The S&P BSE Sensex declined 122.56 points or 0.16% to 77,988.68. The Nifty 50 index fell 34.55 points or 0.14% to 24,196.75.

HDFC Bank (down 1.75%), Mahindra & Mahindra (down 0.99%) and Bharti Airtel (down 0.82%) dragged the indices lower today.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index jumped 0.52% and the BSE 250 SmallCap Index rose 0.99%.

The market breadth was strong. On the BSE, 2,808 shares rose and 1,539 shares fell. A total of 157 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 3.12% to 18.09.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.25% to 6.882 compared with the previous session close of 6.865.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 93.2000 compared with its close of 93.3375 during the previous trading session.

MCX Gold futures for the 5 June 2026 settlement rose 0.12% to Rs 154,179.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.20% to 98.05.

The United States 10-year bond yield shed 0.02% to 4.277.

In the commodities market, Brent crude for June 2026 settlement jumped $1.46 or 1.54% to $96.39 a barrel.

Global Markets:

European indices advanced on Thursday as investors assessed stronger-than-expected UK economic data and revised Eurozone inflation figures for March.

Inflation in the Euro Area was revised higher to 2.6% in March 2026 from an earlier estimate of 2.5% and 1.9% in February, largely driven by a sharp increase in energy prices. Core inflation eased to 2.3%, with price pressures moderating across services, goods, and food. On a monthly basis, consumer prices rose 1.3%, marking the fastest increase since October 2022, with broad-based inflation seen across major economies including Germany, France, Italy, and Spain.

In the UK, the economy expanded in February, according to data released by the Office for National Statistics. The growth followed a 0.1% expansion in January and was supported by broad-based gains. Services activity rose 0.5% month-on-month, industrial production increased 0.5%, and construction output climbed 1.0% despite adverse weather conditions.

Asian indices ended mostly higher, with Japan's Nikkei 225 hitting a record high, tracking overnight gains on Wall Street amid optimism around a potential US-Iran agreement.

US President Donald Trump said in a media interview aired Wednesday that the Iran conflict was 'very close to over,' adding that Tehran was keen to reach a deal. A White House official also indicated that a second round of negotiations between Washington and Iran is under discussion, although no formal schedule has been announced.

China's economy accelerated in the first quarter, supported by strong export growth that helped offset weak domestic demand, even as the outlook remains clouded by energy price risks linked to geopolitical tensions. Gross domestic product grew 5% in the January-March period, up from 4.5% in the previous quarter, according to official data.

On Wall Street, the S&P 500 and Nasdaq Composite closed at fresh record highs on Wednesday, extending recent gains as investor sentiment improved on hopes of easing geopolitical tensions. The S&P 500 rose 0.80% to 7,022.95, while the Nasdaq Composite advanced 1.59% to 24,016.02. The Dow Jones Industrial Average, however, slipped 0.15% to 48,463.72.

Meanwhile, the US Federal Reserve's Beige Book indicated that the economy grew at a slight to modest pace over the past six weeks. It highlighted the Iran conflict as a major source of uncertainty for businesses, even as price growth remained moderate despite rising energy costs. Consumers continued to face pressure from higher prices, with more households seeking financial assistance.

Stocks in Spotlight:

Wipro rose 0.19%. The IT major announced its Q4FY26 results today. Its net income for the quarter was at Rs 3500 crore, an increase of 12.3% QoQ and decrease of 1.9% YoY. Gross revenue at Rs 24240 crore, an increase of 2.9% QoQ and 7.7% YoY. IT services segment revenue was at $2,651.0 million, increase of 0.6% QoQ and 2.1% YoY.

Wipro expects revenue from IT Services business segment to be in the range of $2,597 million to $2,651 million. This translates to sequential guidance of (-)2.0% to 0% in constant currency terms.

Meanwhile, the company's board approved share buyback of up to 60 crore shares (5.7% equity) at Rs 250 per share via tender offer, aggregating up to Rs 15,000 crore, subject to shareholder approval through postal ballot.

HDFC Asset Management Company (AMC) shed 0.06%. The company reported a 2.42% decline in standalone net profit to Rs 623.29 crore despite a 16.56% jump in revenue from operations to Rs 1,050.48 crore in Q4 FY26 over Q4 FY25.

ICICI Lombard General Insurance Company rose 1.38% after the company reported a 7.25% increase in standalone net profit to Rs 546.56 crore on a 13.12% jump in total income to Rs 6,618.76 crore in Q4 FY26 over Q4 FY25.

HDB Financial Services surged 6.54% after the company's standalone net profit rose 41.4% YoY and 16.6% QoQ to Rs 751 crore in Q4 FY26 from Rs 531 crore in Q4 FY25 and Rs 644 crore in Q3 FY26. Net income came in at Rs 2,769 crore, up 19.8% YoY and 4% QoQ. Profit before tax stood at Rs 991 crore in Q4 FY26, up 44.3% YoY and 17.6% QoQ.

SG Finserve rallied 11.51% after the company reported a robust performance for Q4 FY26, with standalone net profit rising 78% year-on-year to Rs 42.3 crore in Q4 FY26, compared with Rs 23.8 crore in the same quarter last year. On a sequential basis, net profit increased 30% from Rs 32.5 crore reported in Q3 FY26.

Total income surged 95% YoY to Rs 105.7 crore in the quarter ended 31 March 2026, while it grew 23% quarter-on-quarter from Rs 85.8 crore.

Lotus Chocolate Company fell 4.11% after reporting a standalone net loss of Rs 4.47 crore in Q4 FY26, compared with a net profit of Rs 1.42 crore in the same period last year. Revenue from operations declined 19.47% year-on-year to Rs 126.78 crore during the quarter.

GTPL Hathway tanked 4.90% after the company reported a consolidated net loss of Rs 15.01 crore in Q4 FY26, compared with a net profit of Rs 10.64 crore posted in Q4 FY25. Revenue from operations rose 3.68% year-on-year to Rs 923.84 crore in the quarter ended 31 March 2026.

Tejas Networks tumbled 4.03% after the company reported a net loss of Rs 211 crore in Q4 FY26 as against a net loss of Rs 72 crore in Q4 FY25. Net revenue fell 83% to Rs 333 crore in the March quarter from Rs 1,907 crore recorded in the same period last year.

GMR Airports declined 2.50% after the company reported subdued passenger traffic growth for Q4 FY26, weighed down by a mix of operational and geopolitical challenges.

The airport operator handled around 32 million passengers during the January-March quarter, registering a modest 0.9% YoY growth. Domestic traffic rose 1.6% YoY to 24.1 million passengers, while international traffic fell 1.3% YoY to 7.7 million, pointing to an uneven recovery across segments.

Enviro Infra Engineers (EIEL) rose 1.59% after the company announced a strong inflow of new orders worth over Rs 2,240 crore since March 2026, significantly strengthening its order book and revenue visibility for the next 15'24 months.

John Cockerill India jumped 3.66% after the company received a contract from JSW Steel Coated Products to design a Continuous Galvanizing Line (CGL#3) at the Khopoli plant. The scope of work includes design, manufacturing, supply, and supervision of erection & commissioning of continuous galvanizing line (CGL#3). The contract is valued at Rs 300 crore.

Amir Chand Jagdish Kumar (Exports) added 1.44% after the company's consolidated net profit surged 93.96% to Rs 34.68 crore on 15.03% increase in revenue from operations to Rs 571.21 crore in Q3 FY26 over Q3 FY25.