Stocks fall led by declines in banks, autos drag; FMCG bucks trend

The stock market closed lower on Wednesday, led by declines in banks, autos and midcaps, as risk-off sentiment weighed on broader markets.

The NSE Nifty 50 index fell 0.45% to 25,057, slipping below the 25,100 mark, while the S&P BSE Sensex dropped 386 points, or 0.47%, to 81,716. Market breadth remained weak with the NSE advance-decline ratio at 1:2, signalling broad-based selling pressure.

Banking heavyweights were among the top drags, with IndusInd Bank, Axis Bank and ICICI Bank losing more than 1% each, pulling the Nifty Bank index down 388 points to 55,122. Auto stocks also saw profit-booking, with Tata Motors sliding 3% to the bottom of the Nifty 50 as Jaguar Land Rover extended a production pause.

Midcap and smallcap indices underperformed, with the Nifty Midcap index dropping 572 points to 57,924. Real estate shares saw steep losses on demand concerns, with Godrej Properties leading the sector lower. Capital market stocks fell as the Securities and Exchange Board of India (SEBI) issued a consultation paper on expiry norms, dragging BSE Ltd. down 3%.

Adani Group companies saw profit booking with some names falling as much as 11%. Among individual movers, PB Fintech fell 4% on reports that the insurance regulator IRDAI has asked insurers to cut commissions, while Muthoot Finance hit a record high tracking gains in gold prices.

Minda Corporation jumped 9% after the auto components maker said it plans to increase revenues 3.5 times by 2030. Kaynes Technology rose 3% after appointing a new managing director.

FMCG stocks provided some support, with Hindustan Unilever and Tata Consumer Products among the top gainers as the sector turned positive in late trade. PSU banks also managed to close in the green.