The Nifty traded below the 24,250 mark. Financial Services shares extended losses for two consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex declined 785.70 points or 1% to 77,730.79. The Nifty 50 index slumped 153.30 points or 0.64% to 24,244.80.

In the broader market, the BSE 150 MidCap Index fell 0.28% and the BSE 250 SmallCap Index shed 0.22%.

The market breadth was positive. On the BSE, 1,768 shares rose and 2,296 shares fell. A total of 196 shares were unchanged.

Economy:

The HSBC Flash India PMI Composite Output Index was rose to 58.3 in April from the final reading of 57.0 in March. The latest reading signalled a sharp expansion in overall business activity, remaining well above its long-run average.

HSBC Flash India Services PMI Business Activity Index stood at 57.9 in April 2026 compared with 57.5 in March 2026.

Meanwhile, HSBC Flash India Manufacturing PMI Output Index climbed to 59.1 in April 2026 compared with 55.7 in March 2026. Overall manufacturing business conditions also strengthened, with the HSBC Flash India Manufacturing PMI rising to 55.9 in April from 53.9 in the previous month.

The foreign broker has downgraded Indian equities to 'underweight' from 'neutral.' The move comes amid rising crude oil prices driven by the Middle East conflict. Brent crude is up over 40% and trading above $100 per barrel. Higher oil prices are expected to raise inflation and slow growth. It said earnings forecasts may be revised lower. A 20% rise in crude could cut earnings growth by 1.5%.

The brokerage also flagged risks of rupee depreciation and continued foreign investor outflows. Concerns around IT sector demand remain. While domestic inflows are supportive, valuations may look expensive if earnings are downgraded. The brokerage said selective opportunities remain, but the broader outlook has weakened.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.23% to 18.56. The Nifty 28 April 2026 futures were trading at 24,157 at a discount of 87.8 points as compared with the spot at 24,244.80.

The Nifty option chain for the 28 April 2026 expiry showed a maximum call OI of 111.8 lakh contracts at the 24,500 strike price. A maximum put OI of 86.9 lakh contracts was seen at the 23,000 strike price.

Buzzing Index:

The Nifty Financial Services index fell 1.25% to 26,291.45. The index declined 2.08% in the two consecutive trading session.

SBI Life Insurance Company (down 3.8%), Bajaj Finance (down 2.52%), Bajaj Finserv (down 2.44%), Shriram Finance (down 2.09%), Max Financial Services (down 1.81%), Kotak Mahindra Bank (down 1.79%), HDFC Bank (down 1.68%), LIC Housing Finance (down 1.53%), Cholamandalam Investment & Finance Company (down 1.47%) and ICICI Bank (down 1.34%) declined.

Stocks in Spotlight:

Patel Engineering gained 1.23% after the company was declared the lowest bidder (L1) for a Rs 1,593.08 crore contract for the Lower Arun Hydropower Project in Nepal.

Alembic Pharmaceuticals rose 0.74%. The company announced the incorporation of a new subsidiary in the Philippines, aimed at expanding its international presence.