Nifty slips 0.48% as HDFC Bank, Reliance and Infosys weigh

Indian equities opened higher but failed to hold the gain. SBI Securities attributed the drift to broad-based selling, with HDFC Bank, Reliance Industries and Infosys identified as the three biggest contributors to the benchmark's decline.

HDFC Bank shares came under pressure after news of a US securities class-action lawsuit. A bank spokesperson said shareholder lawsuits are common in the US after stock-price declines; the available material does not provide a further assessment of the case. Reliance Industries and Infosys added to the index drag, while stronger action in selected industrial and pharmaceutical names limited the market's decline.

The sector rotation was selective rather than uniform. Infrastructure and industrial names drew support from order-related developments, including Bharat Electronics' additional Rs 730 crore of orders since August 10 and a reported transmission order for Adani Energy Solutions. Pharma was helped by a favourable Kalydeco patent ruling for Lupin, while weakness in metals reflected falls in Hindalco Industries, Hindustan Zinc and Steel Authority of India. Oil and energy stocks were weighed by Reliance Industries, and telecom and internet weakness added to the broader risk-off tone.

The day's leadership came from company-specific news in capital goods and infrastructure. Bharat Heavy Electricals was reported to have posted first-quarter profit of Rs 400 crore, against a loss-making opening quarter in the comparable recent period, with revenue up 40% year-on-year to Rs 7,700 crore and an order book of Rs 2.6 lakh crore. India Ratings and Research had upgraded its long-term bank-loan rating to IND AA, according to the report.

Bharat Electronics said it had secured additional orders worth Rs 730 crore since August 10, covering communications equipment, radar, avionics, cybersecurity and other systems. Adani Energy Solutions also advanced after a reported transmission order in Maharashtra; the new awards were said to have taken its transmission order book to Rs 85,000 crore. These developments helped explain why industrial shares outperformed even as the large-cap indices closed lower.

In pharmaceuticals, Bernstein maintained an outperform rating on Lupin after a patent ruling enabled the immediate launch of Ivacaftor and gave the company 180-day exclusivity as the first-to-file applicant. The available report estimated annual sales of $20 million to $30 million, but did not provide a market consensus estimate for the opportunity.

No fresh RBI, SEBI or Finance Ministry policy announcement, or new CPI, IIP, GST, trade or PMI release, was identified in the material for August 27. The latest RBI-linked economic assessment available in the research said domestic demand, manufacturing and services activity, liquidity and capital inflows remained supportive, while inflation and the trade deficit remained watch points.

The same available macro context put July CPI at 4.45% year-on-year and cited July manufacturing and services PMI readings of 53.9 and 53.1. These figures were not released as part of today's session and therefore did not provide a new trading catalyst. The market's policy sensitivity remained focused on inflation, the rupee and the RBI's room to support growth.

Global signals were mixed. US equities had ended modestly lower after inflation data, while Nvidia's stronger-than-expected results provided support to technology sentiment in parts of Asia. Reports differed on the direction of individual Asian markets, but the overall cue for India was not strong enough to overcome domestic selling in banks and other large-cap names.

Brent crude extended its recent decline as traders assessed the possibility that talks involving Iran and Qatar could ease risks around the Strait of Hormuz. For India, lower crude prices can reduce pressure on the import bill and inflation, although the rupee remained sensitive to dollar demand and expectations for US interest rates.

The US 10-year yield remained elevated ahead of the Federal Reserve chair's Jackson Hole speech, while the dollar stayed firm. That combination can keep foreign flows selective even when lower oil prices are supportive for India. The latest available cash-market data, for August 26, showed foreign institutional buying of Rs 502.63 crore and domestic institutional buying of Rs 6,425.16 crore; August 27 figures were not available in the supplied material.

Corporate news was uneven. Juniper Green Energy reported first-quarter profit of Rs 33.5 crore, up 54.2% year-on-year from Rs 21.7 crore, while revenue rose 81.2% year-on-year to Rs 291.2 crore from Rs 160.7 crore. The available material gives no analyst consensus against which to measure the result, but the share price still weakened during the session despite the reported growth.

Fino Payments Bank said the RBI had approved a further three-month extension for Ketan Merchant as interim CEO, effective August 27 or until a regular managing director and chief executive takes charge, whichever is earlier. Max Healthcare's subsidiary Alps Hospital received a DGGI show-cause-cum-demand notice alleging a GST demand of Rs 165.7 crore, including a penalty of Rs 110.47 crore; the material does not state the company's final liability.

Lupin faced a broker downgrade from Citi to sell, with the firm citing weaker momentum in the US base business and an insufficient pipeline to offset declines in high-margin products. The report said Citi expected US sales to decline from around $1.3 billion in FY26 to $975 million by FY29. That view contrasted with the more favourable patent-related assessment from Bernstein, illustrating the split in company-specific signals.

Primary-market activity remained a source of liquidity demand. Symbiotec Pharmalab's Rs 1,757 crore issue closes today, while Hy-Tech Engineers and Skyways Air Services were also scheduled to finish their three-day subscription windows. Kwick Forensic Solutions opened its issue today and is due to close on August 31.

The block-deal window saw about Rs 930 crore of Apollo Tyres shares change hands, representing 3.37% of its equity, at Rs 435 a share. Foseco India saw a Rs 679 crore transaction involving 11.51 lakh shares at Rs 5,897 apiece. The identities of the buyers and sellers were not immediately available.