Nifty falls 0.48% as HDFC Bank and metals weigh

Indian equities closed lower for a second session, with selling concentrated in heavyweight banks, metals, oil and energy, and selected technology and consumer names. HDFC Bank was among the main drags after reports of a securities lawsuit involving the bank's senior management and alleged payments to the Maharashtra State Road Development Corporation. The allegations have not been established in the available material.

Hindalco Industries, Mahindra & Mahindra, Reliance Industries and Bharti Airtel were also among the reported laggards. Traders attributed the broader weakness to profit-taking, monthly derivatives-expiry volatility and continued geopolitical uncertainty, even as some defensive and domestic-demand-oriented pockets attracted buying.

The sector pattern pointed to selectivity rather than a broad risk-off move. Metals underperformed as investors remained cautious about global growth and commodity-market conditions. Oil and energy shares lagged amid uncertainty over the path of crude prices and the Middle East outlook.

Pharma and health-care shares held up as market participants sought relatively defensive exposure. Consumer durables and infrastructure and industrial names also found support, with analysts linking the interest to domestic demand and their lower direct exposure to commodity-price volatility. These are market interpretations, not evidence of a single trading trigger.

The Reserve Bank of India told banks they could access its dollar-rupee swap facility for FCNR(B) deposits outside the regular weekly window for transactions above $100 million. Transactions below that threshold remain limited to the designated weekly window. The change gives banks more flexibility to handle large inflows before the subsidised deposit scheme ends.

SEBI Chairman Tuhin Kanta Pandey said the regulator was not looking to change the newly introduced closing auction session mechanism at present. The comment matters because the session saw expiry-related volatility and renewed attention to the difference between prices around the start of the closing process and the eventual closing price.

No release of CPI, IIP, GST, trade or PMI data was identified in the available material for the morning report. The next market focus includes the scheduled address by US Federal Reserve Chair Kevin Warsh at Jackson Hole.

Wall Street provided a more supportive backdrop after Nvidia's revenue forecast reinforced expectations for continued artificial-intelligence infrastructure spending. The Nasdaq gained more than the broader US benchmarks, while Asian markets were mixed on Friday as traders awaited Warsh's policy remarks. The contrast between stronger technology sentiment abroad and domestic selling in HDFC Bank and metals underlined the market's stock-specific character.

The US 10-year Treasury yield was near 4.676% in the latest cited reading, while the dollar index was near 99.14. Brent crude was quoted near $89.41 a barrel in early Friday trade. For India, the combination of a firmer dollar and elevated oil prices remains relevant to the rupee, imported inflation and the earnings outlook for energy-intensive sectors, although the available material does not establish a direct causal link to the session's close.

Foreign institutional investors were provisional net sellers of Rs 298.26 crore in Indian equities on August 27, while domestic institutional investors were net buyers of Rs 4,977.17 crore. The domestic flows cushioned the foreign selling, but did not prevent declines in several large-cap index constituents.

The main corporate developments were concentrated in defence electronics, renewable energy and financial services. Bharat Electronics said it had secured additional orders worth Rs 730 crore since August 10, covering communication equipment, radar, avionics, tank subsystems, cybersecurity and other products. The disclosure gives the stock a company-specific order-flow catalyst against a weaker industrial tape.

Juniper Green Energy's June-quarter profit rose 54.2% year-on-year to Rs 33.5 crore, while revenue increased 81.2% to Rs 291.2 crore. The available material does not provide a consensus estimate, so the result can be compared only with the year-ago quarter, not with market expectations. Fino Payments Bank said the RBI approved a further three-month extension for interim CEO Ketan Merchant, effective August 27 or until a regular managing director and chief executive takes charge.

Star Cement's June-quarter profit fell 25% year-on-year to Rs 74 crore despite 3% revenue growth to Rs 943 crore and 4% volume growth. The company attributed the pressure in the available report to higher fuel and logistics costs; EBITDA fell 12% to Rs 203 crore. Hero MotoCorp's board approved a Rs 1,758 crore investment to raise its stake in Ather Energy from 29.88% to approximately 32.8%.

The primary-market calendar remains active. ESDS Software Solutions' public issue opens on August 28 after the company raised Rs 215.99 crore from anchor investors. Symbiotec Pharmalab moves to allotment after closing its issue, while Annu Projects enters its final day of subscription.

In secondary transactions, Alpha Wave Ventures is expected to offer a 1.2% Lenskart stake at Rs 630 a share, with the proposed sale estimated at about Rs 1,313 crore. Foseco India also saw a large exit by Morgan Terrassen and Morganite Crucible, which together sold 15.26% of the company through bulk deals. The transactions may keep attention on supply overhang and price discovery in the affected shares.