Indian shares dip as financials drag; HDB Financial gains 13.6% in debut trade

Indian shares edged lower on Wednesday as financials retreated from recent highs, overshadowing optimism over a potential India–U.S. trade deal, while HDB Financial Services, the year’s largest IPO, surged on debut.

The Nifty 50 fell 0.35% to 25,453.40 and the Sensex slipped 0.34% to 83,409.69.

President Donald Trump said on Tuesday the U.S. was close to finalising a trade agreement with India, which could help the country avoid a 26% reciprocal tariff announced in April and paused until July 9.

“Investors aren’t buying into Trump’s sound bites anymore. Indecision will prevail in markets until there’s a deal signed, sealed, and delivered,” said Sanjeev Hota, vice president and head of research of wealth management at Mirae Asset Sharekhan.

“Besides, if the U.S. fumbles on broader trade negotiations with other key trading partners, it could ripple through inflation, rates, and global risk sentiment,” Hota added.

Nine of the 13 major sectors declined, with index heavyweights HDFC Bank and Reliance Industries losing 1.3% and 0.6%, respectively.

HDB Financial Services debuted at a premium of about 13% to its issue price and closed its maiden session 13.6% higher.

India’s equity benchmarks ease as financials retreat from record highs

The broader mid- and small-caps fell 0.4% and 0.1%, respectively.

High-weight financials fell 1%, retreating for a third straight session from record highs hit on Friday, while banks dropped 0.8%.

Private lender IndusInd Bank and credit card services provider SBI Card fell 2.4% and 2%, respectively, after Goldman Sachs’ downgrades.

Realty index dipped 1.4%, taking its losses over the last five sessions to about 5%.

Consumer companies Colgate Palmolive India and Dabur rose following an NDTV report that the government may scrap the 12% GST slab and reclassify items like toothpaste into the lower 5% bracket.

Meanwhile, cigarette makers ITC and Godfrey Phillips declined on concerns that luxury and sin goods could face higher GST rates under the proposed restructuring.