PSU Banks Slip: Nifty PSU Bank Index Ends 0.5% Lower Amid Mixed Market Trends

Market Overview  
The Indian equity markets ended nearly flat, with the Sensex marginally lower at 85,533 points and the Nifty hovering around 25,750. While small-cap stocks led gains, PSU banks faced selling pressure, dragging the Nifty PSU Bank Index down by 0.5%. Analysts attributed the decline to profit-booking and cautious positioning ahead of year-end global data releases.  

Major takeaways  
• Nifty PSU Bank Index slipped 0.5%, reflecting weakness in state-owned lenders  
• Sensex closed marginally lower at 85,533 points, Nifty near 25,750  
• Small-cap stocks outperformed, highlighting investor preference for broader market opportunities  
• Sectoral divergence evident: PSU banks declined, while IT and private banks showed mixed trends  
• Market sentiment influenced by global cues and moderate foreign institutional investor activity  

Impact  
The dip in PSU banks highlights investor caution toward state-owned lenders amid regulatory and credit cycle concerns. However, resilience in small caps and selective private banks suggests investors are diversifying exposure, balancing risk with growth opportunities as 2025 draws to a close.  

Sources: The Hindu BusinessLine, Moneycontrol, MarketsMojo