The frontline equity indices traded with modest losses in the early afternoon trade, as investor sentiment remained cautious amid fading hopes of a swift resolution to the ongoing US'Iran conflict, which has reignited a surge in oil prices. Market volatility intensified due to the monthly Nifty 50 derivatives expiry today. The Nifty slipped below the 24,050 mark. Meanwhile, PSU bank stocks corrected after advancing in the past trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex dropped 336.36 points or 0.44% to 76,967.27. The Nifty 50 index fell 87.60 points or 0.36% to 24,005.60.

In the broader market, the BSE 150 MidCap Index shed 0.03% and the BSE 250 SmallCap Index added 0.07%.

The market breadth was negative. On the BSE, 1,922 shares rose and 2,091 shares fell. A total of 200 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.63% to 18.08.

In the commodities market, Brent crude for June 2026 settlement jumped $1.92 or 1.89% to $103.61 a barrel.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 5.33% to 18.66. The Nifty 24 April 2025 futures were trading at 24,082.60, at a premium of 12.15 points as compared with the spot at 24,070.45.

The Nifty option chain for the 26 May 2026 expiry showed a maximum call OI of 38.9 lakh contracts at the 25,000 strike price. Maximum put OI of 33.4 lakh contracts was seen at a 24,000 strike price.

Buzzing Index:

The Nifty PSU Bank index dropped 1.91% to 8,684.65. The index rallied 0.48% in the past trading session.

Union Bank of India (down 3.42%), Canara Bank (down 2.79%), Bank of India (down 2.18%), Punjab & Sind Bank (down 2.14%), Punjab National Bank (down 1.82%), Bank of Baroda (down 1.72%), Bank of Maharashtra (down 1.52%), State Bank of India (down 1.44%), Indian Bank (down 1.33%) and UCO Bank (down 1.05%) declined.

Stocks in Spotlight:

City Union Bank advanced 2.73% after the bank's standalone net profit jumped 24.9% to Rs 359.56 crore on 20.3% increase in total income to Rs 2146.09 crore in Q4 FY26over Q4 FY25.

Bondada Engineering dropped 4.93%. The company's consolidated net profit rose 13.3% to Rs 62.88 crore in Q4 FY26 as against Rs 55.51 crore in Q4 FY25. Revenue from operations jumped 27.9% year on year (YoY) to Rs 913.85 crore in Q4 FY26.

Adani Total Gas added 1.56% after the company reported 4.3% rise in standalone net profit to Rs 155.84 crore on 15.9% increase in revenue from operations (exlcuding excise duty) to Rs 1,548.58 crore in Q4 FY26 over Q4 FY25.