NIFTY Almost Flat at 25,130.30: FinNifty Falls Nearly 1% As 17/20 Constituents Trade Lower

The NIFTY Financial Services Index (FINNIFTY) was trading in the red on June 1, reflecting weakness across banking, NBFC, and insurance stocks. The index slipped 223.70 points, or 0.88%, to 25,130.30, after opening higher at 25,428.70.

Selling pressure intensified through the session, pushing the index close to its intraday low of 25,104.45. Market sentiment remained largely negative, with 17 stocks declining and only 3 advancing, highlighting broad-based weakness across the financial sector.

The decline comes amid a broader phase of market consolidation, with investors booking profits after recent gains and remaining cautious ahead of key economic and sector-specific developments. 

Latest Developments in HDFC Bank, Shriram Finance, and Other FinNifty Stocks

HDFC Bank

HDFC Bank is the largest constituent of the Nifty Financial Services Index with an 18.30% weight. The stock has has come under pressure after reports suggested the lender had used "marketing expenses" to provide an additional payout to the Maharashtra State Road Development Corporation for large deposits. Investors are also tracking the bank's new cash deposit rules, which came into effect on June 1. 

Shriram Finance

Shriram Finance posted a strong set of numbers for Q4FY26, with profit surging more than 40% year-on-year. The company crossed the ₹3 lakh crore AUM milestone and rewarded shareholders with a final dividend of ₹6 per share. Improved asset quality and strong collection efficiencies have further strengthened investor confidence in the NBFC.

SBI Cards

SBI Cards has appointed Saurav Ghosh as its new Chief Operating Officer (COO) for a two-year term, effective June 21, 2026. He brings more than 24 years of experience across banking operations, credit management, human resources, and digital transformation. He will succeed Ashutosh Kumar Sharma, who will step down at the close of business on June 20, 2026, following the completion of his tenure. 

Bajaj Finance

Bajaj Finance delivered another strong quarter, reporting a 22% jump in net profit for Q4FY26. However, investors reacted cautiously as the company set aside higher provisions following changes in its loss estimation framework.

Read more: Key Trends for June 2026: RBI Policy, Monsoon Buzz, And Dividend Stocks To Watch.

Conclusion

The NIFTY Financial Services Index remained under pressure on June 1 as broad-based selling across banking, NBFC, and insurance stocks weighed on sentiment. With 17 out of 20 constituents trading in the red, investors appeared cautious 

Going forward, market participants with a demat account will closely monitor sector-specific developments, economic indicators, and interest rate expectations for cues on the financial sector's direction.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.