FINNIFTY Slips Below 25,350 on May 18, 2026; Muthoot Finance Crashes Over 7%

The NIFTY Financial Services Index (FINNIFTY) traded in negative territory on Monday, reflecting weakness across non-banking financial companies (NBFCs) and insurance stocks despite support from select banking heavyweights.

As of 2:37 PM IST on May 18, 2026, FINNIFTY stood at 25,302.40, down 41.45 points or 0.16%. The decline came amid broader market caution triggered by rising crude oil prices and lingering global macroeconomic concerns.

Top Gainers in FINNIFTY

Top Losers In FINNIFTY

Latest Developments

• Kotak Mahindra Bank: It reported steady Q4 FY26 earnings, with net profit rising nearly 10% year-on-year to ₹5,423.15 crore. Growth was supported by its digital banking platform, Kotak 811, and strong wealth management performance. Investors continue to track the bank’s digital expansion and stable retail growth.
• HDFC Bank: It witnessed strong derivatives activity ahead of the May expiry, with increased call option positions indicating bullish short-term sentiment. The bank also revised its large defaulters filing to TransUnion CIBIL, reducing reported dues after correcting insolvency-related entries.
• Muthoot Finance: Despite recent selling pressure in the stock, Muthoot Finance’s long-term outlook remains positive. Supported by rising gold prices and strong rural demand, the company’s gold loan AUM crossed the ₹1 lakh crore milestone earlier this quarter.
• LIC Housing Finance: NBFC stocks and housing finance stocks faced selling pressure as institutional investors shifted funds toward safer large-cap banking stocks. The sector remains sensitive to global macroeconomic uncertainty, interest rate expectations, and changing market sentiment.

Read more: NTPC Share Price in Focus as the Group’s Energy Production Capacity Rises To 90,668 MW.

Conclusion

FINNIFTY remained under pressure during the session as weakness in NBFCs and housing finance companies outweighed gains in frontline banking stocks. Although heavyweight lenders helped cushion losses, investors remained cautious amid volatile global cues and rising crude oil prices. Market participants are expected to closely monitor sectoral trends, interest rate expectations, and global developments for further direction in financial stocks.

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.