Benchmarks End Flat After Choppy Session as Nifty Holds Above 23,900

Indian benchmark indices ended largely flat in a volatile trading session on Wednesday, as weakness in banking, IT and FMCG stocks offset strong buying in auto, metal, media and power counters.

The Sensex declined 141.90 points, or 0.19%, to settle at 75,867.80, while the Nifty 50 slipped 6.55 points, or 0.03%, to end at 23,907.15. Despite the muted headline move, market breadth remained positive with 2,168 shares advancing against 1,877 declines on the NSE.

The benchmarks had opened higher tracking strong global cues after Japan’s Nikkei scaled fresh record highs and Wall Street extended gains overnight. However, profit booking in heavyweight banking and technology stocks erased most of the early gains as the session progressed.

Banks, It Stocks Weigh on Sentiment

Financial stocks remained the biggest drag on the indices, with private sector lenders witnessing sustained selling pressure.

HDFC Bank and HDFC Life Insurance Company featured among the top laggards on the Nifty, while IT counters such as Wipro also traded weak.

The Sensex managed to stay above water even after noon before slipping below the red and ending almost flat. Source: BSE 

Selling pressure was also visible in FMCG and oil & gas counters, with ITC and Oil and Natural Gas Corporation among notable losers during the session.

Market participants remained cautious amid lingering geopolitical concerns and uncertainty around the trajectory of global crude oil prices despite Wednesday’s pullback in oil.

Auto, Metals and Media Stocks Outperform

On the positive side, cyclical and domestic-facing sectors witnessed strong buying interest.

The Nifty Media, Power and Capital Goods indices surged around 3% each, emerging as the top-performing sectoral gauges of the session. Auto and metal stocks also ended higher by around 1% each.

The Nifty got rescued by autos and metals, but the rescue could only land it near the flatline, and no higher. Source: NSE

Among key gainers on the Nifty were Hindalco Industries, Power Grid Corporation of India, Tata Motors, NTPC and Eternal.

Power and telecom counters continued to attract strong momentum amid ongoing investor interest in infrastructure and energy transition themes.

Midcaps, Smallcaps Remain Resilient

Broader markets once again outperformed the frontline indices.

The Nifty Midcap index rose around 0.4%, while the Smallcap index ended with marginal gains, indicating continued risk appetite in the broader market despite volatility in benchmark indices.

Several retail-driven momentum stocks remained active during the session, including Jaiprakash Power Ventures, Vodafone Idea and Suzlon Energy.

Global Cues Remain Supportive

Asian markets ended mostly higher, led by gains in Japan and semiconductor-linked shares, while Wall Street had recorded gains overnight amid continued enthusiasm around artificial intelligence and chip stocks.

Going ahead, investors are expected to closely track crude oil prices, foreign institutional investor flows, geopolitical developments and upcoming macroeconomic triggers for further direction in domestic equities.

Source:

• NSE
• BSE