Mumbai: In a fluctuating trading session on Wednesday, benchmark stock indices Sensex and Nifty closed on a largely flat note as gains in PSU banks and the auto sector offset declines in IT stocks. The 30-share BSE Sensex fell by 40.28 points, or 0.05 percent, to close at 84,233.64, while achieving a high of 84,487.34 and a low of 84,081.25 during the day. The NSE Nifty, in contrast, recorded a slight increase of 18.70 points, or 0.07 percent, ending at 25,953.85.
Among the 30 companies listed on Sensex, notable laggards included Tata Consultancy Services, Infosys, HCL Technologies, and ITC, alongside other prominent firms like Axis Bank and Tata Steel. Conversely, leading gainers were State Bank of India, Maruti Suzuki India, and Reliance Industries, which contributed significantly to the day’s trading performance.
Analysts suggest that domestic equities may experience a brief consolidation phase following a robust rally that was driven by the US-India trade agreement. Vinod Nair, Head of Research at Geojit Investments Ltd, noted that market focus has shifted back to mixed Q3 results, upcoming inflation data, and the final details of the trade deal, which is reportedly nearing completion. He pointed out that the strength in the auto and healthcare sectors reflects better-than-expected earnings, while the IT sector faced challenges amid global selloffs linked to AI-related volatility.
Overall market sentiment appeared cautious globally, influenced by disappointing US retail sales and ongoing uncertainties regarding AI developments, leading to a risk-averse attitude among investors ahead of critical US employment data. However, the domestic market has begun to see improved foreign institutional investor (FII) flows, which have turned positive following favorable GDP forecasts and a moderation in India’s market valuations.
On the BSE, a total of 2,316 stocks declined, while 1,913 advanced, and 154 remained unchanged. The BSE MidCap Select Index rose by 0.18 percent, whereas the SmallCap Select Index ended flat. Sector-specific performance showed declines in the IT and private banking sectors, while gains were recorded in healthcare, auto, PSU banks, and several other sectors, contributing to a generally resilient market performance despite the challenges.
Nandish Shah, Deputy Vice President at HDFC Securities, highlighted that the Nifty has now extended its winning streak to four consecutive sessions, bringing a modest gain of 18 points. He noted that while the IT and private banking sectors faced difficulties, most other indices, including healthcare and auto, posted strong performances, showcasing resilience in certain market segments. With positive indicators in several sectors, investors can maintain hope for continued stability and growth in the future.