Intraday Gains Evaporate; Benchmarks Finish Lower
DSIJ Intelligence-11Categories: Mkt Commentary, Trending
A promising start failed to translate into a strong finish as cautious sentiment resurfaced on Dalal Street, prompting investors to book profits and pushing indices into negative territory by the close.
Indian equity benchmarks ended Wednesday’s session lower, giving up early gains as investor sentiment turned cautious through the day. After opening on a positive note, both the BSE Sensex and the Nifty 50 witnessed profit booking, which erased Intraday advances and dragged the indices into negative territory by the close. The Nifty 50 settled 0.13 per cent lower at 26,142, while the BSE Sensex declined 0.14 per cent to end at 85,408.
The market’s inability to sustain early momentum reflected a lack of fresh triggers, with investors preferring to book profits at higher levels. Interestingly, volatility cooled despite the weak close, as the Nifty VIX fell by over 2 per cent, indicating subdued near-term risk perception among market participants.
Sectoral trends were largely muted, with most indices closing in the red. Oil and gas, energy, information technology and fast-moving consumer goods stocks emerged as the key laggards, weighing on overall market sentiment. IT stocks remained under pressure amid concerns over global demand visibility, while FMCG counters saw selling due to valuation concerns and a gradual demand recovery.
In contrast, the BSE Telecommunication Index outperformed the broader market, emerging as the sole gainer among major sectors. The index posted modest gains of around 0.25 per cent, supported by selective buying interest, making it the day’s top-performing sector.
The broader market followed the trend set by frontline indices. The BSE Midcap Index declined 0.37 per cent, while the BSE Smallcap Index slipped 0.14 per cent during the session. Despite the overall weakness, select stocks attracted buying interest even in a subdued market environment. K&R Rail Engineering Ltd, VIP Industries Ltd and JBM Auto Ltd featured among the notable gainers in the Small-Cap space, bucking the broader negative trend.
On the Nifty 50, gains were supported by stocks such as Trent Ltd, Shriram Finance Ltd and Apollo Hospitals Ltd, which contributed positively to the index. However, losses in InterGlobe Aviation Ltd, Adani Enterprises Ltd and Dr Reddy’s Laboratories Ltd offset these gains, exerting downward pressure on the benchmark.
Market breadth on the NSE tilted in favour of decliners. Of the 3,250 stocks traded, 1,770 ended lower, while 1,361 advanced and 119 remained unchanged. Activity in the broader market remained mixed, with 90 stocks hitting their 52-week highs and 60 touching 52-week lows. Additionally, 79 stocks were locked in Upper Circuits, while 46 stocks hit Lower Circuits.