Sensex, Nifty End Lower as Banking, Auto Stocks Weigh on Market
MUMBAI — India’s benchmark equity indices ended slightly lower Thursday, retreating from intra-day highs as selling in banking and auto stocks capped gains and cautious sentiment persisted ahead of developments in U.S.-Iran talks.
The Sensex closed at 77,988.68, down 122.56 points, or 0.16 percent, while the Nifty slipped 34.55 points, or 0.14 percent, to finish at 24,196.75.
Analysts said near-term sentiment remains uncertain after the Nifty failed to decisively break the 24,300 resistance level.
“However, if it moves above 24,300 with conviction in the next session, a sustained rally could unfold in the near term,” an analyst said.
“Otherwise, a sharp bout of profit booking may emerge, potentially dragging the index towards 24,000,” another market expert added.
Among major laggards on the Nifty were shares of HDFC Bank, Oil and Natural Gas Corporation, and HDFC Life Insurance Company.
Despite the weakness in headline indices, broader markets outperformed. The Nifty MidCap index rose 0.63 percent, while the Nifty SmallCap index gained 0.83 percent.
Sectorally, metal and information technology stocks led the advances, with the Nifty Metal and Nifty IT indices emerging as top performers.
In contrast, rate-sensitive sectors such as private banks and financial services faced selling pressure, with the Nifty Private Bank and Nifty Financial Services indices among the biggest losers.
Market participants are expected to remain cautious in the near term, closely tracking global developments, particularly geopolitical tensions and negotiations between the United States and Iran, which could influence investor sentiment.
“Going forward, the sustainability of the trend will depend on earnings clarity, stability in crude prices, and continued improvement in global risk sentiment,” an analyst said.
Meanwhile, the Indian rupee strengthened after four sessions of decline, supported by a return of foreign institutional investors amid improving risk appetite.
“In the near term, the USDINR spot rate is expected to consolidate within a range of 92.80 to 93.50,” an analyst said. (Source: IANS)
