The stock market closed slightly lower on Wednesday after a volatile trading session, with the IT sector dragging down market performance while banking and auto stocks provided some support. The Sensex ended at 74,029.76, down 72.56 points or 0.10 percent, while the Nifty 50 slipped 27.40 points or 0.12 percent to close at 22,470.50.
The day started on a positive note but faced selling pressure in the first half of the session before recovering later in the day. The initial selloff was attributed to negative global cues, particularly concerns over U.S. trade policies following President Trump’s warning about potentially doubling tariffs on Canadian steel and aluminum.
Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity, noted, “Despite negative global cues, the Nifty opened flat at 22,536. The index reached an intraday high of 22,577 early in the session before sharply declining to an intraday low of 22,329. However, in the second half, Nifty saw a strong recovery, gaining approximately 140 points.”
The IT sector was the major laggard, with heavyweights like Infosys, Wipro, Tech Mahindra, and TCS posting significant losses. Banking stocks, on the other hand, showed strength, with IndusInd Bank leading the gainers by surging 4.38 percent. Other top gainers included Tata Motors, Kotak Mahindra Bank, Bajaj Finance, and ITC.
Sectoral performance was mixed, with Nifty Bank and Nifty Financial Services in the green while Nifty Midcap Select fell, reflecting broader market weakness.
Market breadth was negative, with more stocks declining than advancing on the BSE. In terms of technical analysis, the market showed signs of support at lower levels.
The rupee remained stable against the dollar, trading flat near 87.22. Investors are now awaiting key economic indicators like U.S. and India CPI data which could influence the market trajectory in the coming sessions.
Overall, the day saw a mix of ups and downs in the market, with various sectors showing different levels of performance. The recovery in the second half of the day provided some relief to investors amidst ongoing global uncertainties and economic concerns.
