Despite a subdued session, underlying market sentiment remains cautiously optimistic, supported by earnings momentum and robust domestic macro indicators. However, global headwinds like sticky inflation, interest rate uncertainty, and geopolitical risks could continue to keep volatility elevated in the near term.
Benchmark domestic equity indices ended on a largely flat note on Wednesday as investors remained cautious amid weak global signals. Asian markets showed subdued sentiment following a slight uptick in U.S. inflation data for June, which raised uncertainty about the timeline of potential interest rate cuts by the Federal Reserve.
The 30-share BSE Sensex closed marginally higher by 63 points, or 0.08%, at 82,634, while the broader NSE Nifty50 ended at 25,212, gaining 16 points, or 0.06%.
Broader Market Action
The broader market witnessed relatively better momentum. The BSE Mid-Cap index advanced by 0.10%, and the Small-Cap index edged up 0.28%, indicating continued investor interest in mid- and small-sized companies.
Top Gainers and Losers
Out of the 30 Sensex stocks, 15 ended in green, with Mahindra & Mahindra topping the gainers’ list, rising 2.10%, followed by Tech Mahindra (+1.94%) and State Bank of India (+1.81%), on the back of positive earnings outlook and sector-specific tailwinds.
On the flip side, Eternal fell 1.58%, Sun Pharma dropped 1.55%, and Tata Steel declined 1.10%, weighed down by sectoral pressures and weak global commodity trends.
Sectoral Overview
A total of 16 out of 20 BSE sectoral indices ended in the green, with notable gains seen in:
- Focused IT: +0.67%
- Information Technology: +0.66%
- Services: +0.55%
However, sectors like Metal (-0.61%), Commodities (-0.37%), and Capital Goods (-0.24%) ended in the red, likely due to concerns over slowing Chinese demand and fluctuating global metal prices.
Market Breadth and Technical Highlights
The overall market breadth was positive at the BSE:
- 2,338 stocks advanced
- 1,718 stocks declined
- 162 remained unchanged
On the National Stock Exchange (NSE):
- 78 stocks hit fresh 52-week highs, showing strong bullish undertone in select counters
- 22 stocks touched their 52-week lows, reflecting ongoing pressure in underperforming segments
Despite a subdued session, underlying market sentiment remains cautiously optimistic, supported by earnings momentum and robust domestic macro indicators. However, global headwinds like sticky inflation, interest rate uncertainty, and geopolitical risks could continue to keep volatility elevated in the near term.
