Indian benchmark indices, the Sensex and Nifty50, experienced a volatile trading session, initially opening on a positive note and maintaining marginal gains for much of the day. This cautious optimism was largely fueled by ongoing hopes for a favorable US-India trade deal. However, persistent selling pressure from Foreign Institutional Investors (FIIs) acted as a significant drag, ultimately leading to a late-session sell-off that pushed both indices into negative territory by market close.
The BSE Sensex, after touching an intraday high of 83,850, reversed its course to settle at 83,239.7 levels, marking a decline of 170.22 points or 0.2 percent. Similarly, the NSE Nifty50, a broader representation of the Indian market, also succumbed to the selling pressure, falling 48.1 points or 0.19 percent to close at 25,405.3 levels.
The performance of the broader markets was mixed. The Nifty Midcap100 index managed to close largely flat with a positive bias, suggesting some resilience in mid-sized companies. In contrast, the Nifty Smallcap100 index faced more significant headwinds, settling down by 0.26 percent, indicating a more pronounced impact of selling on smaller capitalization stocks.
Sectoral performance was varied. The Nifty PSU Bank index emerged as the top laggard, declining by a notable 0.89 percent. This downturn was primarily attributed to weakness in major public sector lenders, including Punjab National Bank, Union Bank of India, UCO Bank, and Central Bank. Other sectors that closed in the red included Nifty Metal, Realty, Bank, and Financial Services, highlighting a broad-based cautious sentiment across interest-rate sensitive and cyclical sectors.
Conversely, several sectors managed to buck the trend and close higher. Nifty Media, Auto, Pharma, Healthcare, Consumer Durables, Oil & Gas, and FMCG all registered gains. This suggests a rotation of investor interest towards defensive sectors and those less impacted by immediate economic uncertainties or FII selling.
Within the Sensex constituents, a majority of stocks (19 out of 30) ended the session in negative territory. Prominent underperformers included Kotak Mahindra Bank, Bajaj Finserv, Bajaj Finance, Adani Ports, Trent, and State Bank of India, reflecting the sector-specific weakness observed. On the brighter side, Maruti Suzuki, Infosys, NTPC, Asian Paints, Hindustan Unilever, and Eternal were among the top gainers, providing some support to the benchmark index.
Meanwhile, the India VIX, a key indicator of market volatility, showed a slight moderation, settling lower by 0.48 percent at 12.38 points. This marginal decrease in volatility could suggest that while selling pressure was evident, it didn’t escalate into a widespread panic, perhaps due to underlying optimism regarding future trade developments.
Stock Movers: Sensex Constituents
Out of the 30 stocks on the Sensex, 19 closed in the red. Top laggards included:
- Kotak Mahindra Bank
- Bajaj Finserv
- Bajaj Finance
- Adani Ports
- Trent
- State Bank of India
Meanwhile, some counters saw notable buying interest. The top gainers were:
- Maruti Suzuki
- Infosys
- NTPC
- Asian Paints
- Hindustan Unilever
- Eternal
Volatility Eases Slightly
The India VIX, a key indicator of market volatility, cooled off by 0.48%, ending the session at 12.38. This suggests that despite the late sell-off, broader market sentiment remained relatively stable.
Looking Ahead
Investors are now closely watching developments on the trade front between India and the US, corporate earnings season cues, and global macroeconomic signals. With persistent FII selling and sector-specific rotation, markets may remain choppy in the short term.
