Benchmark stock market indices ended the trading day marginally higher, although they struggled to maintain the early gains and closed in the green, despite several headwinds. The S&P BSE Sensex gained 70 points, closing at 80,288.38, while the NSE Nifty50 managed to edge up by 7.45 points, ending at 24,335.95. The day's trading was marked by a cautious mood as concerns over geopolitical tensions, coupled with mixed quarterly earnings reports from several companies, prompted investors to remain on edge.
According to Vinod Nair, the Head of Research at Geojit Investments, the market exhibited a largely range-bound movement, characterized by cautious sentiment as investors remained wary of potential retaliatory actions in the geopolitical landscape, particularly related to border tensions. Nair further added that while foreign institutional investors (FIIs) had provided support to market sentiment through continued inflows, the mixed quarterly results have heightened concerns that downward revisions to FY26 earnings projections could dampen investor enthusiasm. As a result, he anticipates that the market may see some consolidation in the near term, with investors taking a wait-and-see approach.
Despite the overall caution, a few prominent stocks performed well and provided some support to the indices. Reliance Industries, a heavyweight on the Sensex, emerged as the top performer of the day, surging 2.32% on the back of strong investor sentiment in the energy and telecom sectors. Following closely behind, Tech Mahindra saw a notable 2.14% uptick, driven by expectations of strong growth in the tech services sector. Other stocks in the IT and services sector also contributed positively, with Eternal, HCL Technologies, and Infosys advancing by 1.72%, 1.42%, and 1.03%, respectively.
TCS and IndusInd Bank also added incremental gains of 0.81% and 0.82%, respectively, as banking and IT services continue to be among the favored sectors for investors in the current economic climate. Meanwhile, Bajaj Finserv rose by 0.79%, and Adani Ports added 0.37%, contributing to the day's positive movement in the indices.
However, the gains were offset by significant declines in several key stocks. Sun Pharmaceutical Industries, a major player in the healthcare sector, took the biggest hit, falling 2.01%, following some concerns over regulatory and pricing pressures. UltraTech Cement, a key player in the construction materials sector, dropped 1.99%, largely due to concerns over input costs and margin pressures. Additionally, Power Grid saw a 1.75% decline, while NTPC slipped by 1.22%.
Kotak Mahindra Bank, traditionally seen as a stable performer in the banking sector, also retreated by 0.93%, despite strong fundamentals. Other notable losers included M&M (-0.91%), Nestle India (-0.90%), HDFC Bank (-0.53%), and Tata Steel (-0.39%), reflecting the broader risk-off sentiment among investors. These declines suggest that despite the overall market stabilization, concerns about economic growth and earnings visibility continue to weigh heavily on certain sectors.
On the broader market front, the Nifty Midcap100 gained 0.34%, while the Nifty Smallcap100 rose by 0.42%, indicating that mid- and small-cap stocks were slightly more favored, especially in comparison to their large-cap counterparts. Despite some positive movement in smaller stocks, the market’s volatility increased, reflected in the India VIX, which rose by 2.46%, signaling heightened uncertainty as geopolitical risks persist.
In terms of sector performance, Nifty IT was the standout, surging by 1.20%, driven by the strong performances of top tech stocks such as Tech Mahindra, Infosys, and HCL Technologies. The positive momentum in the IT sector was a major contributor to the day's gains, as tech companies continue to benefit from a global demand for digital transformation services.
On the other hand, the Nifty Pharma index was the worst performer, declining by 1.08%, with stocks like Sun Pharma bearing the brunt of the sector's weakness. The Nifty Metal index followed closely, dropping by 0.83%, as concerns over commodity prices and global demand weighed on investors' sentiment. Similarly, the Nifty Media index also slid 0.83%, amid concerns over advertising revenue slowdowns and other macroeconomic challenges.
The Nifty Healthcare index fell 0.85%, reflecting the broader pressures in the healthcare and pharmaceutical sectors. Other sector indices in the red included Nifty Financial Services, which declined by 0.40%, and Nifty Private Bank, which retreated by 0.32%. Both sectors remain under pressure due to concerns over margin compression and rising credit risks amid a volatile economic environment.
Meanwhile, the Nifty Consumer Durables index managed to gain 0.71%, and the Nifty Oil & Gas sector also posted a respectable gain of 0.57%, as global oil prices remained relatively stable, providing some relief to energy stocks. The Nifty Realty index shed 0.13%, reflecting mixed sentiment in the real estate sector despite ongoing demand in residential markets. The Nifty PSU Bank index also ended the day down 0.12%, indicating limited movement in state-owned banking stocks.
In conclusion, while the market managed to stay in the green at the close of trading, the session was marked by a consolidation phase, with sector-specific pressure in pharmaceuticals, metals, and media sectors. IT stocks, led by Reliance Industries and Tech Mahindra, helped lift the overall indices, while geopolitical concerns and mixed earnings reports point to a more cautious outlook in the coming weeks. With market volatility rising and inflationary concerns continuing to make headlines, investors will likely remain vigilant as they navigate the near-term uncertainties.
