Benchmark stock market indices ended the day on a flat note Wednesday after a turbulent trading session, with concerns over escalating Indo-Pak border tensions affecting investor sentiment. The S&P BSE Sensex fell by 46.14 points, closing at 80,242.24, while the NSE Nifty50 saw a slight dip of 1.75 points, settling at 24,334.20.
According to Vaibhav Vidwani, a Research Analyst at Bonanza, the market faced selling pressure largely due to the growing geopolitical uncertainty along the India-Pakistan border. This led to cautious trading behavior throughout the day. Vidwani noted that investors are also keeping an eye on upcoming corporate earnings, developments in US-India trade talks, and broader geopolitical concerns. He indicated that, given these factors, the market is likely to remain volatile, driven by global trade dynamics and domestic geopolitical challenges.
In terms of sectoral performance, Maruti Suzuki emerged as a top gainer, advancing by 3.04%, followed by Bharti Airtel, which rose 2.18%. Sun Pharmaceutical Industries continued its positive momentum, adding 1.41%, while Power Grid Corporation gained 1.12%, and Hindustan Unilever rounded out the top five with a 0.81% increase.
On the flip side, Bajaj Finserv was hit hardest, plummeting 5.45%, while Bajaj Finance fell 4.99%. Other notable losers included Tata Motors, which dropped 3.22%, State Bank of India, which slid 2.91%, and UltraTech Cement, down by 1.87%.
Broader market indices also experienced selling pressure, with the Nifty Midcap100 dropping 0.85%, and the Nifty Smallcap100 losing 1.73%. Market volatility spiked, as evidenced by a 4.90% increase in the India VIX.
Among sectoral indices, a few managed to stay in the green. The Nifty Realty sector led with a solid gain of 1.91%, while both the Nifty Pharma and Nifty Healthcare indices saw a modest increase of 0.44%. The Nifty Auto sector barely stayed positive with a marginal gain of 0.04%, as did Nifty Oil & Gas, which inched up by 0.04%.
However, many sectors faced significant selling pressure. The Nifty Media index suffered the steepest decline, falling 2.18%, followed by Nifty PSU Bank, which dropped 2.23%. The Nifty Consumer Durables index slid 0.88%, while Nifty IT saw a decrease of 0.35%. Other sectors in the red included Nifty Financial Services (down 0.29%), Nifty Metal (down 0.29%), Nifty Private Bank (down 0.23%), and Nifty FMCG, which edged down by 0.05%.
Despite the overall market weakness, Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, pointed out that rotational buying in heavyweight stocks across sectors has helped cushion the downside. Looking ahead, he advised that the market will be closely watching global developments, especially U.S. GDP data and corporate earnings, scheduled for Friday. Mishra emphasized that a stock-specific trading approach, with a focus on buy-side opportunities, remains prudent in these uncertain times.
