Benchmark indices managed to close in the green, but the gains were significantly pared down from earlier highs due to profit booking and an uptick in market volatility. The S&P BSE Sensex climbed 259.75 points to settle at 80,501.99, while the NSE Nifty50 ended with a modest 12.50-point gain at 24,346.70.
The markets started on a strong note, driven by favorable global cues and broad-based buying across various sectors. However, this momentum waned as the day progressed, with investors choosing to lock in profits at elevated levels. A slight rise in volatility further dampened investor sentiment, contributing to a pullback in several key stocks.
The broader market also reflected a cautious tone, with both mid-cap and small-cap indices reversing early gains. These segments, which had been upbeat in the opening session, experienced a downturn as the day wore on.
Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity, noted that the positive sentiment at the start of the day was supported by easing fears over a potential trade war between the U.S. and China, following China’s indication of a willingness to engage in trade talks. Additionally, foreign institutional inflows provided a cushion to the domestic market. However, despite the early optimism, gains were limited due to investor caution stemming from rising geopolitical tensions, particularly between India and Pakistan.
The session was marked by noticeable volatility, with sharp price movements seen on both sides of the trade. As a result, while certain sectors like Oil & Gas, Financial Services, and Information Technology managed to outperform, others such as Consumer Durables, Metals, Realty, and Pharmaceuticals faced pressure and closed lower.
In terms of market breadth, 83 stocks in the derivatives segment recorded gains, while 138 stocks ended in the red. Stocks that saw notable open interest build-up included Federal Bank, Phoenix Mills, PNB Housing, JSW Steel, and Indus Towers, indicating a mix of investor sentiment and positioning within specific stocks. The overall choppy session highlighted a complex market environment, with cautious trading and increased volatility affecting sentiment.
