Benchmark indices closed in the red on Wednesday after a volatile trading session, with investor caution dominating ahead of the second-quarter earnings season and heightened global uncertainties stemming from the ongoing US government shutdown.
The BSE Sensex settled 153.09 points or 0.19 per cent lower at 81,773.66, while the Nifty 50 declined 62.15 points or 0.25 per cent to close at 25,046.15. The 30-share index had opened at 81,899.51 against its previous close of 81,926.75, while Nifty opened at 25,079.75 compared to Tuesday’s close of 25,108.30.
Information technology emerged as the sole bright spot among sectoral indices, with leading the Nifty 50 gainers pack, surging 4.29 per cent to close at ₹3,565.00. Infosys advanced 2.30 per cent to ₹1,492.00, while rose 1.94 per cent to ₹3,031.50. gained 1.33 per cent to settle at ₹1,452.50, and Tech Mahindra climbed 1.20 per cent to ₹1,456.10.
On the losing side, Tata Motors was the top laggard, dropping 2.54 per cent to ₹680.30, followed by Mahindra & Mahindra, which fell 1.94 per cent to ₹3,425.00. Jio Financial Services declined 1.68 per cent to ₹304.70, UltraCement lost 1.67 per cent to ₹11,980.00, and Bharat Electronics slipped 1.63 per cent to ₹403.60.
“National indices witnessed a volatile session, tempered by profit booking after a sharp rally,” said Vinod Nair, Head of Research at Geojit Investments Limited. “Investor caution dominated ahead of the Q2 earnings season, as market participants reassessed valuations and growth prospects. Sectoral trends were mixed — IT stocks outperformed on resilient demand and attractive valuations, while Auto, Banking, and FMCG faced profit-taking pressure.”
Broader market sentiment remained weak, with the Nifty Midcap 100 declining 0.73 per cent to 57,866.75 and the Nifty Next 50 falling 0.77 per cent to 68,139.95. Among other sectoral indices, Nifty Bank dropped 0.39 per cent to 56,018.25, while Nifty Financial Services slipped 0.45 per cent to 26,656.40.
Market breadth was negative, with 2,435 stocks declining against 1,740 advances on the BSE, while 155 shares remained unchanged. A total of 161 stocks touched their 52-week highs, while 144 hit their 52-week lows. As many as 239 stocks hit the upper circuit, while 167 were locked in the lower circuit.
“The Nifty 50 opened on a firm note but failed to sustain momentum beyond its immediate resistance zone near 25,200, triggering broad-based profit booking and selling pressure across key sectors such as banking, auto, FMCG, and realty,” noted Ponmudi R, CEO of Enrich Money. “The index subsequently slipped to a weekly low of 25,008, where buying interest emerged around the psychological support of 25,000.”
Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities, observed, “Indian equity benchmark indices Nifty and Sensex formed a small body candle with long upper shadows on the daily chart for the second consecutive day, reflecting selling pressure at the higher levels.”
Meanwhile, global uncertainties continued to weigh on sentiment, with gold prices surging to historic highs of $4,000 (approximately ₹1,22,000) amid the ongoing US government shutdown now in its second week. “Heightened global uncertainties and the ongoing US government shutdown drove gold to a historical high, reflecting elevated risk aversion,” Nair added.
The organised gold loan market is projected to reach ₹15 trillion by March 2026, a year ahead of earlier estimates, driven by record-high gold prices, according to ICRA. The market is further expected to expand to ₹18 trillion by March 2027.
Looking ahead, market participants will closely monitor the September FOMC minutes for signals on the Federal Reserve’s policy stance. “Going forward, while global developments remain relevant, market focus is likely to shift toward domestic earnings, macroeconomic data, and the upcoming festive season,” Nair said, indicating that attention would turn to corporate earnings performance and domestic consumption trends in the coming sessions.