Stock Market Today: Sensex, Nifty Ends Trading On A Flat Note; Here's Why

In the broader market, the trend was mixed. The Nifty IT index saw sharp losses of 3 per cent, followed by declines in the Nifty Media, Nifty Realty, and Nifty PSU Banks indices

Indian benchmark indices, Nifty and Sensex, recovered from their intraday lows to close the volatile session on Wednesday with only minor losses, ending near the flatline. The session started on a positive note, but the indices quickly reversed course and slipped into the red due to heavy selling in information technology stocks. 

However, strong performances from heavyweight stocks like Bajaj Finance, HDFC Bank, ITC, Tata Motors, and Reliance Industries provided some relief, lifting the indices from their lows. At the close, the Sensex dropped 72.56 points, or 0.10 per cent, to finish at 74,029.76, while the Nifty fell 27.40 points, or 0.12 per cent, to settle at 22,470.50. Market breadth remained weak, with 1,440 shares advancing, 2,383 declining, and 129 remaining unchanged.

Broader Market

In the broader market, the trend was mixed. The Nifty IT index saw sharp losses of 3 per cent, followed by declines in the Nifty Media, Nifty Realty, and Nifty PSU Banks indices, which ended 1-2 per cent lower. On the other hand, the Nifty Bank, Nifty Auto, Nifty Energy, and Nifty Pharma indices ended with gains of up to 0.5 per cent.

The midcap sector remained under pressure, with the key index dropping 0.6 per cent, while the smallcap index slipped around 0.2 per cent.

Sectorial Market

Information technology stocks experienced significant losses, with shares of Infosys, Wipro, HCLTech, TCS, and Tech Mahindra falling by 2-4 per cent following a recent note from Morgan Stanley, which highlighted potential downside risks for the sector.

Expert Comment

Bajaj Broking Research, said, "Nifty started the session on a positive note but struggled to sustain at higher levels, giving up its gains and reaching an intraday low of 22,329 in mid-session. However, buying interest emerged near yesterday's low, allowing the index to recover most of the losses and close marginally lower by 0.12 per cent at 22,470.50. The broader market showed a corrective bias, with the Nifty midcap and small-cap indices ending the session down by 0.6 per cent and 0.3 per cent, respectively.”

“Key economic indicators, including CPI data for the US and India, along with India’s IIP data, are set to be released today after the market closes. Among sectoral indices, Bank, Auto, Pharma, and Oil & Gas sectors saw gains of around 0.5 per cent, while IT, Media, and Realty sectors closed lower, with declines ranging from 3 per cent to 1.5 per cent,” it added.