CHENNAI: Indian equity markets ended Wednesday’s session on a subdued note, extending the cautious tone seen in recent days as investors preferred to pare positions and await clearer global and domestic cues. The benchmarks oscillated in a narrow range through most of the day before slipping marginally into the red by the close, reflecting a mix of profit-taking in select heavyweights and stock-specific moves across sectors.
The BSE Sensex settled lower by just over a hundred points, while the Nifty closed below the 26,150 mark. Early trade was marked by tentative buying after a mixed opening, but the momentum failed to sustain as selling pressure emerged in automobiles, energy stocks and parts of the financial space. Gains in information technology and select pharmaceutical stocks helped limit the downside, preventing a sharper fall in the broader indices.
Market participants appeared reluctant to take aggressive bets ahead of upcoming earnings announcements and amid lingering uncertainty on global macroeconomic and geopolitical developments. Investors also remained watchful of foreign fund activity, as intermittent selling by overseas investors continued to cap upside in frontline stocks. Domestic institutional buying provided some support, but it was not strong enough to decisively turn sentiment positive.
"The markets ended today’s session on a subdued and cautious note, with investors adopting a selective approach amid mixed domestic and global cues. Market participation remained largely stock-specific, as buying interest was restricted to companies with stable fundamentals and clear earnings visibility. Elevated geopolitical tensions and renewed tariff-related concerns continued to cap risk appetite and deter aggressive positioning," said R Ponmudi, CEO at Enrich Money, a leading brokerage and wealth management player.
Sectorally, IT stocks outperformed as expectations of stable deal pipelines and currency support lent comfort to investors. Pharma counters also saw selective buying, driven by defensive positioning and stock-specific triggers. In contrast, auto stocks came under pressure following recent gains, with investors booking profits amid concerns over demand normalization and input cost trends. Banking and financial stocks showed mixed performance, as heavyweight lenders struggled to gain traction despite relatively stable bond yields.
The broader market mirrored the cautious undertone, with mid-cap and small-cap stocks trading with modest losses after an early attempt at recovery. Market breadth was slightly negative, indicating that declines marginally outpaced advances, even as volatility remained contained.
From a trend perspective, the market continues to consolidate after the sharp rally seen toward the end of last year. The inability of the Nifty to decisively hold above recent highs has encouraged short-term traders to adopt a wait-and-watch approach, while longer-term investors appear to be selectively accumulating quality stocks on declines. Analysts note that the current phase reflects healthy consolidation rather than a reversal, provided key support levels hold in the coming sessions.
Looking ahead, near-term market direction is expected to be influenced by corporate earnings updates, global market cues and movements in commodities and currencies. Until greater clarity emerges, traders are likely to remain selective, with stock-specific action dominating headline index moves, added Ponmudi.