Benchmark indices ended Wednesday’s session nearly flat after a volatile day of trading, even as mid and small-cap stocks rallied sharply from recent lows. The Sensex closed at 75,939.18, down marginally by 28.21 points or 0.04 per cent, while the Nifty 50 slipped 12.40 points or 0.05 per cent to end at 22,932.90.
The day saw a remarkable divergence between benchmarks and broader markets, with the Nifty Midcap Select surging 1.20 per cent to 11,270.25 and the Nifty Next 50 climbing 1.19 per cent to 60,156.40. Banking stocks showed strength, with the Nifty Bank index rising 0.98 per cent to 49,570.10.
“While markets ended flat with a slightly negative bias due to selling in IT stocks, the broader markets witnessed a lot of optimism as mid & small-cap stocks rallied after the recent sell-off,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
The market breadth turned decisively positive for the first time in nine sessions, with 2,810 advances against 1,147 declines on the BSE. Notably, 55 stocks hit 52-week highs, while 387 touched 52-week lows.
Among the sectoral performers, realty, media, metals, and PSU banking stocks gained significantly, while the IT and pharma sectors faced selling pressure. Concerns over potential US tariffs on pharmaceutical imports weighed on pharma stocks after recent comments from US President Donald Trump.
The top gainers on NSE included BEL (+3.54 per cent), Hindalco (+2.70 per cent), Eicher Motors (+1.92 per cent), Axis Bank (+1.53 per cent), and LT (+1.52 per cent). On the losing side, Dr. Reddy’s fell 2.48 per cent, followed by TCS (-2.28 per cent), Infosys (-2.22 per cent), Hindustan Unilever (-2.00 per cent), and Adani Enterprises (-1.95 per cent).
The Indian rupee weakened against the US dollar, trading at 86.81, down by 0.05 rupees. “The rupee traded lower as the dollar index remained sideways near 107$, but rising crude prices above 72.40$ (WTI) added pressure on the rupee,” noted Jateen Trivedi, VP Research Analyst at LKP Securities. He added, “Volatility is expected to continue with key events such as Trump’s speech, the Fed meeting minutes, and RBI meeting minutes on the horizon this week.”
Technical analysts see the market at a critical juncture. “The Nifty has moved within a band, keeping the volatile vibe intact. On the lower end, 22,800 is likely to remain a crucial support,” said Rupak De, Senior Technical Analyst at LKP Securities. “Until 22,800 is broken, we do not expect a significant fall in the market.”
“Despite early weakness, the market showed signs of recovery and remained rangebound throughout the session. On the daily chart, Nifty formed a falling wedge pattern, indicating potential support and a possible rebound,” observed Mandar Bhojane, Research Analyst at Choice Broking. “The index is consolidating and attempting to bounce back, with immediate resistance at 23,000 and 23,200. A sustained close above these levels could trigger a bullish rally towards 23,400 and 23,800.”
The smallcap and microcap indices showed particular strength, both gaining over 2.3 per cent and forming bullish engulfing patterns on the daily charts. “Both Smallcap and Microcap indices have formed a bullish engulfing candlestick pattern on the daily chart, indicating a probable trend reversal,” observed Vinay Rajani, Senior Technical Analyst at HDFC Securities.
Gold continued its upward trajectory amid global uncertainty, gaining ₹400 to trade at ₹86,500 on the MCX, while Comex gold strengthened to $2,945. “Persistent global uncertainty due to tariffs has reinforced gold’s status as a safe-haven asset,” explained Jateen Trivedi.
Market participants remain cautious about several upcoming events. “All eyes are now on the FOMC minutes, expected to signal a hawkish stance,” said Ameya Ranadive, Sr Technical Analyst at StoxBox. The minutes could provide clues about the Fed’s approach to future rate cuts as inflation concerns persist.
Vinod Nair, Head of Research at Geojit Financial Services, provided perspective on current market dynamics: “Despite concerns over potential US tariff impositions and delays in anticipated interest rate cuts, market sentiment remains optimistic about a rebound in India’s Q3 GDP growth. At this juncture, large-cap stocks present a more attractive risk-reward proposition, given their fair valuations.”
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