Indian equity benchmarks closed marginally lower on Wednesday after a volatile trading session, with the BSE Sensex declining 138.74 points or 0.17 per cent to 80,081.98, while the NSE Nifty 50 fell 36.60 points or 0.15 per cent to close at 24,435.50.

Bajaj Finance led the gainers, surging 4.90 per cent, followed by Tech Mahindra at 2.14 per cent, Tata Consumer Products at 1.78 per cent, Bajaj Auto at 1.75 per cent, and HDFC Bank at 1.26 per cent.

On the flip side, M&M was the top loser, falling 3.22 per cent, followed by Sun Pharma (-2.69 per cent), Eicher Motors (-2.07 per cent), Shriram Finance (-1.86 per cent), and Power Grid (-1.84 per cent).

The broader market outperformed the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices rising by approximately 0.64 per cent and 1.25 per cent respectively. The NIFTY NEXT 50 declined 0.38 per cent to 70,884.70, while the NIFTY MIDCAP SELECT gained 0.82 per cent to reach 12,544.15.

Bajaj Finance led the gainers among Sensex stocks, rising 4.95 per cent to ₹7,007.95. Tech Mahindra followed with a 2.28 per cent gain, while HCL Tech (+1.29 per cent), TCS (+1.27 per cent), and HDFC Bank (+1.26 per cent) also posted gains. On the losing side, Mahindra & Mahindra fell by 3.23 per cent, followed by Sun Pharma (-2.79 per cent), Power Grid (-1.86 per cent), NTPC (-1.74 per cent), and Adani Ports (-1.68 per cent).

Market breadth remained positive with 2,187 stocks advancing and 1,743 declining on the BSE. A total of 122 stocks hit their 52-week highs, while 163 touched their 52-week lows. The session saw 253 stocks hitting the upper circuit and 346 touching the lower circuit limits.

“Investor mindset turned gloomy with the tepid earnings and a knee jerk reaction from FIIs, which dragged the market sentiment,” said Vinod Nair, Head of Research at Geojit Financial Services. He added that mid and small-caps experienced bargain hunting following the recent decline, though the sustainability of this momentum-driven buying remains uncertain.

The sectoral performance was mixed, with the IT index emerging as the top gainer, rallying 2.5 per cent, while Healthcare and Pharma indices shed over 1.5 per cent. The NIFTY BANK ended marginally lower at 51,239.00, down 0.04 per cent, while NIFTY FINANCIAL SERVICES gained 0.22 per cent to close at 23,752.00.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “While markets exhibited volatility in early trades, key indices erased gains in the second half to end marginally lower amid weakness in banking, power, oil & gas and realty shares. However, recovery in IT stocks helped markets pare losses.”

The market’s performance was influenced by continuous foreign investor outflows and disappointing quarterly earnings. “Apart from the concern of continuous outflow of the foreign investors, the disappointment on the earnings front is largely weighing on the sentiment,” explained Ajit Mishra, SVP, Research, Religare Broking Ltd.

FIIs/FPIs remained significant net sellers with an outflow of ₹3,978.61 crore in the capital market segment, while DIIs continued their strong buying streak with a net inflow of ₹5,869.06 crore.

Among other categories, clients recorded net selling of ₹299.25 crore, and NRIs posted a slight outflow of ₹0.91 crore. However, proprietary traders registered a net inflow of ₹115.27 crore, showing continued interest from this category.

The India VIX, which measures market volatility, increased by 1.31 per cent to 14.59, indicating heightened market uncertainty. The US 10-year yield’s upward movement suggested a slower pace of rate cuts by the Federal Reserve, potentially affecting sentiment towards emerging markets.

Trading data showed the market opened lower, with the Sensex starting at 79,921.13 compared to its previous close of 80,220.72, while the Nifty began at 24,378.15 versus its last close of 24,472.10. Despite some recovery attempts during the session, selling pressure at higher levels prevented any sustained upward movement.

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