The domestic equity market ended lower on Thursday as heavy selling in financial stocks outweighed gains in information technology and automobile shares. Investor sentiment remained cautious ahead of the closely watched US non-farm payrolls data, while elevated crude oil prices and lingering geopolitical tensions in West Asia kept risk appetite in check.
The BSE Sensex closed 455.59 points, or 0.58%, lower at 78,499.17. The 30-share index opened at 78,516.08, touched an intraday high of 78,757.40, and fell to a low of 78,377.07 during the session.
The Nifty 50 settled 65.35 points, or 0.27%, lower at 24,570.65 after moving between 24,522.75 and 24,630.40.
Financials weigh on benchmarks
The decline was led by financial stocks, with Bajaj Finance tumbling nearly 5.9%, while Bajaj Finserv fell over 4.1%. ICICI Bank lost around 3.7%, while Trent, Axis Bank, Asian Paints, Kotak Mahindra Bank and HDFC Bank also ended in the red.
Technology stocks bucked the broader weakness. TCS emerged as the top Sensex gainer, rising 3.5%, followed by M&M, which gained over 2.5%. Tech Mahindra, SBI, Infosys, HCLTech, Reliance Industries, IndiGo, Maruti Suzuki, Power Grid and NTPC also closed higher.
IT, Auto outperform; financials remain under pressure
Among sectoral indices, Nifty IT surged 1.42%, while Nifty Auto jumped 1.84%, emerging as the day’s best-performing sectors. PSU Bank, Metal, Healthcare and Cement indices also managed to end with gains.
On the other hand, Nifty Financial Services dropped 1.48%, while Financial Services Ex-Bank plunged 1.91%. Private Bank, Consumer Durables, Chemicals and Realty also finished in negative territory.
Broader markets show resilience
Despite weakness in frontline indices, the broader market remained resilient. Nifty Midcap Select rose 0.42%, while Nifty Midcap 100 gained 0.22% and Midcap 150 advanced 0.22%. The Nifty MidSmallCap 400 added 0.14%, indicating continued buying interest in select mid- and small-cap stocks.
Volatility remained subdued, with India VIX ending nearly flat at 12.15.
Vinod Nair, head of research at Geojit Investments, said, “Market sentiment remains measured as the absence of a definitive geopolitical resolution in the Middle East continues to keep crude oil prices volatile. Meanwhile, gold has strengthened on renewed safe-haven demand and a softer US dollar, with investors closely tracking the upcoming US non-farm payrolls data for further clarity on the Fed’s policy trajectory.”
Domestically, earnings from several industry bellwethers have been in line with or ahead of expectations, providing a constructive backdrop for sector-specific optimism and investment opportunities. Notably, SBI’s strong performance, underpinned by healthy credit growth, improving asset quality and resilient margins, has reinforced confidence in the banking and PSU banking segments, offering an important pillar of support to the broader market outlook, he added.