Sensex Ends Flat, Nifty Slips As Profit Booking Erases Early Gains

Indian benchmark indices ended on a muted note in a volatile session on Thursday as profit booking at higher levels erased early gains, while weakness in banking and realty stocks offset buying in IT and consumer-focused shares amid cautious global cues.

The Sensex ended 1.44 points higher at 77,186.87, while the Nifty 50 slipped 5.75 points, or 0.02%, to close at 24,072.75. The benchmark indices gave up most of their intraday gains, with the Sensex falling nearly 300 points from the day's high and the Nifty slipping below the 24,100 mark.

Market breadth remained mixed. Among the Nifty constituents, InterGlobe Aviation, Wipro, Bajaj Finance, HCL Technologies and Maruti Suzuki were the top gainers. On the other hand, Eternal, SBI Life Insurance, Bharat Electronics, HDFC Bank and Shriram Finance ended among the biggest losers.

Profit Booking Caps Market Gains

The market witnessed profit booking after a positive start, with investors trimming positions amid weak global cues and uncertainty over geopolitical developments.

Broader markets also remained under pressure. The Nifty Midcap 100 declined 0.41%, while the Nifty Smallcap 100 ended largely unchanged.

Sectoral performance was mixed. Nifty Consumer Durables emerged as the top-performing index, rising 1.4%, followed by Nifty Media (1%), Nifty IT (0.5%) and Nifty Auto (0.4%). FMCG, Oil & Gas and Pharma indices also closed in positive territory.

On the downside, Nifty Realty was the biggest laggard, falling 1%, followed by Nifty PSU Bank (-0.5%), Nifty Metal (-0.35%), Nifty Private Bank (-0.28%) and Nifty Bank (-0.27%).

Weak Global Cues Weigh On Sentiment

Investor sentiment remained cautious after weakness across global markets. Asian equities came under pressure following a sharp selloff in US semiconductor stocks. South Korea's Kospi tumbled 6.7% as heavyweight chipmakers SK Hynix and Samsung Electronics fell 11% and 7%, respectively. The decline followed heightened volatility after SK Hynix's recent US listing.

Japan's Nikkei also opened nearly 3% lower, with chip-related stocks such as Advantest and SoftBank Group witnessing sharp declines.

Meanwhile, European markets also opened lower, with the pan-European Stoxx 600 edging down as weakness spread across industrials, technology and consumer stocks.

The Indian rupee settled weaker at 96.35 against the US dollar, compared with the previous close of 96.26, amid elevated crude oil prices and cautious global sentiment.

Vinod Nair, Head of Research at Geojit Investments, said Indian equities remained subdued as investors stayed cautious amid geopolitical uncertainties, fluctuating oil prices and weak Asian market trends.

He said inflation concerns continued to weigh on financials and realty stocks, while the chemicals sector outperformed after the reinstatement of import duties on select petrochemicals and improving earnings momentum. Cooling US inflation, however, provided some support by easing concerns over interest rates.

According to Nair, investors will closely monitor corporate earnings, management commentary and the progress of the monsoon, while global developments and inflation trends will continue to influence market direction.

Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said the market is undergoing a healthy consolidation phase after recent volatility, with benchmark indices continuing to hold above key support levels.