Sensex, Nifty End Lower As IT Stocks Decline, Metals And Banks Gain

Indian equity benchmark indices ended lower on Wednesday, with weakness in IT stocks offsetting gains in private banks and metal stocks.

The Nifty declined 126.80 points, or 0.52%, to settle at 24,207.75, while the Sensex fell 183.15 points, or 0.24%, to 77,472.94.

Kotak Mahindra Bank, UltraTech Cement, Axis Bank, HDFC Life and Tata Steel were among the biggest Nifty gainers. Infosys, Power Grid Corp, Bharti Airtel, Tech Mahindra and L&T were the top losers.

IT Stocks Drag Benchmarks

Sectoral performance remained mixed. The metal and private bank indices gained around 1% each, while the IT index declined 1%.

Auto, consumer durables, FMCG and infrastructure indices fell between 0.3% and 0.7%.

In the broader market, the Nifty midcap index ended flat, while the smallcap index gained 0.8%.

Vinod Nair, Head of Research at Geojit Investments, said sectoral divergence weighed on the benchmarks through the session.

"Inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realisation prospects," Nair said.

However, gains were offset by weakness in IT stocks after the US paused visa appointments amid an immigration crackdown, which rekindled concerns over margin pressure.

Crude, Global Cues In Focus

Falling crude oil prices, softer US Treasury yields and a rebound on Wall Street have improved the global risk environment. WTI crude has declined more than 6% over two sessions to around $80-81 a barrel, offering some relief after weeks of crude-driven inflation concerns.

Investors will continue to track developments involving the US, Iran and Oman over the Strait of Hormuz for signs of potential supply disruptions.

Nair said investors are now awaiting the US Core PCE print for greater clarity on the interest-rate trajectory. A contained core reading, he said, would indicate that the recent energy-led inflation spike is transitory, potentially easing rate concerns and supporting flows into emerging markets.

Gold Sees Profit Booking

Gold traded weak near ₹1,62,200, down around ₹650, while COMEX gold slipped from the $4,700 zone as the dollar edged higher towards 98.99, said Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities.

With gold already rallying nearly 15% in August, some technical profit booking is likely at higher levels, Trivedi said.

"The broader trend remains positive as long as COMEX holds $4,500 and MCX holds ₹1,57,000," he said.

US GDP data and developments around the US-Iran situation will remain key triggers for bullion prices, according to Trivedi.