Sensex and Nifty end lower as banking and auto stocks drag markets

Benchmark indices Sensex and Nifty ended slightly lower after retreating from intra-day highs due to selling in banking and auto stocks. Investors remained cautious ahead of US-Iran talks, while broader markets outperformed and the rupee strengthened

Mumbai: Benchmark equity indices Nifty and Sensex ended off their intra-day highs on Thursday as selling pressure in banking and auto stocks capped gains.

However, investors also remained cautious ahead of further clarity on upcoming negotiations between the US and Iran.

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At the closing bell, the Sensex was at 77,988.68, down by 122.56 points or 0.16 per cent. Nifty followed suit and closed at 24,196.75, down by 34.55 or 0.14 per cent.

Commenting on Nifty technical outlook, experts said that the near-term sentiment remains uncertain, as the index failed to decisively clear the 24,300 resistance level.

“However, if it moves above 24,300 with conviction in the next session, a sustained rally could unfold in the near term,” an analyst stated.

“Otherwise, a sharp bout of profit booking may emerge, potentially dragging the index towards 24,000,” a market expert mentioned.

Shares of HDFC Bank, Oil and Natural Gas Corporation, and HDFC Life Insurance Company were among the top laggards in the Nifty index.

Despite the weakness in frontline indices, broader markets showed resilience and outperformed the benchmarks.

The Nifty MidCap index ended 0.63 per cent higher, while the Nifty SmallCap index gained 0.83 per cent.

On the sectoral front, metal and IT stocks led the gains, with the Nifty Metal and Nifty IT indices emerging as the top performers.

In contrast, rate-sensitive sectors such as private banks and financial services witnessed selling pressure, with the Nifty Private Bank and Nifty Financial Services indices closing as the top losers.

Market participants are expected to remain watchful in the near term, tracking global cues and developments around geopolitical tensions, particularly the US-Iran talks, which could influence investor sentiment and market direction.

“Going forward, the sustainability of the trend will depend on earnings clarity, stability in crude prices, and continued improvement in global risk sentiment,” an analyst stated.

Meanwhile, after four sessions of weakness, the Indian rupee gained ground as renewed risk-on sentiment prompted foreign institutional investors to return to the domestic equity markets.

“In the near term, the USDINR spot rate is expected to consolidate within a range of 92.80 to 93.50,” an analyst explained.