Markets end lower as Asian Paints, consumer stocks drag; broader indices show resilience

Equity benchmarks witnessed a volatile trading session on Wednesday, swinging between gains and losses before closing in the red, as investors remained cautious ahead of the Reserve Bank of India’s monetary policy decision due Friday.

The BSE Sensex began the day on a positive note at 78,704.60, higher than its previous close of 78,583.81, but eventually succumbed to selling pressure to end at 78,271.28, down 312.53 points or 0.40 per cent. Similarly, the NSE Nifty50 opened at 23,738.40 against its last close of 23,739.25, but closed lower at 23,696.30, declining 42.95 points or 0.18 per cent.

“Today, the benchmark indices witnessed narrow range activity,” observed Shrikant Chouhan, Head Equity Research at Kotak Securities. “A small bearish candle formation on the daily charts and lackluster intraday activity indicate the continuation of non-directional momentum in the near future.”

The market displayed significant volatility throughout the session, with the Nifty touching an intraday high of 23,807 in early trade before retreating. “The benchmark index initiated the trading session on a positive note; however, it reached the day’s high within the initial minutes at 23,807. Subsequently, it was unable to maintain this peak and experienced mild profit-taking,” explained Ameya Ranadive, Sr Technical Analyst at StoxBox.

Consumer stocks led the decline, with Asian Paints emerging as the biggest laggard among Nifty constituents, dropping 3.40 per cent. Other major losers included Titan (-2.99 per cent), Nestlé India (-2.17 per cent), Britannia (-1.96 per cent), and Tata Consumer (-1.86 per cent). However, metal and energy stocks showed strength, with Hindalco leading the gainers, up 2.90 per cent, followed by ITC Hotels (+2.88 per cent), ONGC (+2.74 per cent), Apollo Hospitals (+2.44 per cent), and BPCL (+2.19 per cent).

The broader market showed resilience despite the benchmark indices’ weakness. The Nifty Midcap Select index gained 0.68 per cent, while the Nifty Next 50 rose 0.65 per cent. Market breadth remained positive, with 2,548 stocks advancing against 1,417 declines on the BSE. Notably, 67 stocks hit 52-week highs, while 59 touched their 52-week lows.

In currency markets, the Indian rupee weakened below 87.40, down by 0.35 rupees. “Despite the dollar index easing below 108$ in recent days, rupee weakness persisted due to trade uncertainty and continued FII outflows,” noted Jateen Trivedi of LKP Securities.

Gold markets continued their bullish run, with MCX gold surging ₹950 higher to trade above ₹84,750. “Investors remain cautious ahead of Friday’s U.S. unemployment and non-farm payroll data, which will be key for market direction,” added Trivedi.

Looking ahead, Rupak De of LKP Securities maintains an optimistic outlook: “The trend continues to favor the bulls as the index remains above the critical moving average. On the higher end, the index may continue to move towards 24,050 in the near term.”

“Markets mirrored weak global cues and ended lower amid selling in select banking, auto, realty and FMCG stocks. However, the broader markets along with other sectoral stocks bucked the trend as investors lapped up mid and small-cap stocks after the recent sell-off,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

Ajit Mishra, SVP Research at Religare Broking, advised investors to focus on stock selection: “With all key sectors contributing to the rally on a rotational basis, traders should focus on stock selection and prioritize accumulating fundamentally strong stocks during dips.”

The banking sector showed moderate weakness, with the Nifty Bank index declining 0.37 per cent to close at 50,343.05, while the Nifty Financial Services index fell 0.19 per cent to 23,664.40. In a notable development, shares of MTNL hit the 20 per cent upper circuit limit at ₹57.21, driven by optimism surrounding its asset monetization plans for FY26.