Sensex, Nifty close marginally lower as IT stocks drag; IndusInd Bank rebounds 4.38% 

Benchmark indices ended marginally lower on Wednesday after a volatile trading session, with the IT sector weighing heavily on market performance while banking and auto stocks provided some support. The Sensex closed at 74,029.76, down by 72.56 points or 0.10 per cent, while the Nifty 50 slipped 27.40 points or 0.12 per cent to end at 22,470.50.

Markets opened on a positive note but faced selling pressure in the first half of the session before staging a recovery in the latter part of the day. The initial selloff was attributed to negative global cues, particularly concerns over U.S. trade policies following President Trump’s warning about potentially doubling tariffs on Canadian steel and aluminum.

“Despite negative cues from global markets, the Nifty opened flat at 22,536. The index registered its intraday high of 22,577 early in the session before witnessing a sharp decline, hitting an intraday low of 22,329. However, in the second half, Nifty staged a strong recovery, gaining approximately 140 points,” said Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity.

The IT sector was the major laggard, with heavyweights posting significant losses. Infosys fell sharply by 4.26 per cent to ₹1,590.85, Wipro declined 3.31 per cent to ₹268.55, Tech Mahindra dropped 2.77 per cent to ₹1,438.30, and TCS was down 1.93 per cent to ₹3,506.20. Nestle India also featured among top losers, falling 2.48 per cent to ₹2,195.50.

In contrast, banking stocks showed strength, with IndusInd Bank leading the gainers pack, surging 4.38 per cent to ₹684.70. This marked a significant rebound after a five-day losing streak following disclosures about discrepancies in its derivatives portfolio. “The full year won’t be a loss at all, and I believe Q4 will also be profitable. The bank will start seeing substantial profitability from Q1,” assured CEO Sumant Kathpalia.

Other top gainers included Tata Motors, which rose 3.12 per cent to ₹668.30, Kotak Mahindra Bank advanced 2.45 per cent to ₹1,982.55, Bajaj Finance gained 1.73 per cent to ₹8,484.45, and ITC added 1.53 per cent to ₹412.40.

Sectoral performance was mixed, with Nifty Bank rising 0.42 per cent to 48,056.65 and Nifty Financial Services gaining 0.54 per cent to 23,327.90. Meanwhile, Nifty Midcap Select fell 0.82 per cent to 10,911.65, reflecting broader market weakness.

Market breadth was negative, with 2,491 stocks declining against 1,494 advances on the BSE. A concerning 274 stocks hit their 52-week lows, while only 63 touched their 52-week highs.

“Market opened negative following selloff seen in global markets on account of tariffs threat. For the first part of the session, market traded in red but saw recovery in the second half again reiterating the fact that market participants are finding value at lower levels,” noted Bhavik Patel, Senior Research Analyst at Tradebulls Securities.

Vinod Nair, Head of Research at Geojit Financial Services, pointed to broader economic concerns: “Persistent uncertainties surrounding global trade and the fear of a U.S. recession continue to influence the domestic market’s momentum. Despite the stabilisation in valuation to the 5-year average and signs of improvement in urban and rural demand, investor risk appetite remains subdued.”

Technically, the market showed signs of support at lower levels. “On the daily chart, Nifty formed a red candle with a long lower shadow, indicating buying interest at lower levels,” observed Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates.

Rupak De, Senior Technical Analyst at LKP Securities, highlighted key support and resistance levels: “A multiple-bottom formation is observed around 22,300, making this level a crucial short-term support. On the higher end, it faces resistance at 22,500/22,600.”

The rupee remained stable against the dollar, trading flat near 87.22. “Rupee traded flat near 87.22, supported by weaker crude prices and a soft dollar index,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The expected trajectory of lower inflation at 2.9 per cent vs. 3.0 per cent in the US and 3.61 per cent vs. 4.31 per cent in India suggests a mildly supportive environment for the rupee.”

Investors now await key economic indicators, with both U.S. and India CPI data which could influence the trajectory of markets in the coming sessions.