Sensex Gives Up Day’s Gains, Nifty Settles Below 23,250 as Broader Markets Bleed

Indian equity markets ended a choppy session on a mixed note on Wednesday, with benchmark indices surrendering most of their early gains amid broad-based selling in the broader market.

While banking and FMCG stocks helped cushion losses, sharp declines in midcap, smallcap, metal and realty counters weighed heavily on investor sentiment.

The BSE Sensex closed 64.42 points higher at 73,983.18, but the headline index retreated more than 600 points from its intraday peak of 74,613.01. The NSE Nifty 50 settled 27.15 points lower at 23,214.95 after touching a high of 23,425.35 during the session.

The sharp pullback reflected cautious market positioning as investors reacted to weak global cues, persistent foreign institutional investor (FII) outflows and uncertainty surrounding key macroeconomic developments overseas.

Broader markets witnessed significant selling pressure, underperforming the benchmark indices. The Nifty Midcap 100 fell 1.49 per cent, while the Nifty Smallcap 100 declined 1.33 per cent. Losses were widespread across the broader market universe, with the Nifty Midcap 50, Smallcap 250 and Microcap 250 indices also ending deep in the red.

Among sectoral indices, FMCG stocks emerged as the standout performers. Gains in Hindustan Unilever and ITC helped the Nifty FMCG index rise 1.05 per cent. Private banking shares also attracted buying interest, pushing the Nifty Private Bank index up 0.72 per cent.

On the downside, media, realty and metal stocks bore the brunt of selling. The Nifty Media index plunged 2.36 per cent, while Realty and Metal indices declined 1.74 per cent and 1.70 per cent respectively. Oil & Gas and PSU Bank stocks also ended sharply lower.

Within the Sensex pack, Hindustan Unilever and Axis Bank led the gainers, followed by Kotak Mahindra Bank, ICICI Bank, ITC and HDFC Bank. On the losing side, Eternal, Tata Steel, Bajaj Finserv, Titan, Mahindra & Mahindra and HCLTech were among the major drags.

Market experts attributed the late-session weakness to a combination of global uncertainty and profit booking after recent gains.

Vinod Nair, Head of Research at Geojit Investments Limited, said investors remained cautious ahead of a crucial US inflation reading that could influence the US Federal Reserve’s future interest rate decisions. He noted that while easing crude oil prices and lower domestic bond yields offered some support, concerns over foreign fund outflows and geopolitical tensions continued to weigh on sentiment.

Ankur Punj, Managing Director and Business Head at Equirus Wealth, said volatility intensified towards the close amid weak global market trends. He added that sustained FII selling, coupled with concerns over a delayed monsoon, has kept investors on edge despite supportive factors such as softer crude prices and relative stability in the rupee.

The session ultimately highlighted the growing divergence between benchmark indices and the broader market, with profit booking in midcaps and smallcaps overshadowing strength in select large-cap banking and consumer stocks.