Mumbai: Benchmark indices Sensex and Nifty closed slightly higher on Wednesday as gains in major stocks like ICICI Bank, Reliance Industries, and Eternal were partly negated by a sharp correction in IT shares due to weak global cues.
Investors turned cautious as profit booking emerged on select counters after the recent relief rally amid renewed optimism about the India-US trade deal, traders said.
After swinging between gains and losses throughout the session, the 30-share BSE Sensex ended 78.56 points or 0.09 per cent higher at 83,817.69. During the day, it touched a high of 83,947.53 and a low of 83,119.95, gyrating about 827.58 points.
A total of 2,726 stocks advanced, while 1,477 declined and 163 remained unchanged on the BSE.
The 50-share NSE Nifty went up by 48.45 points or 0.19 per cent to settle at 25,776.
“Sentiment stayed cautious amid mixed global cues and some profit-booking following the recent relief rally. Weakness in global technology stocks weighed on domestic IT counters, leading to sectoral divergence.
“At the same time, optimism surrounding the India-US trade agreement and expectations of improved foreign participation continued to support cyclical stocks and select heavyweight names,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.
From the Sensex firms, Eternal, Trent, NTPC, Adani Ports, Power Grid, Maruti, Reliance Industries and ICICI Bank were the biggest gainers.
Infosys, Tata Consultancy Services, HCL Tech and Tech Mahindra were the biggest laggards, declining as much as 7 per cent.
IT shares witnessed a sharp correction due to weakness in global technology stocks, as investors became cautious over concerns of overvaluation, which dented market sentiment, according to traders.
Among sectoral indices, IT tumbled 5.49 per cent, and the BSE Focused IT tanked 5.06 per cent.
On the other hand, Utilities climbed 2.72 per cent, oil & gas (2.37 per cent), consumer durables (2.36 per cent), power (2.18 per cent), energy (1.91 per cent), consumer discretionary (1.56 per cent) and metal (1.27 per cent).
“While Oil & Gas, consumer durables, metal and automobile stocks recorded strong gains, IT stocks faced sharp selling pressure, tracking weakness in global technology shares.
“Sentiment in the sector deteriorated after AI startup Anthropic unveiled an end-to-end workflow automation productivity tool, rekindling concerns that rapid advances in AI could disrupt traditional software business models and weigh on industry-wide profitability,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
The rupee depreciated 11 paise to 90.43 (provisional) against the US dollar on Wednesday.
Gold and silver prices extended gains as investors continued to shift funds into safe-haven assets amid global geopolitical uncertainties.
Precious metals extended their sharp rally for the second straight day in the national capital on Wednesday, with silver prices surging to Rs 2.98 lakh per kg, while gold rose to Rs 1.65 lakh per 10 grams.
Foreign institutional investors turned buyers on Tuesday as they bought equities worth Rs 5,236.28 crore, according to exchange data. Domestic Institutional Investors (DIIs) bought stocks worth Rs 1,014.24 crore.
India and the US have agreed on a framework for a trade deal under which Washington will bring down tariffs on Indian goods to 18 per cent from the current 50 per cent. The announcement is important because the US has imposed a steep tariff on Indian goods entering American markets, effective August 27, 2025.
In Asian markets, South Korea’s Kospi, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index ended higher. Japan’s Nikkei 225 index ended lower.
European markets were trading on a mixed note.
US markets ended lower on Tuesday. The Nasdaq Composite index tanked 1.43 per cent, the S&P 500 declined by 0.84 per cent, and the Dow Jones Industrial Average dipped 0.34 per cent.
“Domestic equities witnessed a volatile session, swinging between gains and losses as rising US-Iran tensions kept investors on edge. Mid-cap and small-cap stocks outperformed large caps as value buying emerged following a recent correction…market sentiment will largely be guided by the upcoming RBI policy decision and greater clarity on the newly announced US–India trade agreement,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Overall upside remained limited due to weakness in IT stocks amid concerns over reduced demand for traditional outsourcing following Anthropic’s introduction of new AI-driven automation tools, he added.
Brent crude, the global oil benchmark, advanced 0.36 per cent to USD 67.57 per barrel.
On Tuesday, the Sensex ended at 83,739.13, up 2,072.67 points or 2.54 per cent. The Nifty zoomed 639.15 points or 2.55 per cent to settle at 25,727.55.
