Sensex slips 142 points, Nifty ends flat as auto and metal stocks support market

Indian stock markets ended Wednesday’s session on a mixed note, with benchmark indices closing almost flat after a day of cautious trading. While sectors such as auto, oil & gas, realty and PSU banks offered support, weakness in select heavyweight stocks kept gains in check.

The S&P BSE Sensex fell 141.90 points, or 0.19%, to close at 75,867.80. Meanwhile, the NSE Nifty50 slipped just 6.55 points, or 0.03%, to settle at 23,907.15.

Despite the muted close in headline indices, broader market sentiment remained steady, helped by gains in midcap stocks and strong buying in select sectors.

AUTO, OIL & GAS LEND SUPPORT

Sector-wise, oil & gas stocks emerged as the biggest winners of the day, followed by gains in auto, realty and PSU banking counters. Investors showed interest in these spaces, helping the market stay in positive territory for most of the session.

Among sectoral indices, Nifty Media jumped 3.05%, making it the top sectoral gainer. Nifty Metal rose 1.67%, while Nifty Auto gained 1.45%. On the other hand, Nifty IT slipped 0.25%, and Nifty FMCG edged lower by 0.17%.

MIDCAPS SHOWING STRENGTH DESPITE FII SELLING

According to Vinod Nair, Head of Research at Geojit Investments Limited, the market is currently moving within a narrow range, but midcap stocks are beginning to show renewed strength.

“Main indices remain range-bound, while midcaps have entered a new zone supported by recovering domestic inflows that are offsetting FII selling,” Nair said.

He added that improving hopes around a possible easing of tensions between the US and Iran are shaping investor expectations for earnings and valuations.

“This shift reflects expectations of an earnings and valuation reset as prospects for US–Iran peace improve. Although Q1FY27 may be soft, India’s strong macro fundamentals suggest that one weak quarter is unlikely to alter the broader outlook,” he said.

LARGE-CAP STOCKS MAY TURN ATTRACTIVE

Nair also noted that large-cap stocks are becoming more attractive at current levels as valuations have cooled.

“In the near term, large caps are becoming attractive as they trade below their long-term premium, and a revival in this segment is likely as FII selling eases based on developments in West Asia,” he added.

TOP GAINERS AND LOSERS

Among the day’s biggest gainers, Power Grid Corporation of India Ltd led the pack with a rise of 2.56%, followed by Eternal (up 2.54%), NTPC (2.14%), Tata Steel (2.04%) and InterGlobe Aviation, the parent company of IndiGo, which climbed 1.90%.

On the losing side, HDFC Bank dropped 2.63%, making it one of the top drags on the market. Infosys slipped 0.71%, while ITC declined 0.61%.

WHAT INVESTORS ARE WATCHING

For now, investors are keeping an eye on foreign investor activity, global geopolitical developments and early signs of corporate earnings performance.

While benchmark indices remain range-bound, strong domestic inflows continue to support broader market sentiment.