Sensex snaps 4-day winning run, Nifty below 25,050; what dragged markets lower?

Domestic equity markets snapped their four-day winning streak on Wednesday, with both the Sensex and Nifty ending in the red. Selling pressure in stocks such as Tata Motors, Mahindra & Mahindra (M&M) and Bharat Electronics (BEL) dragged the indices lower, offsetting gains in Titan and Infosys.

At the closing bell, the Sensex slipped 153.09 points, or 0.19 per cent, to end at 81,773.66, while the Nifty50 declined 62.15 points, or 0.25 per cent, to settle at 25,046.15.

Tata Motors emerged as the top loser on Sensex, falling 2.41 per cent to Rs 681.30. M&M followed with a 1.91 per cent drop, while BEL, Ultratech Cement, Trent and Sun Pharma declined 1.67 per cent, 1.55 per cent, 1.46 per cent and 1.29 per cent, respectively.

Five stocks, namely, Reliance Industries, M&M, HDFC Bank, Tata Motors and State Bank of India, contributed heavily to the Sensex’s decline.

Tata Motors shares fell 2.41 per cent to close at Rs 681.30 after its subsidiary, Jaguar Land Rover (JLR), reported weak wholesale volumes for the second quarter of FY26.

Among sectoral indices, the BSE Auto index fell 1.35 per cent to 59,242.40, while the BSE Capital Goods index declined 1.20 per cent to 68,690.20.

Within the BSE 100 pack, Canara Bank and Hero MotoCorp hit fresh 52-week highs at Rs 128.65 and Rs 5,657.35, respectively.

Overall, out of 4,330 actively traded stocks on the BSE, 1,754 ended higher, while 2,418 declined and 158 closed unchanged. During the session, 161 stocks scaled their 52-week highs, whereas 144 slipped to 52-week lows. Meanwhile, 241 scrips were locked in their upper circuits and 167 in lower circuits.

Vinod Nair, Head of Research at Geojit Financial Services, said domestic markets witnessed a volatile session, weighed down by profit-booking after a sharp rally. “Investor caution dominated ahead of the Q2 earnings season, as market participants reassessed valuations and growth prospects,” he said.

“Sectoral trends were mixed — IT stocks outperformed on resilient demand and attractive valuations, while Auto, Banking, and FMCG faced profit-taking pressure. Heightened global uncertainties and the ongoing US government shutdown drove gold to a historical high, reflecting elevated risk aversion,” Nair said.

Nair said investors will now focus on the September FOMC minutes for cues on the US Federal Reserve’s policy outlook. “Going forward, while global developments remain relevant, market focus is likely to shift toward domestic earnings, macroeconomic data, and the upcoming festive season," he added.