Stock market: Sensex settles 78 pts lower, Nifty at 25,815; what’s next?

Domestic equity benchmarks Sensex and Nifty extended their losing streak to a fourth straight session on Thursday, ending lower after a choppy session. Investor sentiment remained cautious amid lingering uncertainty over a possible US-India trade agreement, while selling pressure in heavyweight counters such as Sun Pharma and Tata Steel added to downside pressure.

At closing bell, the Sensex declined 77.84 points, or 0.09%, to settle at 84,481.81, while the Nifty closed mostly flat, three points or 0.01% lower, to finish at 25,815.55.

Sun Pharma emerged as top loser on the Sensex, falling 2.74% to Rs 1,746. Tata Steel followed with a 1.26% decline, while Power Grid, Asian Paints, NTPC and Bharti Airtel Cement dropped 1.15%, 0.89%, 0.82% and 0.79%, respectively. 

Five stocks, namely HDFC Bank, Sun Pharma, Bharti Airtel, L&T and M&M, contributed heavily to the Sensex’s fall.

Among sectoral indices, the BSE Energy index declined 0.48% to close at 11,855.12, while the BSE Auto also dropped 0.54% to settle at 60,782.03.

Overall, of the 4,332 actively traded BSE stocks, 1,644 closed higher, 2,498 declined, and 190 remained unchanged. During the session, 95 stocks touched their 52-week highs, while 276 fell to 52-week lows. Meanwhile, 165 scrips hit their upper circuits, and 169 were locked in lower circuits.

Vinod Nair, Head of Research at Geojit Investments Limited, said domestic equities saw a choppy trading session amid muted global cues, with large-cap stocks underperforming as mid- and small-cap shares showed relative resilience. 

“After three consecutive declines, early gains were supported by value buying and a rupee recovery aided by central bank intervention. However, lingering uncertainty over a potential U.S.–India trade deal dampened sentiment, prompting profit-booking later in the day. Sector-wise, IT and financial services attracted investor interest, while auto, oil & gas, chemicals, and pharma witnessed notable weakness. Looking ahead, markets will focus on U.S. core inflation and jobless claims data, alongside interest rate decisions from the BoE, ECB, and Bank of Japan, for clearer directional cues,” Nair said.

Ajit Mishra, SVP–Research at Religare Broking Ltd, said the markets remained range-bound and closed on a flat note, reflecting a continuation of the ongoing consolidation phase. Adding, “after a muted start, the Nifty attempted a recovery during the first half of the session but failed to sustain higher levels and gradually drifted lower as the day progressed, eventually settling at 25,815.55.”

“Sectoral trends remained mixed, with selling pressure evident in energy, auto and pharma, while IT showed strength and financials and metals witnessed selective participation. The broader markets also remained volatile but managed to close on a flat note, reflecting selective market participation,” Mishra said.