Sensex, Nifty dip in volatile trade as profit-taking hits banking stocks

Indian benchmark indices Sensex and Nifty experienced a volatile trading session, closing lower due to profit-taking in key banking and financial sectors, even as global cues and easing geopolitical tensions initially provided support.

Benchmark indices Sensex and Nifty closed down in a volatile session on Thursday due to profit-taking in banking and financial shares after a recent sharp rally.

Erasing its early gains, the 30-share BSE Sensex declined 122.56 points or 0.16 per cent to settle at 77,988.68.

The index opened higher and hit a high of 78,730.32 in late-morning trading.

However, profit-taking emerged at higher levels, dragging the index down to a low of 77,674.93.

The index gyrated 1,055.39 points during the session.

Market Performance Overview

The 50-share NSE Nifty dropped 34.55 points or 0.14 per cent to end at 24,196.75.

The two key indices had surged by more than 1 per cent on Wednesday following easing geopolitical tensions.

Sector Winners and Losers on Dalal Street

Among the 30-Sensex firms, HDFC Bank, Titan, Mahindra & Mahindra, Bharti Airtel, Kotak Mahindra Bank and Bajaj Finance were the major laggards.

Trent, Eternal, Adani Ports, Bharat Electronics and Infosys were among the major winners.

Global Cues and Investor Sentiment

Brent crude, the global oil benchmark, traded 1.51 per cent higher at $96.36 per barrel.

"Indian markets witnessed a volatile session today, reflecting a shift from directional momentum to consolidation after the recent sharp recovery.

"The index opened on a positive note, supported by improving global cues and easing geopolitical concerns, but failed to sustain higher levels as profit booking emerged through the day," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

From a macro perspective, sentiment remains sensitive to developments in the Middle East, he said.

"Initial optimism around a potential second round of US-Iran talks helped cool crude prices, offering some relief to inflation concerns.

"However, the market's inability to hold gains suggests that investors remain cautious and are not yet willing to chase the rally aggressively," Hariprasad added.

International Market Trends

In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended significantly higher.

Foreign Institutional Investors (FIIs) bought equities worth Rs 666.15 crore on Wednesday, according to exchange data.