Stock markets close lower on profit-taking

Stock markets closed lower in a volatile session on Thursday with the benchmark Sensex declining by 122 points and Nifty closing below 24,200, dragged by 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. The 50-share NSE Nifty dropped 34.55 points or 0.14 per cent to end at 24,196.75. The index moved between a high of 24,400.95 and a low of 24,102.80 during the session. The two key indices had surged by more than 1 per cent on Wednesday following easing geopolitical tensions.

Among the 30-Sensex firms, HDFC Bank fell the most by 1.75 per cent. 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. “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.

Broader markets closed higher with the BSE MidCap Select index climbing 0.86 per cent and the SmallCap Select index gaining 0.60 per cent. Sectorally, the trend remained mixed, with metals, IT, and energy stocks supporting the index, while banking and auto stocks faced some pressure.

“The domestic market opened positively but closed with a marginal loss on the weekly expiry day after a volatile session, as investors booked profits following recent gains. Markets remain watchful for clarity on the second round of US-Iran negotiations, which will guide the near-term trend,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

The session was largely influenced by evolving geopolitical developments, with optimism around potential progress in US-Iran peace talks, which helped stabilise crude oil prices, Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

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.

Markets in Europe were trading in positive territory. US markets ended mostly higher on Wednesday.

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

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

On Wednesday, the Sensex jumped 1,263.67 points or 1.64 per cent to settle at 78,111.24. The Nifty climbed 388.65 points or 1.63 per cent to end at 24,231.30.