India's benchmark stock indices were unable to sustain their intraday gains and closed Wednesday largely unchanged. Renewed tensions between the US and Iran dented investor confidence in the market.
The Bombay Stock Exchange's 30-share Sensex index rose by 694.25 points during the session, reaching 74,613.01. However, it gave back most of these gains by the close, finishing the day with a modest 64.42-point increase at 73,983.18.
The National Stock Exchange's 50-share Nifty index ended the day down 27.15 points at 23,214.95, fluctuating between 23,425.35 and 23,184.60 throughout the session.
Banking Stocks Lead Gains While Steel and Consumer Sectors See Losses
Among Sensex components, Hindustan Unilever, Axis Bank, Kotak Mahindra Bank, ICICI Bank, ITC, and HDFC Bank were the strongest performers. In contrast, Eternal Ltd., Tata Steel, Bajaj Finserv, and Titan were among the weakest stocks of the day.
The broader Asian market also showed weakness. South Korea's Kospi index fell 4.52%, Japan's Nikkei 225 dropped 1.89%, and both the Shanghai Composite and Hong Kong's Hang Seng indices closed in negative territory.
European markets traded in negative territory during the session, while US markets mostly closed lower on Tuesday. Another factor limiting investor risk appetite was selling by foreign institutional investors.
Official data showed foreign institutional investors sold shares worth 4,566.03 crore rupees on Tuesday. This outflow, combined with global uncertainties, increased pressure on Indian equities.
Market commentary highlighted that investors were particularly focused on tensions in the Middle East, with a weak global outlook narrowing recovery prospects. Brent crude oil also declined 0.20% to $91.27 per barrel.
The previous trading day had a different picture, with Sensex rising 394.50 points and Nifty gaining 119.10 points on Tuesday.
Thus, after the prior day's gains, Indian markets turned cautious again. The intraday volatility followed by a flat close underscored the ongoing impact of geopolitical risks on the stock markets.
