Benchmark equity indices Sensex and Nifty ended slightly lower on Wednesday as investors remained cautious amid weakness in banking stocks and rising geopolitical tensions between the US and Iran.
The 30-share BSE Sensex declined 141.90 points, or 0.19 percent, to close at 75,867.80. The index started the day on a positive note but lost strength during the session due to selling pressure in financial shares.
The NSE Nifty also closed in the red, slipping 6.55 points, or 0.03 percent, to settle at 23,907.15.
Banking and financial stocks remained among the biggest laggards throughout the trading session. Shares of Oil and Natural Gas Corporation, HDFC Bank and HDFC Life Insurance were among the top losers on the Nifty index.
Sector-wise, the Nifty Financial Services, Nifty Bank and Nifty Private Bank indices ended lower as investors avoided heavy exposure to financial stocks.
Analysts said traders stayed cautious due to continued foreign institutional investor (FII) selling and uncertainty in global markets.
Iran Tensions Impact Market Mood
Investor sentiment was also affected by geopolitical concerns after reports of US strikes in southern Iran surfaced on Tuesday.
The developments came despite ongoing talks and expectations of a possible agreement between Washington and Tehran. Market experts said the situation has increased uncertainty in global financial markets and kept investors on edge.
Midcap, Smallcap Stocks Outperform
Despite weakness in frontline indices, broader markets showed strength. The Nifty MidCap index rose 0.42 percent, while the Nifty SmallCap index gained 0.15 percent.
Among Sensex gainers, Power Grid Corporation, Eternal and NTPC climbed over 2 percent each. Other gainers included Tata Steel, IndiGo, Maruti Suzuki, Titan Company and Asian Paints.
Key Levels To Watch
Technical analysts said the 23,800 zone remains an important support level for Nifty. A fall below this level may drag the index toward 23,600–23,500.
On the upside, the 24,000–24,100 range is expected to remain a strong resistance zone for the market.