Sensex and Nifty ended marginally lower on Thursday after surrendering early gains amid intensified late-session selling in FMCG, IT, and PSU banking stocks, as investors remained cautious over ongoing geopolitical uncertainty surrounding the US-Iran situation.

Key Highlights

• Sensex and Nifty erased early gains amid late selling in FMCG, IT, and PSU banking stocks.
• Market volatility remained elevated due to uncertainty surrounding US-Iran tensions and fluctuating crude oil prices.

The Sensex declined 114 points, or 0.15%, to close at 77,844.52 after touching an intraday high of 78,384.70, while the Nifty slipped 4.30 points to settle at 24,326.65, retreating from the day’s peak of 24,482.10.

Market sentiment turned volatile during the final hours of trade as investors booked profits in heavyweight stocks amid concerns linked to developments in the Middle East and uncertainty over the reopening of the Strait of Hormuz.

Among Sensex constituents, Hindustan Unilever emerged as the top laggard, declining nearly 2%, followed by Tata Consultancy Services, Tech Mahindra, Titan Company, Sun Pharma, and ITC Limited, which also ended lower. On the gaining side, Mahindra & Mahindra, NTPC Limited, and Kotak Mahindra Bank posted gains of up to 2%.

Vinod Nair, Head of Research at Geojit Investments said “Domestic equities swung between gains and losses amid mixed global cues. Easing crude oil prices due to optimism surrounding a possible US-Iran understanding helped contain inflation worries in the near term."

Also Read: Benchmark Indices: Sensex Surges 940 Points and Nifty Tops 24,300

Sectorally, IT, FMCG, and PSU banking indices witnessed selling pressure, while auto stocks outperformed. Broader markets remained resilient, with midcap and smallcap indices ending higher than benchmark indices.

Ponmudi R, CEO of Enrich Money noted, “Markets will remain highly sensitive to headline risk. Volatility would continue to depend on developments related to the Gulf conflict, particularly Iran’s response to the US peace proposal and the status of the Strait of Hormuz."

Analysts believe investor sentiment will remain cautious in the near term as geopolitical tensions, crude oil price fluctuations, foreign fund flows, and global macroeconomic developments continue to influence equity markets.