Benchmark indices ended lower on Wednesday amid selling pressure in realty and consumer-facing shares due to profit booking. The Sensex declined 312.53 points, or 0.40%, to 78,271.28, while the Nifty fell 42.95 points, or 0.18%, to 23,696.30, as these indices failed to sustain the previous day’s rally.
On Tuesday, both indices had surged 1.81% and 1.62%, respectively, reacting to the easing of trade war concerns after US President Donald Trump deferred a 25% tariff on imports from Mexico and Canada.
Outperforming the benchmark indices, the broader market continued its winning streak for the second consecutive day. The BSE Midcap index rose 0.69%, while the BSE Smallcap index jumped 1.42% on Wednesday.
“The domestic market traded within a narrow range in negative territory. Investors are weighing the improved domestic outlook, buoyed by a favorable Budget, against lingering global uncertainties stemming from the tariff war,” said Vinod Nair, head of research at Geojit Financial Services.
While declining US bond yields and lower crude oil prices have supported market sentiment, the rupee’s depreciation could offset these gains, Nair added.
“Technically, after a positive opening, the market witnessed intraday selling pressure at higher levels. However, the short-term trend remains positive,” said Shrikant Chouhan, head of equity research at Kotak Securities.
The market breadth remained positive, with 2,551 gainers compared to 1,416 losers. Investors’ wealth grew by `1.68 lakh crore to `427.2 lakh crore.
Of the 21 sectoral indices on the BSE, 15 ended in the green. Realty, FMCG, and consumer durables were the top sectoral laggards, while oil & gas, services, and metals led the gainers.
The realty sector emerged as the top loser, falling 1.66% on Wednesday.
In the five sessions leading up to Budget day (Saturday), the BSE Realty index had surged 12.3%. Since then, the index has witnessed profit booking, slipping 0.42% on Monday and rising marginally by 0.35% on Tuesday.
The BSE FMCG Index fell 1.42% on Wednesday and declined 3.12% over the past three sessions, erasing the 2.91% gains recorded on Budget day. The FMCG sector had rallied after Finance Minister Nirmala Sitharaman announced major tax cuts to boost consumption.
The BSE Consumer Durables Index fell 1.21% on Wednesday,
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