Sensex, Nifty Volatile as IT, Metal Stocks Weigh; Financials, Autos Aid Recovery

Highlights

• Sensex and Nifty trade mixed amid pressure from metal and IT stocks

• Financial and auto stocks provide upward momentum in later session

• Middle East tensions and crude oil levels add to global market unease

Indian equity benchmarks Sensex (NSE: SENSEX) and Nifty (NSE: NIFTY) displayed a volatile trading pattern on Wednesday, reversing early losses to edge into positive territory. The broader recovery was led by strength in financial and automobile sectors, even as metal and information technology stocks remained under pressure. Market sentiment remained cautious due to persistent geopolitical concerns in the Middle East and sustained firmness in global crude oil benchmarks.

Mixed Trends in Benchmark Indices

The BSE Sensex, after opening lower, showed signs of recovery through the session. A similar trajectory was noted in the NSE Nifty index, which initially declined but later moved closer to the flat line. The broader indices reflected the tug-of-war between sectors dragging and supporting the market. While financial and auto counters moved higher, segments such as IT and metals stayed in negative territory, exerting downward pressure on overall index performance.

Financial Stocks Support Market Movement

Several financial heavyweights contributed to the partial rebound in the indices. IndusInd Bank (NSE: INDUSINDBK), Axis Bank (NSE: AXISBANK), and HDFC Bank (NSE: HDFCBANK) played pivotal roles in cushioning earlier losses. Although Kotak Mahindra Bank (NSE: KOTAKBANK) and Bajaj Finance (NSE: BAJFINANCE) experienced weakness, gains in other large lenders provided overall sectoral support.

Auto Sector Shows Resilience

Auto stocks emerged as a supportive segment in intraday trade. Strength in demand outlook and sectoral momentum helped stocks in this group outperform during the session. Despite the broader uncertainty, positive sentiment around vehicle manufacturers helped keep the Nifty Auto index buoyant, aiding the recovery in benchmark indices.

IT and Metal Stocks Under Pressure

Information technology companies remained among the top laggards, tracking weak cues from global tech markets. Infosys (NSE: INFY) and HCL Technologies (NSE: HCLTECH) traded with a downward bias, limiting gains for the indices. Simultaneously, metal sector names such as Hindalco (NSE: HINDALCO) and Tata Steel (NSE: TATASTEEL) showed continued weakness due to concerns over global demand trends and commodity pricing.

Energy and Utilities Mixed

NTPC (NSE: NTPC) and Power Grid Corporation (NSE: POWERGRID) saw varied movements, with both stocks facing selling pressure in early trades. Elevated input costs and broader energy sector challenges influenced investor mood around these names. However, selective helped reduce losses in certain counters by mid-session.

Broader Market Sentiment Cautious

Overall market breadth remained subdued due to prevailing macroeconomic concerns and geopolitical developments. The uncertainty linked to ongoing Middle East conflicts and sustained high crude oil benchmarks contributed to investor hesitation. Global equity markets showed signs of risk aversion, which also fed into domestic trading sentiment.

Healthcare and Pharma Names See Interest

Sun Pharmaceutical Industries (NSE: SUNPHARMA) saw upward movement, offering support to the broader market. The Nifty Pharma index showed relative strength, with selective healthcare names attracting interest in an otherwise mixed session.