The equity benchmarks ended marginally lower on Thursday as investors booked profits in select heavyweight stocks, even as broader markets continued to outperform.
The Sensex slipped 135 points, or 0.18 percent, to close at 75,183.36, while the Nifty 50 ended almost flat at 23,654.70, down just four points.
Selling pressure in heavyweights such as Reliance Industries, Bharti Airtel and Infosys weighed on the benchmarks.
Despite weakness in frontline indices, the broader market remained resilient. The BSE Midcap index gained 0.18 percent, while the BSE Smallcap index jumped 0.70 percent, indicating continued buying interest in broader market counters.
Among Sensex stocks, InterGlobe Aviation, Bharat Electronics and Trent emerged as top gainers. On the losing side were Bajaj Finance, Tech Mahindra and Hindustan Unilever.
Investor sentiment remained cautious as Brent crude prices climbed above $107 a barrel amid renewed geopolitical tensions in the Middle East and uncertainty surrounding a possible US-Iran agreement.
Concerns over rising crude oil prices have revived fears of higher inflation and the possibility of tighter monetary policy, keeping markets volatile.
Vinod Nair of Geojit Investments said domestic equities erased early gains as worries over possible RBI rate hikes and weak manufacturing PMI data outweighed optimism from softer crude prices earlier in the session.
According to Nair, uncertainty surrounding US-Iran negotiations, expectations of tighter domestic monetary policy and a weaker growth outlook continued to pressure investor sentiment.
He added that although small-caps remained resilient and sectors such as realty and healthcare witnessed selective buying, profit booking prevented the market from sustaining gains.
The rupee recovered 49 paise from its all-time closing low to settle at 96.37 against the US dollar on Thursday.
Meanwhile, reports quoting Ali Khamenei said Iran would not send its near-weapons-grade uranium abroad, adding another layer of uncertainty to the ongoing geopolitical situation.
Shrikant Chouhan of Kotak Securities said the Nifty’s immediate support zone is placed between 23,500 and 23,400, while 23,800-23,850 remains the key resistance range.
According to him, a breakout above 23,850 could lift the index towards 23,950-24,000 levels. However, if the index slips below 23,400, it may retest 23,250-23,200.
Sensex: 75,183.36 (-135 points)
Nifty 50: 23,654.70 (-4 points)
BSE Midcap: +0.18 percent
BSE Smallcap: +0.70 percent
Brent crude: Above $107 per barrel
Rupee: 96.37 against the US dollar
