The Indian benchmark indices snapped their four-day winning streak on Wednesday, ending in negative territory, as the session was marred by profit booking ahead of the second-quarter results.

The BSE Sensex declined 153.09 points, or 0.19%, to 81,773.66, while the Nifty slipped 62.15 points, or 0.25%, to 25,046.15. Barring the IT sector, all sectoral indices finished in the red. According to Bajaj Broking Research, notable weaknesses were witnessed in the Realty, Telecom, Pharma, Oil & Gas, Media, PSU Bank, and Auto sectors, which fell between 0.2% and 2%.

"Broader markets also witnessed selling pressure, with the Midcap index declining 0.73% and the Small-cap index shedding 0.52%, underscoring broader market weakness," it said. Bajaj Broking Research stated that going forward, while global cues will remain influential, the market focus is expected to shift toward domestic earnings, key macroeconomic indicators, and the momentum of the festive season.

According to Bajaj Broking Research, the Nifty index is likely to consolidate in the range of 25,200–24,800, thus forming a base after the recent upmove. "On the higher side only a move above Tuesday’s high of 25,220 would open further upside towards 25,400–25,500 in the coming week being the trend-line resistance connecting the major highs of June and September 2025."

Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, stated that the broader indices underperformed on Wednesday, with the Nifty Midcap 100 down 0.7% and the Smallcap 100 lower by 0.5%.

"Sectorally, most indices traded in the red, reflecting a cautious tone. Nifty IT was the top gainer (+1.5%), supported by optimism ahead of TCS’s second quarter results due tomorrow, while Nifty Consumer Durables rose 0.8%," he said.

On the other hand, Nifty Media (-1.7%) and Auto (-1.5%) were the major laggards. Jewellery stocks were in focus during the trading sessions as Titan reported 19% growth year-over-year in its domestic jewellery business. “Additionally, Base metals extended their upmove, with zinc and copper both gaining nearly 5% over the past week," he added.

On the institutional front, FIIs turned buyers with net inflows of ₹1,440 crore, while DIIs remained supportive, adding another ₹450 crore on Tuesday. "Globally, attention will turn to the U.S. initial jobless claims data due tomorrow. We expect markets to remain range-bound in the near term, tracking global cues and second-quarter earnings announcements."