The Indian share market experienced a range-bound and negatively biased session on the weekly expiry day, tracking weak cues from global peers amid concerns over potential U.S. involvement in the Middle East conflict, adding a layer of geopolitical risk to investor calculations. The sentiment was further dampened by the U.S. Federal Reserve’s decision to keep interest rates unchanged while signalling persistent inflation and slower economic growth, which dragged IT stocks lower.

Continuing its losing streak for the third straight session, the BSE Sensex lost 82.79 points, or 0.10%, to settle at 81,361.87. Similarly, the NSE Nifty50 closed at 24,793.25, down 18.80 points or 0.08%. 

The broader market witnessed a surge in selling, with the Nifty Midcap100 and the Nifty Smallcap100 indices falling by 1.63% and 1.99%, respectively. 

“Broader market performance lagged the benchmark index, influenced by selling in mid- and small-caps, while better stability was noticed in large-cap growth stocks, keeping a close watch on crude oil prices and global developments," said Vinod Nair, head of research, Geojit Investments.

On the sectoral front, most indices ended in the red, with the Nifty PSU Bank index emerging as the top laggard by falling over 2%. Nifty metal, media, and realty indices were among other notable losers, falling by more than 1% each. Bucking the trend, the Nifty Auto index ended higher by 0.5%, led by Eicher Motors, Mahindra & Mahindra, and Bajaj Auto.

“The strength in the benchmark index does not reflect the underlying market tone, as we are witnessing gradual profit booking across sectors and in the broader market,” said Ajit Mishra, SVP-Research, Religare Broking.

Mishra said that geopolitical tensions could drive crude prices higher, and further deterioration is likely if crude makes a sustained move above the $80 mark. He reiterated a cautious view and advised investors to closely monitor positions until they see further clarity.

Top gainers and losers

Of the 30 constituent stocks of the Sensex, 19 ended in negative terrain, weighed down by Adani Ports, Bajaj Finance, Tech Mahindra, IndusInd Bank, and Nestlé India falling in the range of 2.6% to 1.3%.

On the other hand, Mahindra & Mahindra, Titan Company, Larsen & Toubro, Bharti Airtel, and Maruti Suzuki India were the Top 5 gainers, rising in the range of 1.7% to 0.45%.

Nifty witnesses lacklustre expiry

The Nifty witnessed a lacklustre expiry on the NSE, as the index remained within a narrow range throughout the session, indicating indecisiveness ahead of any directional move, said Rupak De, Senior Technical Analyst at LKP Securities.

On the daily chart, the index has slipped below the 21-EMA (Exponential Moving Average), further reinforcing the bearish outlook. “This negative sentiment is likely to persist as long as the index remains below 24,850. On the downside, support is seen at 24,550," De said.

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