The domestic benchmark indices, the BSE Sensex and the NSE Nifty50, ended lower on the final day of the week as investors resorted to profit booking at higher levels. Outperforming the benchmark indices, the broader markets extended their gaining streak for the fifth straight session amid value buying by retail investors.

The BSE Sensex ended down by 200.15 points, or 0.24%, at 82,330.59, and the NSE Nifty50 settled lower by 42.30 points, or 0.17%, at 25,019.80.

In the boarder market, the Nifty Smallcap100 and Nifty Midcap100 indices rallied 1.86% and 0.94%, respectively.

"The market witnessed mild profit booking following a sharp rally in the previous session. Despite this, investor sentiment remained upbeat, with sustained momentum in mid- and small-cap stocks, as well as rate-sensitive sectors such as real estate, NBFCs, automobiles, and consumer durables,” said Vinod Nair, Head of Research, Geojit Investments Limited.

“Defence stocks also continued their upward trajectory, supported by a strong sectoral outlook. The optimism is being fuelled by expectations of imminent resolutions in US-China and India-US trade relations, which are easing concerns over a potential economic fallout,” he added. 

India VIX, the index that gauges the volatility in the markets, continued to fall, sliding by another 2% to 16.55 points. This indicates growing optimism in the market amid ease in geopolitical tensions and concerns about tariff wars as the U.S. initiated trade talks with China and India.

Among the BSE Sensex pack, 17 of 30 stocks ended in positive terrain, with Eternal (Zomato), Hindustan Unilever, Asian Paints, ITC, and Nestlé India leading the gainers' chart. Bharti Airtel, HCLTech, State Bank of India, Infosys, and Tech Mahindra were among the top losers, falling in the range of 0.8-3%.

Out of 4,126 stocks traded on the BSE, 2,616 shares advanced, 1,368 declined, and 142 remained unchanged.

The sectoral indices ended on a mixed note, with the Nifty IT, Metal, Pharma, and Healthcare settling in negative terrain with marginal losses. Meanwhile, Nifty Realty was the top performer, rising 1.6%.

Analysts view on market

Trading in the markets was lacklustre after Thursday’s surge and ended marginally lower, in the absence of any fresh triggers, said Ajit Mishra, SVP- Research, Religare Broking. “The tone remained subdued from the outset, with consolidation in heavyweight stocks across sectors capping the move throughout the session,” he said.

Mishra further said that more than the recovery in the benchmark index, the broad-based rebound has offered greater relief to market participants. “Sustained FII inflows and stable global markets are further contributing to the positive sentiment. We continue to maintain our bullish outlook and recommend focussing on selective stock-picking. Going forward, corporate earnings and global market trends will remain key factors to watch in the absence of any major event,” he said.

Technically, the Nifty remained in consolidation mode today, taking a breather after Thursday's rally. “The overall sentiment continues to stay firm, with sectoral themes playing out. Indicators and overlays are consistently pointing towards further strength in the short term. Any dips are likely to be bought into, with support placed at 25,000/24,800. On the higher side, a move above 25,120 could take the index towards 25,250/25,350," said Rupak De, Senior Technical Analyst at LKP Securities.  

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