The Indian equity indices closed on a negative note, as investors did not have fundamentals to track, leading to a weakened market sentiment. Globally, sentiments were supported by an upbeat session on Wall Street overnight amid growing expectations of a potential U.S. interest rate cut next month. The Sensex was down 313.70 points or 0.37% at 84,587.01, and the Nifty declined 74.70 points or 0.29% at 25,884.80. 

Adani Enterprises emerged as the top loser in today’s trade, dropping by nearly 3%, followed by Tata Motors Passenger Vehicles and Trent, which came down by 1.49% and 1.39% respectively. 

On the other hand, Bharat Electronics, Hindalco, and State Bank of India were the top gainers. BEL rose by 1.58%, Hindalco and SBI were up by 1.44% and 1.33% respectively. Dr Reddy’s Laboratories, which received approval from the European Commission for AVT03 (denosumab), a proposed biosimilar of Prolia and Xgeva, saw a rise of a marginal 0.8%. Prolia is a prescription medicine used to treat osteoporosis. 

The broader markets traded mixed, with the Nifty Midcap 150 and Nifty Smallcap 250 rising by 0.26%, while the Nifty 500 ended lower by 0.08%. Sector-wise, Nifty PSU Bank and Nifty Realty outshone the rest of the indices, rising more than 1.50% respectively. “Sectorally, buying interest dominated Realty, PSU Banks, Pharma, Healthcare and Metals, while weakness persisted in Media, IT, Consumer Durables and Oil & Gas counters,” a note from Ashika Institutional Equities read. 

Commenting on the Bank Nifty, Ponmudi R, CEO, Enrich Money, said, “Bank Nifty moved into a controlled consolidation phase after its recent strong run-up, displaying a healthy pause rather than weakness, as domestic banking fundamentals remained supportive with strong credit growth, stable balance sheets, and consistent institutional accumulation. However, global risk-off cues limited breakout conviction, keeping traders defensive near the highs.”

According to analysts, Nifty 50 opened on a firm footing but struggled to sustain momentum at the 26,020–26,050 resistance band. Every attempt to reclaim higher ground was met with supply, dragging the index back toward yesterday’s lows.

“The broader market continued to walk a tightrope between resilient domestic fundamentals and rising global headwinds. Persistent FII outflows and continuing weakness in the rupee against the dollar kept sentiment on edge. However, the sharp decline in inflation offered a meaningful domestic tailwind, reinforcing expectations that the RBI may adopt a more accommodative tone in upcoming policy cycles,” Ponmudi said.