The S&P BSE Sensex fell 153 points, or 0.19%, to close at 81,773.66, while the NSE Nifty 50 declined 62 points, or 0.25%, to finish at 25,046.15.
Top Movers
Financials fell roughly 0.5%, ending a six-session rally that had added 3%. The earlier run-up came after the Reserve Bank of India unveiled measures to boost bank lending and on upbeat pre-earnings updates from banks for the September quarter.
Auto stocks slipped 1.5%, led by a 2.4% decline in Tata Motors after its luxury arm, Jaguar Land Rover, projected lower second-quarter volumes.
Meanwhile, the IT index surged 1.5% ahead of Tata Consultancy Services’ quarterly results due Thursday, with TCS itself climbing 1.8%.
Reliance Industries retreated 1.3%, weighed down by profit-taking after a 1.6% gain over the previous two sessions.Jewellery retailer Titan rose 4.3% following a stronger-than-expected pre-quarterly update.Broader market segments also showed weakness, with small-caps falling 0.5% and mid-caps down 0.7%.
Expert views
National indices witnessed a volatile session, tempered by profit booking after a sharp rally and investor caution dominated ahead of the Q2 earnings season, as market participants reassessed valuations and growth prospects, said Vinod Nair, Head of Research at Geojit Investments.
“Heightened global uncertainties and the ongoing US government shutdown drove gold to a historical high, reflecting elevated risk aversion. Attention now turns to the September FOMC minutes for signals on the Fed’s policy stance. Going forward, while global developments remain relevant, market focus is likely to shift toward domestic earnings, macroeconomic data, and the upcoming festive season,” said Nair.
Global Markets
Global equities advanced on Wednesday as investors focused on the prospect of lower interest rates, brushing aside political turmoil in France and Japan. Meanwhile, a prolonged U.S. government shutdown sent gold soaring past $4,000 an ounce for the first time.
Expectations of a series of Federal Reserve rate cuts, combined with safe-haven demand amid economic and political uncertainty, have lifted gold by 50% this year. The rally, supported by central banks, fund managers, and retail investors, has also been aided by a weaker dollar.
European stocks gained 0.4%, with strength in banking and energy shares offsetting a 7% drop in BMW after the German luxury carmaker cut its 2025 earnings forecast.
U.S. stock futures were modestly higher, up 0.1-0.25%, suggesting further gains in New York trading.
Crude impact
Oil prices gained more than 1% on Wednesday, supported by OPEC+’s announcement of a smaller-than-expected production increase for next month, though concerns over a potential supply glut limited further upside.
Brent crude futures rose 82 cents, or 1.3%, to $66.27 a barrel by 0945 GMT, while U.S. West Texas Intermediate climbed 85 cents, or 1.4%, to $62.58.
Rupee vs Dollar
The Indian rupee held in a narrow range on Wednesday, closing at 88.7975 against the U.S. dollar, remaining above its record low even as the greenback gained. Traders cited likely intervention by the Reserve Bank of India to support the local currency.
The dollar index, which tracks the greenback against a basket of six major currencies, rose 0.31% to 98.88.
(With inputs from agencies)
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