The Indian stock market had a mixed trading session on Wednesday, with the benchmark indices Sensex and Nifty 50 closing on a flat note. The Nifty IT index emerged as the top performer, rising 1.5% on the back of positive US economic data. The index was driven higher by gains in TCS, HCLTech, and L&T Technology Services.
The 30-share BSE Sensex ended higher by 149.85 points or 0.19% at 79,105.88 level, while the Nifty 50 closed at 24,143.75 level, up 4.75 points or 0.02%. On the broader market front, the Nifty Midcap 100 closed up 0.59%, while the Nifty SmallCap 100 closed 0.64%.
Despite the IT sector’s strong showing, the broader market sentiment remained cautious, with 13 out of the 14 key industry indices closing in the red. The Nifty Media and Nifty FMCG indices were among the top losers, declining by around 0.6% and 0.4%, respectively.
The domestic market experienced a restricted range of trading, despite a good rebound in global markets, according to Vinod Nair, Head of Research at Geojit Financial Services. The negative sentiment in the country and the possibility of profit downgrades made investors wary.
In the meanwhile, a drop in WPI inflation, primarily due to decreased food costs, indicates that the RBI is getting closer to its goal of price stability. The IT index slightly increased, indicating hope for better US CPI statistics that are anticipated later today, which may expand the Fed’s room to maneuver in its loose monetary policy, explained Nair.
The mixed performance can be attributed to a combination of factors, including global economic uncertainties and domestic macroeconomic concerns. Investors remained on the sidelines ahead of the Independence Day holiday on August 15, when the stock exchanges will remain closed for trading.
