Sensex, Nifty Close Lower as Auto and Energy Stocks Weigh on Markets Despite IT Rally

Indian equity benchmarks ended Wednesday’s trading session in the red as cautious sentiment dominated Dalal Street, with losses in auto and energy stocks outweighing gains seen in information technology shares. Investors remained selective amid global uncertainties and ahead of key domestic and international economic cues.

The S&P BSE Sensex closed 102.20 points lower at 84,961.14, while the NSE Nifty50 slipped 37.95 points to settle at 26,140.75. Market breadth was mixed, reflecting a tug-of-war between sector-specific buying and profit-booking in heavyweight stocks.

IT stocks provided some support to the benchmarks during the session, buoyed by expectations of stable deal flows and defensive positioning ahead of upcoming global data releases. However, selling pressure in auto, energy, and select financial stocks dragged the indices lower, preventing a broader recovery.

Market participants adopted a risk-averse stance ahead of the third-quarter FY26 earnings season and key US labour market data, both of which are expected to influence global risk appetite. Concerns over foreign institutional investor (FII) flows also weighed on sentiment, as overseas investors continue to remain cautious amid global trade uncertainty and geopolitical developments.

Among the Sensex gainers, Titan Company led the rally, rising nearly 4 per cent on strong buying interest. IT majors also saw steady gains, with HCL Technologies advancing close to 2 per cent. Tech Mahindra and Infosys gained around 2 per cent and 1.7 per cent, respectively, reflecting investor preference for relatively defensive sectors. Sun Pharmaceutical Industries also ended higher, adding to the market’s limited support.

On the flip side, auto stocks witnessed notable selling pressure. Maruti Suzuki India emerged as the top laggard, falling nearly 3 per cent. Energy and infrastructure stocks also weakened, with Power Grid Corporation of India declining over 1.5 per cent. Tata Motors DVR, HDFC Bank, and Asian Paints also ended lower, adding to the pressure on the benchmarks.

Market analysts noted that profit-booking in autos and financials continues to cap upside in the indices, even as selective buying in IT, pharma, and mid-cap stocks provides intermittent support. Global factors, including China’s recent export curbs on rare earth materials, have further heightened supply-chain concerns, contributing to the cautious undertone in equities.

With multiple macroeconomic triggers lined up, including earnings announcements and global data releases, experts believe markets are likely to remain range-bound in the near term. In this environment, investors are expected to focus on stock-specific opportunities rather than broad-based rallies.

Overall, Wednesday’s session highlighted the fragile balance in Indian equities, where sectoral rotation and global developments continue to shape near-term market direction.