Indian stock market ends slightly lower amid volatility

The Indian stock market ended Wednesday on a cautious note, with benchmark indices closing marginally lower in a volatile session as investors weighed mixed global cues and domestic factors.

At the close, the Sensex slipped 116.14 points, or 0.14%, to settle at 85,408.70, while the Nifty 50 fell 35.05 points, or 0.13%, to finish at 26,142.10.

Most sectoral indices ended in the red, except for media and metal. Information Technology , Oil & Gas , Pharma , and PSU Banks each lost around 0.4%, with the Nifty IT index emerging as the top laggard, falling 1%, following developments in the US H-1B work visa selection process.

The market opened flat to marginally lower ahead of the Christmas holiday, with continued Foreign Portfolio Investor (FPI) selling limiting upward momentum despite supportive domestic fundamentals.

Shrikant Chouhan , Head of Equity Research at Kotak Securities, said, "Benchmark indices faced selling pressure at higher levels. While selective financial stocks saw buying, the Capital Market Index declined nearly 1%. In the current market environment, intraday level-based trading remains the preferred strategy for traders."

Vinod Nair , Head of Research at Geojit Investments, added, "Indian equities remained largely sideways in a holiday-shortened week, with trading volumes subdued, reflecting broader trends across Asian markets. The RBI’s recent liquidity measures, including OMOs and USD/INR buy-sell swaps, are expected to stabilise currency volatility and improve systemic liquidity."

He further noted, "Globally, stronger-than-expected US GDP data highlights economic resilience, though rising unemployment tempers optimism. Gold extended gains on a weaker dollar and geopolitical concerns, while Brent crude hovered near multi-year lows, supporting a benign inflation outlook. Looking ahead, market activity is likely to remain muted, with investors closely monitoring trade developments."