Indian equity benchmarks closed Wednesday’s session on a cautious note, with the Sensex falling over 100 points and the Nifty slipping below 26,200. The markets opened flat and witnessed mixed trading, as investors weighed optimism from stronger-than-expected US economic data against concerns over foreign fund outflows and thin year-end volumes.
On the sectoral front, IT and pharma stocks faced selling pressure, while banking, financials, metals, media, and realty shares demonstrated resilience, supporting broader indices. Market participation remained uneven, indicating a phase of consolidation rather than a strong directional move. Investors appeared cautious, rotating funds toward defensive and value-oriented stocks amid uncertainties.
Analysts noted that while global cues provided intermittent support, domestic markets were tempered by liquidity constraints and profit-booking ahead of the year-end. Overall, the session reflected a wait-and-watch approach, with investors positioning carefully amid a mix of positive global indicators and domestic caution. Market momentum remained subdued, suggesting that any decisive trend may depend on upcoming macroeconomic data and foreign institutional activity in the final days of 2025.
