The Sensex and Nifty ended largely unchanged on Wednesday as threats of a new tariff imposition on Chinese goods by the United States hurt sentiment, but losses were curbed as technology stocks such as Tata Consultancy Services gained after posting a record quarterly net profit.

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The broader Nifty closed up 0.01 percent at 10,948.30, while the benchmark Sensex ended 0.07 percent higher at 36,265.93. In the broader market the BSE Midcap and the BSE Smallcap indices remained little changed.

Market breadth, indicating the overall health of the market, turned negative. On the BSE, 1,557 stocks declined, 1,064 stocks rallied, while 156 stocks remained unchanged.

"Improving outlook on IT index helped the market to keep its positive momentum while escalation in trade tensions between US & China capped the upside. Expectations of better Q1 result and decline in oil price will support market to prolong the current stability. Progressing monsoon & higher MSP gives leeway for consumption oriented sector to come to the limelight," said Vinod Nair, Head of Research, Geojit Financial Services.

While Tata Consultancy Services ended the session 5.6 per cent higher, metals and financial stocks were the biggest drag on the indexes. ICICI Bank ended 1.7 per cent lower, while Vedanta closed 3.5 per cent lower.

Meanwhile, domestic institutional investors (DIIs) net bought equities to the tune of Rs 293.96 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 20.73 crore yesterday, provisional data showed. 

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Overseas, Stocks fell and metals prices slumped to their lowest in a year on Wednesday, as US threats of tariffs on an additional $200 billion worth of Chinese goods pushed the world’s two biggest economies ever closer to a full-scale trade war.

Shanghai markets were hardest hit with stocks there down almost 2 per cent and the yuan weakening toward last week’s 11-month lows, down 0.4 per cent to 6.66 per dollar.

Hong Kong’s Hang Seng lost more than 1 per cent, as did Japan’s Nikkei as the yen received something of a safety bid.

Europe’s main bourses, also taken aback as Trump kicked off a NATO summit in Brussels by accusing Germany of being a “captive” of Russia, then saw similar falls.