Final Trade: D-Street ends in red as Sensex sinks 729 pts, Nifty closes at 23,487

Following a seven-day winning spree, Indian benchmark indices closed lower on Wednesday after investors cashed out from banking and IT shares. The BSE Sensex dropped 728.69 points, or 0.93 per cent, to close at 77,288.50, while Nifty 50 lost 181.80 points, or 0.77 per cent, to settle at 23,486.85. The intraday low of the Sensex was 77,194.22, down 822.97 points.

During the last seven sessions, the Sensex had jumped 4,188.28 points, while the Nifty had risen 1,271.45 points, rising 5.67 per cent.

Banking, IT stocks drag indices lower

Add Zee Business as a Preferred Source

Profit-taking in heavyweight sectors dragged the indices. NTPC, Tech Mahindra, Zomato, Axis Bank, Bajaj Finance, Infosys, Maruti, SBI, Kotak Mahindra Bank, Reliance Industries, HUL, and HDFC Bank were among the top losers. IndusInd Bank, HCL Tech, Titan, Mahindra & Mahindra, and Power Grid were the gainers.

"The market saw profit-booking following the recent up move, with caution prior to next week's U.S. tariff announcements. Sectors with high U.S. exposure, such as IT and pharma, witnessed selling pressure," said Vinod Nair, Head of Research at Geojit Financial Services.

Global cues add to volatility

Asian markets closed mixed, with Seoul, Tokyo, and Hong Kong higher while Shanghai closed in the red. European markets were lower, following Tuesday's strong gains in the U.S. markets. In the meantime, Brent crude prices increased 0.58 per cent to USD 73.44 a barrel, keeping inflation fears in the air.

Technical outlook: Nifty at a key support level

Ajit Mishra, SVP – Research, Religare Broking highlighted, "Markets declined after a brief pause, shedding over half a per cent amid mixed cues. Following an initial uptick, Nifty remained range-bound in the first half, but profit booking in select heavyweights dragged the index lower as the session progressed. Eventually, it closed near the day’s low at 23,486.85. All major sectors moved in line with the benchmark, with realty, IT, and pharma emerging as the top laggards. The broader indices also extended their decline, falling between 0.7% and 1.2%.

Participants are booking profits ahead of the March derivatives contract expiry, while concerns over tariff discussions continue to weigh on sentiment. On the technical front, Nifty is approaching its key support zone near the major moving averages ribbon around 23,400. A decisive hold at this level could trigger the next leg of the uptrend; otherwise, the consolidation phase may persist. Despite prevailing challenges, we maintain a positive market outlook and recommend a stock-specific approach, focusing on those demonstrating relative strength."

Analysts, even though facing the temporary setback, remain positive about Indian equities as they see good domestic fundamentals and foreign flows sustaining stability in the sessions to come.