Sensex, Nifty end flat despite banking and financial sector boost

The S&P BSE Sensex added 10.31 points to close at 74,612.43, while the NSE Nifty50 lost 2.50 points to end at 22,545.05. 

In Short

• Banking and financial stocks rallied, but broader indices fell 1-1.7%
• Shriram Finance surged 5.18%, Bajaj Finserv gained 2.40%
• Global markets negative, US tariff policy uncertainty affects sentiment

Benchmark stock market indices erased gains from early trade to close flat on Thursday, despite a rally in banking and financial sector stocks.

The S&P BSE Sensex added 10.31 points to close at 74,612.43, while the NSE Nifty50 lost 2.50 points to end at 22,545.05.

Ajit Mishra – SVP, Research, Religare Broking Ltd said that markets traded dull on the monthly expiry day, closing nearly unchanged for the second straight session.

"After an initial uptick, Nifty quickly flattened, trading within a narrow range before settling at 22,545.05. Sectorally, a mixed trend persisted, with metals, banking, and financials performing well, while realty and auto remained under pressure. The broader indices underperformed, declining between 1% and 1.7%, further dampening sentiment," he added.

Among the gainers, Shriram Finance stood out with a surge of 5.18%, leading the positive performers. Bajaj Finserv followed with a solid gain of 2.40%, while Bajaj Finance added 2.03% to its value. Hindalco recovered with a rise of 1.78%, and Sun Pharmaceutical Industries rounded out the winners with a 1.76% increase.

On the losing side, UltraTech Cement took the biggest hit, plummeting 4.69%. Trent continued its downward trend with a significant drop of 3.63%, while Bajaj Auto declined by 2.65%. Auto stocks generally struggled today, with Tata Motors falling 2.09% and M&M dropping 2.08%.

Vinod Nair, Head of Research, Geojit Financial Services said that global market swayed negatively, and domestic broader market sentiment remained weak due to fresh uncertainty surrounding US tariff policies.

"Amid ongoing trade tensions, investors are also keeping a close watch on US and domestic GDP data for further indications of economic strength," he added.

Markets faced a broad-based selloff today with all three indices firmly in negative territory. The Nifty Smallcap100 bore the brunt of the decline, falling by 1.83%. The Nifty Midcap100 also retreated, dropping 1.43% as mid-sized firms struggled to maintain investor confidence.

"The past two sessions reflect indecision, likely due to oversold conditions. However, rotational selling across key sectors is not only limiting the rebound but also gradually dragging the index lower. As the new derivatives series begins, we maintain our view of using rebounds to initiate shorts in the index until a decisive trend reversal emerges. Meanwhile, stock-specific opportunities continue on both sides, so trades should be aligned accordingly," said Mishra.