Sensex, Nifty settle mixed; is this indication of a consolidation phase?

Indian equity benchmarks settled on a mixed note on Wednesday amid a highly volatile trading session. The 30-share BSE Sensex pack slipped 40.28 points or 0.05 per cent to close at 84,233.64. In contrast, the NSE Nifty50 index rose 18.70 points or 0.07 per cent to end at 25,953.85.

The broader market ended marginally higher. The Nifty Midcap index edged up 0.03 per cent, while the Nifty Smallcap index gained 0.02 per cent.

Vinod Nair, Head of Research at Geojit Investments, said, “Domestic equities may enter a brief consolidation phase following this week’s strong rally driven by the US–India trade deal. Market attention has shifted back to mixed Q3 results, upcoming monthly inflation data, and finer details of the trade agreement, which is reportedly nearing finalisation. Strength in auto and healthcare sectors reflects better-than-expected earnings, while IT underperformed amid a global sell-off linked to AI-related volatility. Broader markets lagged, with Midcap and Smallcap indices posting modest declines.”

Nair added, “Globally, sentiment stayed cautious due to weak US retail sales and persistent AI-related disruptions, keeping investors risk-averse ahead of key US employment data. Meanwhile, domestic markets have begun to benefit from improving FII flows, which have turned positive and are expected continue due to upside in GDP forecast and moderation in India’s valuations.”

Echoing a cautious yet constructive undertone, Ponmudi R, CEO of Enrich Money, noted, “Volatility remained contained, and the broader undertone continued to stay constructive. Steady domestic institutional participation, selective earnings-driven buying and signs of stabilising FII flows are providing structural support to the market. However, the upside remains capped in the absence of a decisive breakout or fresh positive triggers.”

Ponmudi also said, “Sectoral trends were mixed, with banking, auto and healthcare stocks posting strong gains, while IT witnessed broad-based selling pressure, emerging as a key drag on the benchmark indices. Stability in the USD/INR pair is offering macro comfort and helping avert any sharp risk-off reaction. Overall, sentiment remains cautiously optimistic—resilient beneath the surface, yet awaiting a stronger directional catalyst.”

From a technical standpoint, Rupak De, Senior Technical Analyst at LKP Securities, said, “Nifty50 faced resistance at 26,000, resulting in a correction from the day’s high. However, the short-term trend remains positive as it continues to hold above the immediate support at 25,800. A decisive move above 26,000 could trigger further upside toward higher levels. The technical setup remains bullish, supporting a positive bias.”