Sensex, Nifty trade flat after 2-day tariff relief rally; Gensol shares tumble 5%

Benchmark stock market indices opened slightly lower on Wednesday after registering strong gains in the past two trading sessions.

The S&P BSE Sensex was down 84.98 points to 76,649.91 at 9:23 am, while the NSE Nifty50 fell 26.25 points to trade at 23,302.30. However, broader market indices did not see any major dip, and it is likely to provide relief to retail investors.

Another reason that will make investors happy is the fact that volatility has dipped further on Dalal Street.

Most of the Nifty sectoral indices were trading mixed. Some of the top gainers on the Nifty50 were Jio Financial Services, Apollo Hospitals, HDFC Life, Trent and Eicher Motors. On the other hand, the top losers were Maruti, Eternal, Sun Pharma, Bajaj-Auto and Tata Consumer Products.

Meanwhile, shares of Gensol Engineering tumbled 5% after the Securities and Exchange Board of India (Sebi) barred its promoters for diverting company funds for personal use.

On the broader market outlook, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, “Markets could see a gap down opening amid fall in other Asian gauges following sluggish close of US indices in overnight trades. The street continues to remain focused on escalating tensions between the US and China, as the US Commerce Department opened an investigation into semiconductor and pharmaceutical imports—raising the prospect of further tariffs.”

“However, positive factors such as inflation falling to 5-year low, hopes of above normal monsoon, and FIIs turning net buyers of local equities on Tuesday could provide some solace to investors already hit by the tariff uncertainty. For long-term traders, any move above Nifty’s 200-day average of 24054 will be a more reliable positive reference point,” he added.