Stock markets close lower on profit-taking in fincl shares

New Delhi

Stock markets closed lower in a volatile session on Thursday with the benchmark Sensex declining by 122 points and Nifty closing below 24,196.75, dragged by profit-taking in banking and financial shares after a recent sharp rally.

Erasing its early gains, the 30-share BSE Sensex declined 122.56 points or 0.16% to settle at 77,988.68. The index opened higher and hit a high of 78,730.32 in late-morning trading. However, profit-taking emerged at higher levels, dragging the index down to a low of 77,674.93. The index gyrated 1,055.39 points during the session. The 50-share NSE Nifty dropped 34.55 points or 0.14% to end at 24,196.75. The index moved between a high of 24,400.95 and a low of 24,102.80 during the session. The two key indices had surged by more than 1% on Wednesday following easing geopolitical tensions.

Among the 30-Sensex firms, HDFC Bank fell the most by 1.75%. Titan, Mahindra & Mahindra, Bharti Airtel, Kotak Mahindra Bank and Bajaj Finance were the major laggards. 

"Indian markets witnessed a volatile session today, reflecting a shift from directional momentum to consolidation after the recent sharp recovery. The index opened on a positive note, supported by improving global cues and easing geopolitical concerns, but failed to sustain higher levels as profit booking emerged through the day," Hariprasad K, research analyst and founder of Livelong Wealth, said.

From a macro perspective, sentiment remains sensitive to developments in West Asia, Hariprasad said. "Initial optimism around a potential second round of US-Iran talks helped cool crude prices, offering some relief to inflation concerns. However, the market’s inability to hold gains suggests that investors remain cautious and are not yet willing to chase the rally aggressively," he added.