Closing Bell: Nifty And Sensex End Mildly Lower Following Budget, PSU Banks Boost Nifty Bank

The Indian stock market closed with minor cuts as the Nifty 50 and Sensex erased opening gains after the Interim Budget announcement. The market indices witnessed fluctuations throughout the day, with PSU Banks lifting Nifty Bank, while midcap stocks faced a downturn.

The 10-year government bond yield fell from 7.14% to 7.05% as the government adhered to its fiscal glide path. Despite the initial optimism, the Sensex dropped 107 points to 71,645, and Nifty followed suit, losing 28 points to close at 21,697. However, Nifty Bank outperformed, rising by 192 points to 46,189, while the Midcap Index slipped 271 points to 48,298.

Public Sector Undertaking (PSU) banks played a pivotal role in the market's performance, helping Nifty Bank close higher. The fall in yield contributed to this positive trend in the banking sector.

Maruti Suzuki emerged as a gainer, witnessing a surge of over 4% on the back of robust Q3 earnings and record monthly sales in January. This performance significantly contributed to the sector's positive outlook.

Insurance stocks saw a modest rise of 1-3%, attributed to the absence of any new developments impacting the sector in the Interim Budget. Meanwhile, Godrej Consumer reported healthy Q3 results, becoming the top midcap gainer with an 8% increase in its stock value.

Shree Cements witnessed a 3% rise, contrasting with JSPL, which experienced profit booking despite a healthy Q3 performance. In contrast, India Cements faced an 8% slide as the Enforcement Directorate conducted searches in the company's offices.

Aurobindo Pharma faced a 7% slip as the US FDA conducted inspections at its Eugia-III unit. The uncertainty surrounding the inspection impacted the stock negatively.

Voltas, after gaining in the previous session following positive earnings, witnessed a reversal, closing down by 4%. The volatility in the Consumer Durables sector contributed to the mixed sentiment in the market.

Titan, the leading consumer goods company, reported in-line earnings for Q3, causing its stock to close in the red. However, the stock managed to recover from its lows during the day.

The market breadth favoured declines, with the advance-decline ratio at 1:1, reflecting the mixed sentiment among investors. This indicates a cautious approach as market participants assess the impact of the Interim Budget on various sectors.

The post-interim Budget market scenario witnessed a blend of positive and negative trends, causing both Nifty 50 and Sensex to close with minor cuts. While PSU banks and certain sectors like automobiles and insurance showed resilience, others faced challenges, notably the pharmaceutical and cement industries. Investors are now closely watching for further developments and corporate earnings reports to navigate the market landscape.