The barometer index, the S&P BSE Sensex, declined 148.14 points or 0.18% to 83,311.01. The Nifty 50 index fell 87.95 points or 0.34% to 25,509.70. In the past two trading sessions, Sensex and Nifty declined 0.79% and 0.98%, respectively.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index declined 1.19% and the S&P BSE Small-Cap index dropped 1.53%. The market breadth was weak.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, was down 1.91% to 12.41.

Among the sectoral indices, the Nifty IT index (up 0.18%), the Nifty Auto index (up 0.06%) and the Nifty FMCG index (down 0.19%) outperformed the Nifty 50 index.

Meanwhile, the Nifty Media index (down 2.54%), the Nifty Metal index (down 2.07%) and the Nifty Consumer Durables index (down 1.98%) underperformed the Nifty 50 index.

Economy:

The seasonally adjusted HSBC India Services PMI Business Activity Index stood at 58.9 in October, comfortably above both the neutral mark of 50.0 and its long-run average of 54.3. October data showed softer, although still substantial, expansions in Indian services output and new business. While factors like demand buoyancy and GST (Goods and Services Tax) relief reportedly led to an improvement in operating conditions, competition and heavy rains constrained growth.

HSBC India Composite PMI Output Index fell to 60.4 in October from 61.0 in September. There was also a weaker, albeit still substantial, upturn in aggregate sales. The rate of expansion was the softest in five months. For new orders and output, the slowdowns in growth were centred on the service economy as manufacturers actually registered quicker rates of expansion.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.37% to 6.506 from the previous close of 6.530.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 88.6100 compared with its close of 88.7700 during the previous trading session.

MCX Gold futures for 5 December 2025 settlement rose 0.52% to Rs 121,150.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.21% to 99.96.

The United States 10-year bond yield fell 0.48% to 4.139.

In the commodities market, Brent crude for December 2025 settlement advanced 45 cents or 0.71% to $63.97 a barrel.

Global Markets:

European shares declined as investors are awaiting central bank decisions from Norway and U.K. on Thursday

Asian shares ended higher on Thursday, tracking Wall Street gains after AMD’s third-quarter earnings beat, which lifted artificial intelligence (AI) stocks.

Overnight, the Dow Jones Industrial Average gained 225.76 points, or 0.48%, to close at 47,311.00. The S&P 500 rose 0.37% to finish at 6,796.29, while the Nasdaq Composite advanced 0.65% to settle at 23,499.80.

Investors were paying attention to the Supreme Court hearing Wednesday regarding President Donald Trump’s tariffs. At issue is whether the president had the authority to impose such duties under the International Emergency Economic Powers Act, or IEEPA.

The high court’s justices focused their questions on the legality of the sweeping tariffs, with both conservative and liberal members asking Solicitor General D. John Sauer about the Trump administration’s justification.

Equity investors received some encouraging data on the economy Wednesday with better ADP payrolls data and a stronger ISM services economy reading.

As per the ADP payroll data, companies added 42,000 jobs for the month, following a decline of 29,000 in September. A revision for September showed 3,000 fewer jobs lost.

Meanwhile, the ISM services index rose to 52.4%, up from September’s 50%, which is the breakeven point for overall expansion for the measure.