Indian equity benchmark indices closed lower for the third consecutive session on Wednesday, as heightened geopolitical tensions continued to weigh on investor sentiment and kept market participants away from riskier assets.

Market Performance Overview

Despite the negative closing, the indices managed to recover most of their losses during the trading session, demonstrating resilience in a volatile market environment. The recovery was attributed to selective buying activity in some of the market's heavyweight stocks, which helped cushion the overall decline.

Key Market Drivers

The primary factor influencing Wednesday's trading was the ongoing geopolitical uncertainty, which has been a persistent concern for investors over the past three sessions. This uncertainty has led to a cautious approach among market participants, with many choosing to avoid riskier investments.

Traders noted that while the broader market sentiment remained subdued, strategic buying in select large-cap stocks provided some support to the indices, preventing deeper losses during the session.

Trading Session Characteristics

The session was marked by significant volatility, with indices experiencing substantial intraday movements before settling at lower levels. The ability of the markets to recover from their session lows highlighted the underlying buying interest in quality stocks, even amid the prevailing uncertainty.

Indian stock markets closed lower on Tuesday, January 13, as investor sentiment remained subdued ahead of the anticipated US-India trade talks. The decline came after markets had taken a breather, with traders adopting a cautious stance in response to the upcoming bilateral discussions.

Sector-wise Performance

The market selloff was primarily concentrated in specific sectors, with consumer durables and realty stocks bearing the brunt of the decline. These sectors experienced significant selling pressure as investors moved to book profits ahead of the trade talks.

Market Sentiment

The cautious approach adopted by market participants reflected concerns about potential outcomes from the US-India trade discussions. Profit booking activities were observed across various segments as traders preferred to reduce their exposure before the crucial bilateral meetings. The overall market atmosphere suggested that investors were taking a defensive position while awaiting clarity on trade-related developments.