Equity benchmarks edged lower in midday trading on Thursday as investor sentiment remained cautious amid F&O expiry volatility and ongoing concerns over US tariffs. The benchmark Sensex traded at 74,579.20, down 22.92 points or 0.03 per cent from its previous close, while the Nifty declined 27.65 points or 0.12 per cent to 22,519.90.

Market breadth remained significantly negative with 2,866 stocks declining against 917 advances on the BSE. The number of stocks hitting 52-week lows far outpaced those reaching 52-week highs, with 344 scrips touching their yearly lows compared to just 44 stocks reaching new highs.

Circuit filters were triggered for numerous stocks, with 318 companies hitting lower circuit limits, while 116 touched their upper circuits, indicating heightened volatility across the broader market.

Among sectoral indices, banking and financial services showed resilience. The Nifty Bank index gained 262.25 points or 0.54 per cent to trade at 48,870.60, while the Nifty Financial Services index rose 176.75 points or 0.77 per cent to 23,212.80. However, midcap stocks faced selling pressure with the Nifty Midcap Select index falling 147.55 points or 1.33 per cent to 10,907.80.

Shriram Finance led the gainers pack on the NSE, surging 4.71 per cent to ₹601.30, with substantial trading volume of over 93 lakh shares. Other significant gainers included Bajaj Finance (up 2.27 per cent), Bajaj Finserv (up 2.11 per cent), IndusInd Bank (up 1.65 per cent), and Axis Bank (up 1.27 per cent).

On the downside, UltraTech Cement witnessed the steepest decline, dropping 4.92 per cent to ₹10,424.35. Other major losers included Hero MotoCorp (down 2.57 per cent), Trent (down 2.23 per cent), BPCL (down 2.19 per cent), and M&M (down 2.02 per cent).

Technical analysts note that the Nifty continues to test key support around the 22,500 level. Market participants remain watchful of global cues, particularly crude oil price movements and the persistent foreign institutional investor (FII) selling that has been pressuring domestic equities.

Trading activity is expected to remain choppy through the remainder of the session as February derivatives contracts expire today. Investors are also keeping an eye on pharma stocks following recent USFDA approvals, and oil marketing companies as they potentially benefit from falling crude prices.