New Delhi, July 18 -- On Thursday the Nifty 50 declined 0.40%, weighed down by weakness in IT and BFSI stocks. Both the Sensex and Nifty erased early gains and turned negative by mid-day as investor sentiment turned cautious amid uncertainty around the future of US Federal Reserve chair Jerome Powell. Also, weak global cues, disappointing IT earnings, lack of clarity on the India-US trade deal, and continued FII outflows contributed to the sell-off.

Markets were volatile on the weekly expiry day and ended nearly half a percent lower amid mixed cues. The Nifty opened flat and gradually drifted lower through the session, with a brief mid-day rebound failing to hold. The index eventually settled near the day's low at 25,111, down 0.40%. IT,...