The benchmark equity indices ended Tuesday’s trading session in negative territory. The NSE Nifty 50 declined 291.70 points or 1.25% to settle at 23,053.05, while the BSE Sensex plunged 1,071.98 points or 1.39% to end the day at 76,001.46.
Following the market breadth, the broader indices closed the counter lower on Tuesday, the Nifty Midcap 100 closed the session 2.31% lower at 53,834.95.
Sectoral Index
Among the sectoral index, the Nifty Realty and Consumer Durables underperformed the most, closing over 4% lower.
The Bank Nifty index shed 779.90 points or 1.58% to close at 48,570.90. In the broader markets, small-cap and mid-cap stocks bled the most. However, the volatility index India VIX surged 3.89% to 17.06 level.
Trent (6%), NTPC (3.44%), Adani Ports (3.3%), ICICI Bank (2.8%), and Adani Enterprises (2.7%) were the major losers in the Nifty 50. Meanwhile, Apollo Hospitals, Tata Consumer Products, BPCL, Shriram Finance, and JSW Steel were the top gainers in the Nifty 50.
“We expect markets to remain under pressure in the near term amid mixed quarterly earnings and heavy FPI selling,” said Siddhartha Khemka, Head of Research and Wealth Management at Motilal Oswal Financial Services.
“This decline signals a resumption of the negative trend following a brief consolidation phase, with the Nifty index likely to move towards the 22,700 level. Persistent selling by FIIs and a lackluster start to the earnings season are key factors dampening market sentiment,” said Ajit Mishra, Senior Vice President of Research at Religare Broking. Additionally, the recent uptick in the volatility index, India VIX, is contributing to the prevailing cautious outlook. “Given these conditions, we recommend adhering to a “sell on rise” strategy in the Nifty index while emphasizing robust risk management practices,” added Mishra.
Donald Trump’s remarks targeting BRICS nations, reiterating his intention to impose 100% tariffs on countries reducing their reliance on the US dollar for global trade, induced negative sentiments in the Indian market, said Khemka.
Key levels to watch
“We are of the view that, as long as the market trades below 23,100/76,000, the weak sentiment is likely to continue,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
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