Mumbai, India – The Indian stock market experienced a day of volatility on Tuesday, with the benchmark Sensex shedding over 50 points and the Nifty breaching the 25,950 mark. Selling pressure was largely seen in IT and private banking stocks, contributing to the overall market decline.
At the close of trading today, the Nifty 50 index slipped 108.65 points to close at 25,959.50, a 0.42% decrease. The Sensex dropped 331.21 points, or 0.39%, to close at 84,900.71.
The Information Technology and private banking sectors were major drags on the market. While specific reasons for the underperformance of these sectors weren't immediately clear, analysts pointed to profit booking after a recent rally and concerns over global economic headwinds as potential factors.
Broader market sentiment remained cautious as investors awaited further developments on key economic indicators and global cues. The market is anticipating the release of GDP data for the September quarter later this week. Economists and rating agencies are expecting strong numbers.
Despite the overall negative trend, some stocks managed to buck the trend. SBILIFE (+2.60%), TECHM (+2.42%), EICHERMOT (+1.62%), BAJAJ-AUTO (+1.38%), and WIPRO (+1.21%) posted gains.
The market breadth was weak, with 39 stocks declining and only 11 advancing.
Market analysts suggest that the current market texture is volatile, recommending level-based trading strategies for day traders. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that 85,000 would act as a trend decider level for the Sensex. As long as the Sensex trades below this level, weak sentiment is likely to continue, potentially dragging the index down to 84,700-84,500. A move above 85,000, however, could trigger a bounce back to 85,500-85,700.
Nifty derivatives data indicates significant call writing at the 26,000–26,100 strikes, suggesting supply pressure at higher levels. Put open interest (OI) buildup around 25,800–25,900 confirms strong demand and support near the lower band, according to Hitesh Tailor, Research Analyst at Choice Equity Broking.
Global cues were mixed, with Asian stocks tracking overnight gains in the US markets. However, concerns over fluctuating foreign flows and progress on India-US trade talks continue to weigh on investor sentiment.
The rupee, meanwhile, weakened against the US dollar, reflecting the overall risk-off sentiment in the market.
Investors are advised to remain cautious and closely monitor global cues, economic data releases, and sector-specific developments for further direction.
