Mumbai’s bustling stock market kicked off Wednesday’s trading session on a subdued note, reflecting shaky global sentiments. The benchmark Sensex index slipped 167.99 points, or 0.20%, to hover around 82,012.48 by 9:22 AM, while the Nifty50 shed 24.35 points, or 0.10%, trading at 25,208.15.
Most sectoral indices on the Nifty remained in the red during early hours. The broader market saw sharper declines, with the Nifty Midcap index down 0.36% and the Nifty Smallcap index falling 0.47%.
A few sectors bucked the trend. The Nifty Pharma index posted a modest 0.8% gain, followed by gains in Nifty Metal (0.3%), Nifty Auto (0.2%), and Nifty FMCG (0.16%). However, Nifty Realty tumbled 0.7%, and Nifty Private Bank declined 0.3%.
In the Sensex pack, heavyweights like ICICI Bank, BEL, HCL Tech, Trent, Infosys, L&T, and TCS led the downturn. On the flip side, Eternal, Indigo, Sun Pharma, Powergrid, UltraTech Cement, Tech Mahindra, Tata Steel, HUL, and Adani Ports saw buying interest.
Market analysts attribute the caution to Tuesday’s sharp drop, which has eroded investor confidence. Volatility remains high, with key support levels under pressure.
From a technical standpoint, the Nifty faces immediate resistance at 25,350-25,400. A sustained move below this could cap upside potential. On the downside, 25,050-25,100 acts as crucial support; a breach might trigger a slide toward 24,900-24,800.
Investor sentiment is also swayed by fund flows. Foreign Institutional Investors (FIIs) continue aggressive selling, piling pressure on the markets. Domestic Institutional Investors (DIIs) are countering with selective buying to cushion the fall. The India VIX surged, signaling heightened volatility ahead.
Traders are advised to stay vigilant, prioritize risk management, and await stabilization near major supports before fresh positions. Long-term investors might find opportunities in dips, but short-term plays demand caution in this uncertain environment.