Mumbai’s benchmark indices ended the trading session in negative territory on Wednesday, dragged down by heavy selling in realty and auto sectors. The Sensex dropped 450 points to settle at 78,250, while the Nifty fell below 23,800, shedding 140 points.
Investors turned cautious ahead of key economic data releases, leading to broad-based profit booking. Realty stocks bore the brunt, with major players like DLF, Godrej Properties, and Macrotech Developers posting losses of 4-6%. The NIFTY Realty index plunged over 5%, reflecting concerns over high valuations and slowing demand.
Auto stocks also faced pressure as companies such as Tata Motors, Maruti Suzuki, and Mahindra & Mahindra declined 2-4%. Analysts pointed to weak festive season sales data and rising input costs as key factors weighing on the sector.
Banking and IT counters provided some cushion, but it wasn’t enough to stem the decline. HDFC Bank and Infosys saw marginal gains amid selective buying. Foreign institutional investors (FIIs) continued their selling spree, offloading shares worth ₹2,500 crore, while domestic funds offered limited support.
Market breadth remained weak with more decliners than advancers. Volatility spiked as the India VIX rose 3%. Experts suggest the pullback could be healthy after recent gains, but caution against further downside if global cues deteriorate.
Looking ahead, focus shifts to upcoming RBI policy minutes and US Fed signals. Traders are advised to stay vigilant amid mixed global signals from Wall Street and Asia.