Indian equity benchmark indices ended lower on Wednesday but managed to recover a significant portion of intra-day losses, thanks to gains in PSU bank and financial stocks. Markets experienced notable volatility during the session, with heavy selling pressure in information technology stocks affecting investor sentiment.
Despite the initial decline, buying interest in PSU banks, private banks, and healthcare stocks helped the indices reduce losses from the day’s low. The Nifty concluded 0.33% lower at 23,405.60, while the Sensex dropped 0.41% to settle at 74,346.17.
Analysts highlighted that the key level to monitor is 23,500, as surpassing this zone could boost sentiment and lead to a recovery towards 23,600 and subsequently 23,800, where significant call-based resistance is evident. On the downside, the immediate support band is seen at 23,300–23,350, followed by the crucial demand zone of 23,150–23,200, which has proven resilient in recent sessions.
Among Nifty stocks, Apollo Hospitals Enterprise, Tata Motors Passenger Vehicles, InterGlobe Aviation, and Max Healthcare Institute were the top gainers. Conversely, Tata Consultancy Services (TCS), Tech Mahindra, and HCLTech were among the top laggards on the Sensex, significantly contributing to the index’s decline.
The Nifty IT index emerged as the worst performer sectorally, dropping over 5% during the session due to widespread weakness in technology counters. Conversely, the Nifty PSU Bank index recorded the most significant rise among sectoral indices, with the Nifty Bank, Nifty Private Bank, and Nifty Healthcare indices also outperforming the broader market.
In the broader markets, the Nifty MidCap index closed 0.42% lower, while the Nifty SmallCap index ended down 0.11%. Market participants remained cautious due to ongoing pressure in IT stocks, although gains in financial and healthcare sectors helped mitigate a steeper decline in the benchmark indices.
The Indian rupee faced a second consecutive session of decline, influenced by capital outflows and growing concerns over US President Donald Trump’s latest tariff proposals. An analyst noted that the spot USDINR encounters immediate resistance at 96.50, with key support at 95.10.
