Indian equity markets concluded lower for the third consecutive day due to ongoing geopolitical tensions, causing unease among investors. Selling pressure on automobile and oil marketing company stocks further dampened overall market sentiment. The Sensex fell by 102.20 points to 84,961.14, while the Nifty dropped 37.95 points to 26,140.75 at the end of trading.
A market analyst highlighted the need for a sustained move above 26,300 to boost upside momentum towards the 26,500 level. Conversely, a decisive break below 26,000 could lead to a short-term corrective phase towards the 25,900–25,800 zone. Despite recent weaknesses, global brokerage firm Morgan Stanley remains positive about the medium-term outlook for Indian equities.
Morgan Stanley has set a Sensex target of 95,000 by December 2026 in its base-case scenario, indicating a potential upside of approximately 13% from current levels. In a more optimistic bull-case scenario, the brokerage envisions the Sensex reaching 107,000, reflecting a gain of about 25%. Notable losers on the Sensex included Maruti Suzuki, Tata Motors, Power Grid, Hindustan Unilever, Asian Paints, and Tata Steel.
Conversely, Titan Company, HCL Technologies, Infosys, Tech Mahindra, and Sun Pharma witnessed buying interest, helping to mitigate the overall downside. The broader markets outperformed the main indices, with the Nifty Midcap 100 index rising by 0.45% and the Nifty Smallcap 100 gaining 0.39%. While auto and oil and gas stocks faced pressure, the Nifty Consumer Durables and Nifty IT indices saw gains, with the IT index surging by 1.87% during the session.
Market analysts noted that participants remained cautious amid global uncertainties, despite long-term forecasts suggesting potential upside in Indian equities. An analyst recommended a “buy-on-dips” strategy focused on large-cap themes in the current macro backdrop.
