Indian equity benchmark indices experienced a second consecutive decline, primarily due to significant losses in heavyweight stocks like Reliance Industries and Trent. The market sentiment remained subdued throughout the day, with the Nifty closing at 26,178.70, down 0.27%.
Analysts noted that the market is currently in a short-term consolidation phase, influenced by tariff-related and geopolitical uncertainties. The Nifty’s crucial support zone of 26,100–26,000, along with the 20-day EMA and a key psychological level, is being closely monitored for potential downside risks.
The Sensex also ended lower at 85,063.34, shedding 0.44% as Reliance Industries witnessed its most significant intraday decline in over eight months, dropping over 4%. Reports of Reliance being removed from CLSA’s India model portfolio triggered selling pressure on the stock.
Trent shares saw a sharper decline of around 9% following a disappointing third-quarter business update. Other major losers on the Sensex included Kotak Mahindra Bank, ITC, and HDFC Bank, while ICICI Bank, Sun Pharmaceutical Industries, and others provided some support by closing in the green.
The broader market displayed weakness, with the Nifty Midcap 100 and Nifty Smallcap 100 closing lower, indicating cautious sentiment beyond frontline stocks. Sector-wise, the Nifty Oil and Gas index performed the worst, dropping 1.75%, while healthcare and pharma stocks stood out as top gainers amid selective buying interest.
The Indian rupee saw an appreciation after four days of decline, attributed to foreign bank dollar supply and a tentative return of inflows from foreign funds. Analysts suggest a neutral-to-bullish trend for the spot USDINR as long as it remains above 89.90.
