Indian benchmark indices started the day in the red zone due to negative global cues, a tech sell-off on Wall Street, and ongoing selling by foreign portfolio investors. The Sensex dropped 115 points to 84,579, while the Nifty fell 30 points to 25,911.
Major cap indices, including the Nifty Midcap 100 and Nifty Smallcap 100, also saw declines in line with the benchmark indices. Among sectoral gainers, the Nifty PSU Bank and Nifty Realty were the top losers, down 0.18% and 0.13% respectively.
Analysts noted that immediate support levels are at 25,850–25,900, with a crucial resistance band at 26,150–26,200. They highlighted that despite the weak year-end trend, there is no clear directional shift in the market yet. The advance-decline ratio favored declines, leading to a 100-point drop in the Nifty on the previous day.
Market watchers advised investors to await new triggers and directional moves, anticipating a clearer trend early in the new year when large institutions resume activity. They also mentioned that upcoming auto sales data will offer insights into the sustainability of the consumption boom and economic growth.
In the Asian markets, most indices traded lower in the morning session, influenced by the tech sell-off on Wall Street. China’s Shanghai index and Japan’s Nikkei were down, while Hong Kong’s Hang Seng Index recorded gains. The US markets closed in the red on Monday, with the Nasdaq, S&P 500, and Dow all registering losses.
Foreign institutional investors sold equities worth Rs 2,760 crore on December 29, while domestic institutional investors were net buyers of equities worth Rs 2,644 crore.
