Mumbai witnessed a subdued start to the trading session on Wednesday, as the Indian equity indices opened lower amid mixed cues from global markets.
At 9:26 AM, the Sensex slipped by 141 points, or 0.17%, to 82,429, while the Nifty declined 57 points, or 0.23%, settling at 25,138.
In contrast, midcap and smallcap indices saw modest gains, reflecting a cautious yet selective buying interest.
The Nifty Midcap 100 index was up by 23 points at 59,636, and the Nifty Smallcap 100 index rose 15 points to 19,150.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the market had been trading within a narrow range over the past two months.
He stressed that a breakout beyond the upper band, notably above Nifty 25,500, would require significant positive triggers.
Among such catalysts, an India-US trade deal reducing tariffs, currently around 20%, was highlighted as a potential market booster.
However, Dr Vijayakumar cautioned that even if such a trade deal materialised, a sustained market rally would remain unlikely without strong earnings support.
Sectoral Performance
On the sectoral front, IT, PSU banks, FMCG, realty, media, and public sector enterprises (PSE) were among the morning’s gainers.
Conversely, sectors such as auto, financial services, pharmaceuticals, metals, and energy witnessed selling pressure and traded lower.
Within the Sensex constituents, shares of Adani Ports, Trent, Tech Mahindra, HDFC Bank, SBI, Infosys, ITC, HCL Technologies, and Bharat Electronics Ltd. (BEL) performed well.
Meanwhile, stocks like Mahindra & Mahindra, Tata Steel, Tata Motors, Bajaj Finance, ICICI Bank, Eicher Motors, TCS, and Ultratech Cement faced losses.
Analysts observed a sharp rebound in the Nifty 50 after it retested the crucial support level at 25,000, indicating a renewed, albeit cautious, bullish momentum.
Aakash Shah from Choice Equity Broking advised investors to consider fresh long positions only if the Nifty sustains above the 25,250 level.
He emphasised the importance of closely monitoring key technical levels alongside evolving global developments.
International markets showed a mixed trend. Asian indices in Tokyo, Hong Kong, Jakarta, and Bangkok traded higher, whereas Shanghai and Seoul markets were down.
On the other side of the globe, the Dow Jones in the United States closed 0.98% lower on Monday, reflecting ongoing global uncertainties.
Institutional investment activity
On the domestic front, foreign institutional investors (FIIs) ended a two-day selling streak, turning net buyers with a purchase of Rs 120 crore on July 15.
Domestic institutional investors (DIIs) continued their buying spree, investing Rs 1,555 crore on the same day, marking their seventh consecutive session of net buying.
As the market remains range-bound amid mixed cues, investors and traders are advised to stay alert to global developments and key technical levels.
The potential India-US trade deal and upcoming earnings results will play a critical role in determining the market’s direction in the near term.
Also Read: India’s Exports Rise By 6.5% In June; Q1 Exports Up Nearly 6%
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