The Indian stock market began on a down note for the second day in a row on Wednesday, as early trading saw significant selling activity, particularly in the public sector banking and pharmaceutical sectors.
The benchmark Sensex dropped 311.88 points, or 0.39%, settling at 80,057.15, while the Nifty index fell by 94.10 points, or 0.38%, to trade at 24,372.75.
Despite the negative opening, a majority of stocks on the National Stock Exchange (NSE) remained in the green, with 1,666 stocks gaining ground against 586 that experienced losses.
The Nifty Bank index fell sharply to 52,890.30, a decline of 430.40 points or 0.82%.
Conversely, the Nifty Midcap 100 index showed resilience, rising by 209.45 points, or 0.37%, to reach 56,460.75, while the Nifty Smallcap 100 index climbed by 156.40 points, or 0.86%, to stand at 18,355.35.
Among the top performers in the Sensex group were Maruti, IndusInd Bank, Tata Motors, TCS, and ITC, which helped mitigate some of the losses. In contrast, the biggest losers included Sun Pharma, Bajaj Finserv, Titan, HCL Tech, PowerGrid, and Asian Paints.
The Nifty pack mirrored this trend, with Maruti, BEL, IndusInd Bank, Tata Motors, and Bajaj Auto showing strong gains, while the pharmaceutical sector struggled, with Cipla, Dr. Reddy’s, Sun Pharma, Shriram Finance, Bajaj Finserv, and Titan facing declines.
Asian markets showed a mixed performance, with most indices declining except for Tokyo. Bangkok, Hong Kong, Shanghai, Jakarta, and Seoul all reported losses, while US markets also closed lower in the previous session.
FII Selling Pressure Eases, Shifting Market Outlook
Market analysts have pointed to two contrasting influences on the near-term market outlook. On a positive note, foreign institutional investors (FIIs) showed signs of reduced selling pressure, with net sales dropping to Rs 548 crore on Tuesday. This may signal an end to the trend of ‘Sell India, Buy China’ among FIIs.
As domestic institutional investors (DIIs) added to their positions, buying equities worth Rs 730 crore, there is a potential for a near-term market rebound, buoyed by the festive season.
However, experts caution that this upward momentum may not be sustainable, particularly in light of anticipated weaker earnings reports for the second quarter of FY25.
On Tuesday, the market had a strong showing, closing with gains driven by bank stocks.
The Sensex ended at 80,369.03, up 363.99 points or 0.45%, while the Nifty rose to 24,466.85, an increase of 127.70 points or 0.52%.
The contrasting trends underscore the market’s volatility as it navigates both external pressures and internal dynamics.
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