Markets Move Sideways As IT Shares Weigh On Benchmarks

Indian equity markets witnessed muted movements on Wednesday morning, as declines in technology stocks offset gains in other sectors.

By 9:30 AM, the BSE Sensex had eased by 27 points, or 0.03 per cent, to stand at 83,423. At the same time, the Nifty 50 slipped marginally by 2 points, or 0.01 per cent, to 25,722.

Unlike the headline indices, the broader market showed relative strength. The Nifty Midcap 100 rose by 0.4 per cent, while the Nifty Smallcap 100 recorded a gain of 0.36 per cent, indicating selective buying interest in mid- and small-cap stocks.

Most sectoral gauges remained in positive territory, although the Nifty IT index declined sharply by 1.35 per cent. The private banking segment also registered a mild fall of 0.14 per cent. In contrast, metal stocks led the advances, with the Nifty Metal index climbing 1.20 per cent.

According to market participants, immediate support for the Nifty is positioned in the 25,550–25,600 band, while resistance is seen in the 25,850–25,900 range.

The Nifty Bank continued to demonstrate relative strength, driven by sustained performance from private banks and renewed traction in select public sector lenders. Analysts placed near-term support for Bank Nifty between 60,900 and 60,600, with resistance levels identified around 61,300–61,400.

Outlook Influenced by Global Developments

The benchmark indices had advanced in the previous two trading sessions, supported by gains in banking, financial services, energy, pharmaceutical, and select IT counters. However, traders adopted a cautious stance amid profit-taking in richly valued stocks and mixed cues from overseas markets.

Experts suggested that, in the absence of fresh domestic triggers, the market may continue to trade within a limited range until clearer signals emerge from corporate earnings or global stability.

Several Asian exchanges remained closed owing to Lunar New Year celebrations. In mainland China, trading at the Shanghai and Shenzhen stock exchanges will resume on 23 February, while the Hong Kong exchange will reopen on 19 February.

Meanwhile, Wall Street ended largely higher in the previous session. The Nasdaq advanced 0.14 per cent, the S&P 500 gained 0.1 per cent, and the Dow Jones Industrial Average rose 0.07 per cent.

Data showed that on 17 February, foreign institutional investors made net purchases worth Rs 187 crore, while domestic institutional investors bought equities worth Rs 995 crore on a net basis.

Also Read: Sensex and Nifty End Higher; PSU Banks, IT Propel Rally