Sensex, Nifty Fall for Second Straight Session as Small-Cap Stocks Slide Over 2%
Mumbai — Indian stock markets ended lower for the second consecutive session Wednesday, weighed down by losses in automobile, metal and heavyweight stocks, while mid-cap and small-cap shares experienced significantly sharper declines.
The benchmark BSE Sensex dropped 143.21 points, or 0.19%, to close at 73,709.69, while the NSE Nifty 50 fell 77.60 points, or 0.34%, to settle at 22,811.35.
Selling pressure was particularly pronounced in the broader markets, where investors continued to reduce exposure to mid-sized and smaller companies amid persistent volatility.
The Nifty MidCap 100 index declined 1.58%, while the Nifty SmallCap 100 index plunged 2.37%, substantially underperforming the benchmark indices.
Among individual Nifty stocks, Bajaj Finance, BSE Limited and Eternal were among the session’s biggest losers, contributing to the weakness in the broader market.
Sectoral performance was mixed, with chemical, consumer durables and metal stocks recording some of the steepest declines.
The Nifty IT index bucked the downward trend, emerging as the strongest-performing sector during the session as gains in technology shares helped limit overall market losses.
Market analysts said profit-taking across several sectors and continued uncertainty surrounding smaller stocks kept investors cautious despite selective buying in information technology companies.
From a technical perspective, analysts identified the 23,000 level as an important threshold for the Nifty to regain positive short-term momentum.
A sustained move above that level could improve the market’s near-term outlook, while continued failure to reclaim it could leave the index vulnerable to additional selling pressure.
“On the downside, 22,650–22,600 forms the immediate support zone, followed by 22,300. A decisive break below 22,600 could intensify selling pressure and expose the index to the 22,300–22,200 range,” analysts said.
They cautioned that temporary market recoveries could encounter resistance unless broader buying interest returns and investor sentiment improves.
Looking ahead, market participants are expected to monitor corporate earnings, developments in international trade negotiations and foreign institutional investment flows for clues about the direction of Indian equities.
Movements in global crude oil prices, bond yields and the Indian rupee are also likely to influence trading sentiment.
“Near-term direction will depend on the breadth of earnings delivery, progress on trade negotiations and foreign flows, with durable moderation in crude, global yields and currency volatility crucial for market stability,” analysts said.
The sharp declines in mid-cap and small-cap stocks highlighted continued investor concerns about valuations and market volatility, even as selective strength in technology shares provided some support to the headline indices. (Source: IANS)
