Mumbai– Indian equity markets ended in the red for the second straight session on Wednesday, weighed down by premium valuations and mixed global cues. The decline was led primarily by fast-moving consumer goods (FMCG) stocks.
The BSE Sensex dropped 239.31 points, or 0.29%, to close at 81,312.32, while the NSE Nifty slipped 73.75 points, or 0.30%, ending the day at 24,752.45.
FMCG stocks were the biggest drag on the indices, with the Nifty FMCG index falling nearly 1.5%. Other sectoral indices that closed lower included Auto, Pharma, Metal, Realty, Infra, Commodity, and Healthcare.
Midcap and smallcap stocks saw mixed action. The Nifty Midcap 100 edged down 13 points to 57,141, while the Nifty Smallcap 100 gained 58 points, or 0.33%, to close at 17,784.
Analysts noted that the market remained rangebound with a negative bias, largely due to tepid foreign institutional investor (FII) activity and stretched valuations.
“Domestically, factors such as a favorable monsoon outlook, subdued inflation expectations, and anticipated strength in Q4 GDP data may help cushion market downside,” said Vinod Nair, Head of Research at Geojit Financial Services. However, he emphasized the need for improved earnings visibility to provide a more stable market trajectory.
Market volatility also eased, with the India VIX falling 2.79% to 18.02, signaling reduced short-term uncertainty.
From a technical perspective, Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates Ltd (a Pantomath Group company) said the Nifty formed a red candle on the daily chart, reflecting weakness. Still, it remains above the 21-day exponential moving average (21-DEMA) near 24,570.
“As long as the index holds above this level, a pullback cannot be ruled out. On the upside, resistance is expected near the 25,000–25,100 range,” Yedve said.
In currency markets, the rupee traded flat around 85.40 against the U.S. dollar, with the dollar index also holding steady near 99.45.
Looking ahead, key global data releases — including the U.S. Fed meeting minutes, Q4 GDP figures, and the Core PCE Price Index — are expected to influence foreign fund flows and the rupee’s direction, said Jateen Trivedi of LKP Securities.
Meanwhile, gold prices gained ground. On Comex, gold found strong support around the $3,280–$3,300 range, while MCX gold rose by Rs 600, with buying interest emerging around the Rs 95,000 level. (Source: IANS)
