Mumbai– The Indian stock market ended lower for the second consecutive day on Wednesday, weighed down by high valuations and mixed global cues.
The Sensex fell 239.31 points, or 0.29 percent, to close at 81,312.32, while the Nifty slipped 73.75 points, or 0.30 percent, to 24,752.45.
FMCG stocks led the decline, with the Nifty FMCG index falling nearly 1.5 percent. Other sectoral indices also ended in the red, including Auto, Pharma, Metal, Realty, Infrastructure, Commodity, and Healthcare.
Midcap and smallcap stocks saw mixed activity. The Nifty Midcap 100 edged down 13 points to 57,141, while the Nifty Smallcap 100 rose 58 points, or 0.33 percent, to 17,784.
Analysts attributed the market’s weak performance to a lack of support from foreign institutional investors and premium valuations. However, some domestic factors—such as a positive monsoon outlook, low inflation, and expectations of strong Q4 GDP—could help limit further downside, according to Vinod Nair, Head of Research at Geojit Financial Services. He noted that improved earnings visibility is crucial for sustained market direction.
The India VIX, a measure of market volatility, dropped 2.79 percent to 18.02, suggesting reduced investor anxiety.
From a technical perspective, Hrishikesh Yedve of Asit C. Mehta Investment Intermediates Ltd. said the Nifty formed a red candle on the daily chart, signaling weakness. However, the index remains above its 21-day exponential moving average at 24,570. As long as this level holds, a pullback remains possible, though strong resistance is expected near the 25,000–25,100 range.
The rupee traded flat at 85.40 against the U.S. dollar, while the dollar index remained steady around 99.45.
With key economic indicators expected this week—including U.S. Fed minutes, Q4 GDP data, and the Core PCE Price Index—foreign fund flows will play a key role in guiding the rupee’s direction, said Jateen Trivedi of LKP Securities.
Gold prices moved higher, supported around the $3,280–$3,300 level on Comex. On MCX, gold gained Rs 600, finding support near Rs 95,000. (Source: IANS)
