MUMBAI — Indian stock markets closed lower for the second consecutive session Wednesday, with losses in automobile, metal and major blue-chip stocks weighing on benchmark indexes as smaller companies faced a sharper selloff.
The benchmark BSE Sensex declined 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 finish at 22,811.35.
Selling pressure was particularly pronounced in the broader market, where the Nifty MidCap 100 index dropped 1.58% and the Nifty SmallCap 100 plunged 2.37%, reflecting growing investor caution toward smaller companies.
Among individual stocks, Bajaj Finance, BSE Ltd. and Eternal were among the biggest losers, contributing to weakness in the benchmark indexes.
Sectoral performance was mixed, with chemical, consumer durable and metal stocks recording some of the steepest declines. Information technology shares bucked the broader downward trend, making the Nifty IT index the strongest-performing sectoral benchmark of the session.
Market analysts said the continuing weakness reflected profit-taking across several sectors, particularly among mid-cap and small-cap stocks, while gains in technology companies provided limited support to the broader market.
From a technical perspective, analysts identified the 23,000 level as an important resistance point for the Nifty. They said a sustained move above that threshold would be needed to improve the index’s near-term outlook.
Without a convincing recovery above 23,000, the benchmark could remain vulnerable to further declines, with selling pressure likely to emerge during temporary rebounds.
“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.
Investors are also closely watching corporate earnings, developments in international trade negotiations and foreign investment flows for indications of the market’s next direction.
Analysts said fluctuations in crude oil prices, global bond yields and currency markets could influence investor sentiment in the coming sessions.
“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 second consecutive day of declines highlights the pressure facing Indian equities as investors reassess valuations and corporate earnings prospects.
With smaller stocks experiencing substantially deeper losses than the benchmark indexes, market participants are expected to closely monitor whether selling pressure spreads further or bargain-hunting helps stabilize prices in the coming sessions. (Source: IANS)
