The Indian stock market ended in the red for the second consecutive session on Wednesday, weighed down by premium valuations and mixed global cues.
The BSE Sensex slipped 239.31 points, or 0.29 per cent, to close at 81,312.32, while the NSE Nifty dropped 73.75 points, or 0.30 per cent, settling at 24,752.45.
The decline was primarily driven by FMCG stocks, with the Nifty FMCG index ending nearly 1.5 per cent lower. Other sectoral indices such as Nifty Auto, Pharma, Metal, Realty, Infra, Commodity, and Healthcare also closed in negative territory.
Midcap and smallcap indices showed mixed trends. The Nifty Midcap 100 fell slightly by 13 points to 57,141, whereas the Nifty Smallcap 100 rose by 58 points, or 0.33 per cent, to 17,784.
Analysts attributed the subdued market sentiment to a lack of support from foreign institutional investors (FIIs) and the prevailing premium valuations.
“Domestic indices remained rangebound with a negative bias due to limited FII support and stretched valuations,” said Vinod Nair, Head of Research at Geojit Financial Services.
He added that key economic indicators such as a favourable monsoon forecast, a benign inflation outlook, and expectations of a strong Q4 GDP could help cushion downside risks. However, earnings visibility needs to improve alongside macroeconomic fundamentals to ensure stability in market direction, Nair noted.
Volatility eased, with the India VIX falling 2.79 per cent to 18.02, reflecting a drop in market uncertainty.
“Technically, the Nifty formed a red candle on the daily chart, indicating weakness. However, it continues to trade above its 21-day Exponential Moving Average (21-DEMA), which is currently around 24,570. As long as it holds above this level, a pullback move remains possible,” said Hrishikesh Yedve, Technical and Derivative Analyst at Asit C. Mehta Investment Interrmediates Ltd (a Pantomath Group company).
He noted that the index may face stiff resistance near the 25,000–25,100 zone in the near term.
Meanwhile, the Indian rupee traded flat around 85.40 against the US dollar, as the dollar index remained stable near the 99.45 mark.
“With key global economic data due this week—including the US Fed meeting minutes, Q4 GDP data, and the Core PCE Price Index—the rupee’s movement will largely depend on foreign fund flows in the secondary market,” said Jateen Trivedi, VP Research Analyst at LKP Securities.
Gold prices traded firm, finding strong support in the $3,280–$3,300 range on Comex. On the domestic front, MCX gold gained Rs 600, supported by a base around the Rs 95,000 level.
-IANS