Key Highlights:
- Sensex and Nifty drop over 100 and 50 points respectively amid global weakness.
- Auto, metal, and finance sectors drag; tech and select banks gain.
- No clear earnings support; market lacks positive breakout triggers.
Mumbai: Indian benchmark indices Sensex and Nifty fell in early trade on Wednesday, tracking weak global market sentiment and persistent concerns over US inflation. The 30-share BSE Sensex slipped by 103.16 points to 82,467.75, while the NSE Nifty declined by 56.75 points to 25,139.05.
Investor sentiment remained subdued due to lingering uncertainty around tariff-related developments, as markets awaited clarity on a potential India-US trade deal.
Major Drag from Auto, Metal and Finance Stocks
Several heavyweight stocks contributed to the early market weakness. Among the major laggards on the Sensex were Mahindra & Mahindra, Tata Motors, Tata Steel, Eternal, Bajaj Finance, and Bajaj Finserv, all of which faced selling pressure.
On the flip side, Trent, Tech Mahindra, Adani Ports, and HDFC Bank emerged as early gainers, offering some cushion to the broader market slide.
Muted Global Sentiment and Earnings Concerns
Asian markets reflected a mixed trend. South Korea’s Kospi, Japan’s Nikkei 225, and China’s SSE Composite were in the red, while Hong Kong’s Hang Seng bucked the trend with modest gains. US markets also ended mostly lower on Tuesday following sticky inflation data.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, markets remain range-bound and lack strong earnings momentum. "A breakout above the 25,500 level on the Nifty would need a substantial trigger such as a favorable trade deal," he noted, but emphasized that a sustainable rally is unlikely without meaningful earnings growth.
Two key segments – IT services and FMCG – are facing earnings headwinds, dampening broader market optimism.
FIIs Remain Buyers; Crude Edges Higher
Foreign Institutional Investors (FIIs) purchased equities worth USD 120.47 crore on Tuesday, indicating cautious optimism. Meanwhile, Brent crude prices saw a marginal rise of 0.20 percent to USD 68.85 per barrel, offering limited impact on the market direction.
(With PTI Inputs)
