Market Wrap

Indian equities staged a strong comeback on Wednesday, with the Nifty 50 rising 0.55% to close at 24,715, its day’s high. The index traded rangebound in the first half but surged in late trade, led by metals, where the sectoral index jumped nearly 3%, emerging as the top gainer. Broader sentiment improved, with selective buying seen in mid- and small-cap stocks after recent weakness. Global cues remained mixed: U.S. markets fell overnight as volatility in global bond yields weighed on sentiment, while European equities posted modest gains. On the domestic front, expectations of GST rate cuts on 175 items and softening crude prices lent support, though foreign fund flows stayed cautious ahead of key U.S. macro data.

What's Ahead

With Nifty now at the upper end of its two-day consolidation range of 24,522–24,756, a breakout above 24,735–24,756 could trigger further upside toward 24,810–24,885. Immediate support is seen at 24,650–24,570. Volatility is likely to pick up with the weekly expiry of Sensex derivatives today, while outcomes from the upcoming GST Council meeting will be a key catalyst for consumption- and manufacturing-linked stocks.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

NIFTY 50

Commentary:The NIFTY 50 ended lower by 45.45 points, or 0.18%, at 24,579.60, as weakness in key private banks and auto stocks offset gains in select FMCG names. ICICI Bank (-1.42%), HDFC Bank (-0.64%), M&M (-2.33%), and Tata Motors (-0.85%) were among the top drags, while Tata Consumer Products (+2.77%) and Nestle India (+2.26%) lent support. The index opened firm at 24,653.00 and climbed to an intraday high of 24,756.10 before heavy profit booking pushed it to a low of 24,522.35. Despite early strength, sentiment was dented by concerns over US-India tariff tensions, with news of steep U.S. tariffs on pharma imports weighing on exporters. The session saw sectoral rotation, and near-term support and resistance levels are pegged at 24,403/24,294 and 24,756/24,866, respectively.

Bank NIFTY

The NIFTY BANK index slipped 341.45 points, or 0.63%, to settle at 53,661.00, reflecting persistent selling pressure in key heavyweights. ICICI Bank (-1.42%) and HDFC Bank (-0.64%) dragged the index, alongside Kotak Bank (-1.20%) and AU Small Finance Bank (-1.60%). PSU banks like Canara Bank (+0.97%) and Bank of Baroda (+0.77%) provided some cushion, but gains were insufficient to offset overall weakness. The index traded between 54,160.95 and 53,578.00, with an intraday swing of nearly 583 points. Rising bond yields, global uncertainty, and geopolitical tensions weighed on sentiment, while gold financiers saw early buying interest before retracing gains. Near-term support is placed at 53,053/52,676, with resistance at 54,269/54,646.

SENSEX

The SENSEX closed lower by 206.61 points, or 0.26%, at 80,157.88, dragged by losses in banking and auto heavyweights. HDFC Bank (-0.64%), ICICI Bank (-1.42%), and Axis Bank (-0.58%) were among the biggest contributors to the decline, alongside M&M (-2.33%) and Tata Motors (-0.85%). Nestle India (+2.26%) and Power Grid (+2.20%) lent some support, but it wasn’t enough to prevent a broad-based slide, as 16 of the 30 index constituents ended in the red. The index’s weakness reflects caution amid lingering tariff tensions and muted investor risk appetite. Key support levels are seen at 79,571/79,208, while resistance lies at 80,744/81,107.

FINNIFTY

The NIFTY Financial Services index dropped 170.55 points, or 0.66%, to close at 25,572.95, underperforming broader indices as heavyweights dragged the sector lower. HDFC Bank (-0.64%), ICICI Bank (-1.42%), and Kotak Bank (-1.20%) were key laggards, joined by LICHSGFIN (-1.31%). Gains in RECLTD, PFC, and Bajaj Finserv provided some respite but failed to reverse the downward trend, as 13 of the 20 tracked stocks ended in negative territory. The index’s decline signals bearish undertones in the financial space, with market sentiment clouded by sector-specific and global macro headwinds.