Indian equity markets opened the week on a cautious note but showed signs of resilience as the session progressed. The Sensex and Nifty, which slipped sharply in early trade, managed to pare a significant portion of losses by midday, supported by value buying in select sectors such as FMCG, consumer durables, and information technology. The initial weakness on Monday was consistent with the broader tone seen over the past few sessions. Indian markets have been grappling with multiple cross-currents: subdued global equity trends, persistent foreign portfolio investor (FPI) outflows, and lingering uncertainty around the contours and timeline of an India–US trade agreement. These factors have kept risk appetite in check, even as domestic macro indicators remain relatively stable.

Against this backdrop, the Sensex fell as much as 427.34 points to an intraday low of 84,840.32 in early trade, while the Nifty dropped 142.2 points to 25,904.75. The decline reflected cautious positioning rather than panic selling, with investors refraining from aggressive risk reduction.

As the session progressed, the tone improved. By around noon, the Sensex had recovered over 300 points from the day’s low to trade near 85,200.13, while the Nifty reclaimed the psychologically important 26,000 level, trading at 26,017.60.

This recovery was driven primarily by value buying rather than fresh macro triggers. Investors selectively stepped into stocks that had corrected in recent sessions, particularly in FMCG, consumer durables, and IT. Market participants appeared comfortable accumulating quality names at lower levels, especially where valuations had turned more reasonable after recent declines.

Adding marginal support to sentiment were firmer cues from the US. US equity futures were trading higher by up to 0.3 percent, signalling a positive opening for Wall Street. While not decisive, this helped stabilise domestic sentiment after the early sell-off.

From a technical perspective, caution remains warranted. Anand James, Chief Market Strategist at Geojit Investments Limited, pointed out that the Nifty is trading close to a declining parallel trendline. According to him, while the near-term bias still allows for continuation of the uptrend, the index’s inability to decisively clear the 26,190 level would signal a loss of momentum.

He also flagged that a direct fall below 25,970 could trigger long liquidation, though a sharp collapse appears less likely at this stage. This assessment reinforces the view that markets are currently in a narrow trading band, vulnerable to both global cues and domestic flows.