The Indian benchmark indices took a breather from a record rally to close lower on Wednesday as sentiment was hit after a rout in global stocks. The closing came after Asian stocks plunged, tracking the overnight losses in the US markets, led by weak economic data and easing oil prices on weak global demand.
The NSE Nifty 50 ended 0.32% or 81.15 points, down at 25,198.70, while the S&P BSE Sensex declined 0.25% or 202.80 points, to close at 82,352.64. Intraday, the Nifty fell as much as 0.78% to 25,083.80 and Sensex plunged 0.87% to hit a low of 81,833.69.
Selective buying in heavyweight stocks helped trim the losses as the session progressed, according to Ajit Mishra, senior vice president of research at Religare Broking Ltd.
"This move indicates that the bulls are still holding their ground, though consolidation could occur if global pressures intensify. We recommend maintaining a focus on stock selection and trade management, with the support zone for Nifty remaining strong at 24,850–25,000," he said.
India's bull run is only past the halfway mark, but a mix of fundamental and technical factors have Asia's third-largest market poised for a temporary correction, according to Morgan Stanley analysts.
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Shares of ICICI Bank Ltd., Infosys Ltd., and Larsen & Toubro Ltd. contributed the most to the losses in the Nifty.
Reliance Industries Ltd., Hindustan Unilever Ltd., Asian Paints Ltd. and HDFC Bank Ltd. advanced the most.
Most sectoral indices on the NSE ended lower, with the Nifty Pharma being the top gainer and the PSU Bank falling the most.
Broader markets ended on a mixed note as the BSE MidCap settled 0.15% lower and the SmallCap ended 0.26% higher.
On the BSE, 15 sectors ended lower and five higher out of 20. Healthcare logged the most gains, while metal declined the most.
The market breadth was evenly split between buyers and sellers as 2,019 stocks fell, 1,932 rose and 96 remained unchanged on the BSE.
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