Closing Bell: Sensex falls 245 pts, Nifty settles at 25,666 - Anil Singhvi explains why stock markets stayed volatile

Indian equity benchmarks witnessed sharp intraday swings on Wednesday, with frontline indices struggling to sustain gains despite support from select pockets of the broader market, market expert and Zee Business Managing Editor Anil Singhvi said.

The BSE Sensex fell 244.98 points, or 0.29 per cent, to close at 83,382.71, while the Nifty 50 declined 66.70 points, or 0.26 per cent, to settle at 25,665.60.

Singhvi said market action remained volatile through the session, with repeated attempts at recovery failing to hold at higher levels.

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Heavyweights drag indices

The decline in the benchmarks was led by losses in heavyweight stocks, particularly in the IT and banking space. TCS declined 2.13 per cent, Asian Paints fell 2.29 per cent, Hindustan Unilever slipped 1.54 per cent, ICICI Bank dropped 1.47 per cent, and HDFC Bank lost 1.29 per cent.

Singhvi said weakness was largely concentrated in large-cap stocks, which carry high index weight, while the broader market showed relative resilience.

He noted that while the Sensex and Nifty remained under pressure, Bank Nifty showed signs of strength during the session.

PSU banks, metals outperform

In contrast to the weakness in select heavyweights, metal and PSU bank stocks outperformed. Tata Steel rose 3.56 per cent, while NTPC gained 3.21 per cent.

Sectorally, Nifty Metal surged 2.70 per cent, and Nifty PSU Bank jumped 2.13 per cent. Meanwhile, Nifty IT declined 1.08 per cent and Nifty FMCG fell 0.61 per cent.

Singhvi said public sector banks were providing support to Bank Nifty, even as private sector banking majors remained under pressure.

Broader market shows resilience

Broader indices closed higher, reflecting selective buying interest. The Nifty Smallcap 50 rose 0.86 per cent, while the Nifty Next 50 gained 0.39 per cent. Singhvi said mid-cap and small-cap stocks were showing better resilience compared with large-cap stocks, helping prevent a sharper decline in the overall market.

He added that domestic institutional investors and local funds were providing support at lower levels, which was limiting the downside.

FII selling weighs on sentiment

Explaining why markets failed to hold higher levels, Singhvi said persistent foreign institutional investor selling remained the primary factor weighing on sentiment. “If there is selling despite good news, the market will not hold. And if there is buying despite bad news, the market can still go up,” he said.

Singhvi said FIIs had been continuous sellers for several sessions, putting pressure on heavyweight stocks such as ICICI Bank, HDFC Bank, TCS and Hindustan Unilever, which are largely owned by foreign investors.

Geopolitical risks, earnings impact

Singhvi also pointed to geopolitical concerns as a factor impacting sentiment. He said uncertainty related to Iran continued to create nervousness in the market, limiting aggressive buying. He added that elevated crude oil prices indicated that geopolitical risks had not eased.

He said selling was also seen in IT stocks after quarterly results, noting that stocks were struggling to sustain gains even after earnings announcements. Singhvi said Union Bank of India was one of the few exceptions, while most result-driven stocks failed to maintain momentum.

Investor approach

Singhvi advised investors to remain calm amid ongoing volatility. He said opportunities could emerge in stocks where results were strong, but prices had corrected due to broader market sentiment. He added that there was no need for panic, stating that the current phase of volatility would eventually pass.