Closing Bell: Sensex falls over 110 points, Nifty below 23,620 - IT stocks top gainers

Indian equity markets ended in a mixed session, with benchmark indices closing lower despite strength in broader markets. The Sensex fell 114.19 points, or 0.15 per cent, to 75,200.85, while the Nifty declined 31.95 points, or 0.14 per cent, to 23,618.

Market sentiment remained largely steady, supported by buying in mid-cap and small-cap stocks as well as continued strength in IT shares, even as global cues remained mixed and pressure from currency and crude oil trends persisted, market expert Anil Singhvi said.

Anil Singhvi said the broader market strength continued to support overall stability in equities. “Broader market is very strong. Mid-cap and small-cap indices are showing strong momentum, and this is supporting overall sentiment,” he said.

Mid and small caps lead market strength

Mid-cap and small-cap stocks continued to outperform frontline indices. Mid-cap and small-cap indices rose around 1.5 per cent each, indicating broad-based participation in the rally.

Broader market indices ended with a positive bias, with mid-cap and small-cap segments leading gains. Nifty Next 50 rose 0.55 per cent, while mid-cap indices gained in the range of 0.77 per cent to 0.91 per cent. Small-cap indices also advanced strongly, rising between 1.16 per cent and 1.22 per cent, indicating broad-based buying interest.

Benchmark broad indices such as Nifty 100 ended nearly flat, while Nifty 200 and Nifty 500 gained 0.17 per cent and 0.27 per cent, respectively.

Singhvi said the strength in the broader market is acting as a cushion for the overall indices, even when heavyweight stocks show limited movement.

IT stocks extend gains

IT stocks also extended gains for the second consecutive session and rose around 4 per cent in recent trading sessions. This helped support benchmark indices.

Nifty IT index surged 3.23 per cent to 29,308, led by strong buying across major IT stocks. Coforge gained 4.73 per cent, followed by Infosys, which rose 4.51 per cent. LTIMindtree advanced 4.43 per cent, while Mphasis was up 3.24 per cent.

HCLTech gained 2.91 per cent, and Oracle Financial Services Software rose 2.83 per cent. Tech Mahindra and Persistent Systems added 2.59 per cent and 2.51 per cent, respectively. TCS gained 2.05 per cent, while Wipro rose 1.73 per cent.

The broad-based rally in IT stocks supported the sector index and helped improve overall market sentiment. According to Singhvi, IT stocks are showing signs of recovery after a prolonged period of weakness, although he noted that it is still early to confirm a long-term trend reversal.

Nifty Sectoral Indices

Sectoral indices ended mixed in trade, with broader participation seen across select segments. Realty rose 1.43 per cent, followed by media, which gained 1.18 per cent. PSU Bank index advanced 0.81 per cent, while pharma added 0.42 per cent. Auto index inched up 0.29 per cent, and FMCG remained largely flat with a marginal decline of 0.03 per cent.

On the other hand, banking and financial services indices ended in the red, with Nifty Bank falling 0.24 per cent and financial services slipping 0.26 per cent. Private banks underperformed, declining 0.74 per cent. Metal and cement indices also ended marginally lower.

FIIs and domestic funds support buying

Market strength was also supported by consistent buying from foreign institutional investors (FIIs) over the last few sessions. Domestic institutional investors also participated with selective buying.

“FIIs are buying for the last three sessions, and domestic funds have also supported the market. This has helped prevent sharp declines,” Singhvi said.

Currency and crude oil remain pressure points

Despite the positive trend in equities, concerns remain about macro factors. The rupee has been hitting record lows for several consecutive sessions, crossing the 96 mark against the US dollar.

Crude oil remains elevated near USD 110 per barrel, adding to inflation concerns. However, easing geopolitical concerns related to the Middle East helped prevent a further rise in oil prices, which provided some relief to markets.

Global cues mixed but stable

Global markets showed mixed movement, but overall sentiment remained stable and did not create major negative pressure for Indian equities.

Nifty and Bank Nifty key levels

Anil Singhvi said the Nifty has been moving in a narrow range for the past three sessions, indicating consolidation in the market. He noted that Nifty has been trading in a tight band of around 23,600 to 23,700, and said a breakout on either side of this range will decide the next trend.

According to him, the Nifty support zone is placed between 23,425 and 23,575, while resistance is seen between 23,700 and 23,815. He added that a move above 23,850 could trigger stronger upward momentum, while a fall below 23,600 may signal weakness.

For Bank Nifty, Singhvi said the support is placed between 52,800 and 53,200, while resistance is seen at 53,700. He noted that a sustained breakout could take the index towards the 54,100 to 54,500 zone, but a move below 53,200 would indicate weakness. He further said Bank Nifty briefly crossed 53,700 but failed to hold above that level, showing selling pressure at higher zones.