Despite weakness in frontline indices, select sectors and midcap stocks provided some support to overall market sentiment
The stock market in India experienced a volatile session this Tuesday, continuing their consolidation trend. Investors remained cautious ahead of key economic events and global market signals. The BSE Sensex ended the day at 81,034, falling by 339 points or 0.42%, while the Nifty50 index closed at 24,652, down 63 points or 0.26%.
Despite weakness in frontline indices, select sectors and midcap stocks provided some support to overall market sentiment.
Key Highlights from the Market
Sensex fell by 339 points, closing at 81,034
Nifty50 dipped by 63 points, settling at 24,652
Nifty Bank index hit a new all-time high of 56,161 during early trade
MidCap and SmallCap indices posted mild gains
Mixed performance across sectors, with notable weakness in private banks
Sector-Wise Performance
The broader market showed some resilience despite frontline indices slipping into negative territory:
The Nifty Bank index touched a new record high of 56,161 in early trading but ended lower as traders booked profits.
The Nifty Metal, Nifty Realty, and Nifty PSU Bank indices ended higher, posting gains in the range of 0.3% to 0.5%.
On the other hand, the Nifty Private Bank index closed down by 0.4%, as large-cap private banks saw selling pressure later in the session.
In the broader markets, both the Nifty MidCap and Nifty SmallCap indices stayed in positive territory. The MidCap index rose by 0.11%, while the SmallCap index advanced by 0.51%, reflecting strength in non-index stocks.
Top Gainers and Losers
Top Gainers on Sensex and Nifty
Mahindra & Mahindra (M&M): Strong buying interest helped the stock close in the green.
HDFC Bank: Gained amid optimism in the banking space.
Reliance Industries: Provided support to indices with steady performance.
Tata Steel: Rose on firm global metal prices.
Eternal (Zomato): Continued its upward trend on positive growth expectations.
Top Losers on Sensex and Nifty
Adani Enterprises: Fell over 2% after news broke of a U.S. investigation.
Adani Ports: Declined in reaction to broader concerns over the group.
Bajaj Finserv: Lost ground amid profit booking in the finance sector.
Larsen & Toubro (L&T): Dropped as infrastructure stocks faced pressure.
ICICI Bank and Maruti Suzuki: Also among the key laggards of the day.
Adani Group Stocks Under Pressure
A major reason behind market nervousness was fresh regulatory concerns surrounding the Adani Group. Shares of Adani Enterprises fell by more than 2% following a report by the Wall Street Journal. The report stated that U.S. prosecutors are investigating whether Adani-linked firms used Mundra Port to bring Iranian liquefied petroleum gas (LPG) into India, which may violate international trade norms.
The news sparked a sell-off across other Adani Group stocks:
Adani Ports
Adani Power
Adani Energy
Adani Total Gas
All these counters saw sharp declines, dragging the broader market sentiment lower in the process.
Positive Buzz in Jindal Stainless
Amid the negative news, Jindal Stainless shares gained 1% after the company announced that it had acquired a special purpose vehicle (SPV) to produce 282 MW of hybrid renewable energy. This green energy will be used to power the company’s manufacturing plants, supporting its long-term sustainability goals.
The development was received positively by market participants, as the move is aligned with the global trend toward clean and renewable energy sources.
Global Cues and Domestic Outlook
Global equity markets remained mostly cautious as investors awaited further guidance on interest rate policy from the U.S. Federal Reserve. The mixed signals from Wall Street overnight, along with cautious commentary from European markets, kept sentiment in check.
Back home, investors are also watching out for upcoming macroeconomic data such as:
India’s services PMI
Foreign exchange reserves data
Inflation updates, expected later in the week
Domestic institutional investors remained active in the market, while foreign investors showed limited participation due to uncertainty in global cues.
Market Sentiment & Technical View
The markets are currently going through a consolidation phase, which typically follows a strong rally. During such periods, indices tend to trade in a narrow range as investors lock in profits and wait for fresh triggers.
Technically, the Nifty50 has strong support near 24,500, while resistance is seen around 24,800. A breakout in either direction will likely set the tone for the next leg of the market movement. The Sensex, meanwhile, is showing support near 80,700 and resistance around 81,500.
Momentum indicators like the Relative Strength Index (RSI) remain neutral, which further confirms that the market is neither overbought nor oversold at current levels.
Looking Ahead
The market will take cues from both domestic data and global economic events in the coming days. Some factors to keep an eye on include:
Any developments in the Adani investigation
U.S. Federal Reserve’s policy stance and global bond yields
India’s upcoming inflation and GDP data
Movements in crude oil prices and the rupee-dollar exchange rate
Investors are expected to remain cautious, with stock-specific action dominating the market in the short term. Defensive sectors such as FMCG, IT, and pharmaceuticals could see some inflows if market volatility continues.
Tuesday’s session highlighted the ongoing market consolidation, with the Sensex and Nifty50 both slipping modestly. While large-cap banking and infra stocks dragged the indices lower, midcap and small-cap stocks showed signs of resilience.
The buzz around the Adani Group probe weighed heavily on market sentiment, while selective positive developments like Jindal Stainless’s renewable energy investment helped keep broader interest alive. Going forward, clear global signals and domestic data will shape the market’s next direction.
Until then, volatility is expected to remain high, and investors will likely stick to a stock-specific strategy while monitoring macro developments closely.
