Sensex, Nifty extend losing streak amid weak global cues; what's ahead for Dalal Street?

Indian equity benchmarks extended their declines on Wednesday, weighed by weak global cues. The 30-share BSE Sensex pack fell 325.78 points or 0.42 per cent to settle at 76,909.68, while the broader NSE Nifty50 index declined 76.60 points or 0.32 per cent to close at 24,078.30. Sensex slipped for the fourth consecutive session, while Nifty extended its losing streak to the seventh straight session.

Sectoral performance remained largely negative. Energy, FMCG and financial stocks were among the key laggards, while IT stocks staged a modest uptick.

The broader market also came under pressure, with the midcap and smallcap indices declining 0.21 per cent and 0.56 per cent, respectively.

Among the major Sensex laggards were Reliance Industries Ltd (RIL), ICICI Bank Ltd, Larsen & Toubro Ltd (L&T), HDFC Bank Ltd, Bajaj Finance Ltd, State Bank of India (SBI), ITC Ltd, Bharti Airtel Ltd, Axis Bank Ltd and Power Grid Corporation of India Ltd.

Ajit Mishra, SVP (Research) at Religare Broking, said, "Investor sentiment remained subdued as Brent crude moved towards the $92 per barrel mark amid stalled US-Iran peace negotiations, raising concerns over global energy supplies. Rising bond yields in developed markets further weighed on risk appetite and reduced the attractiveness of emerging-market equities. However, selective buying in heavyweight stocks helped cushion the overall decline."

Mishra added, "Given the prevailing combination of elevated crude prices, geopolitical uncertainty and weak market momentum, we recommend maintaining a cautious, stock-specific approach with a strong focus on risk management. Participants may selectively consider auto, realty and defence stocks on dips for long opportunities, while relatively weaker pockets such as FMCG and energy could offer selective short-selling opportunities, subject to appropriate risk controls."

Vinod Nair, Head of Research at Geojit Investments, noted, "Markets turned cautious ahead of the release of the US FOMC minutes, as investors remained concerned that the Federal Reserve's battle against inflation may continue. The lack of a diplomatic resolution following the end of the US-Iran ceasefire kept crude oil prices and bond yields elevated, strengthening risk-off sentiment. Reflecting weakness across Asian markets, Indian equities saw broad-based selling, though IT stocks outperformed on value buying and support from a weaker rupee."

Nair also said, "As the Q1 FY27 earnings season draws to a close, corporate results have generally exceeded expectations, reinforcing confidence in earnings resilience. However, with temporary market tailwinds fading, the next phase of market performance will depend largely on the stability of crude oil supply chains."

Nifty outlook

Rupak De, Senior Technical Analyst at LKP Securities, stated, "For Nifty50, immediate support is placed at 24,000–24,050. If this zone holds, the index might stage a meaningful recovery. On the other hand, if Nifty fails to sustain above 24,000, significant bearishness could increase, dragging the index towards much lower levels. Therefore, long positions should be held with a strict stop-loss at 24,000."