Markets snap 3-day winning run: Sensex falls 503 pts, Nifty below 25,650; what’s next?

Domestic equity benchmarks Sensex and Nifty ended Thursday’s session on a weak note, snapping their three-day winning streak, as subdued global cues, broad-based profit booking, and selling pressure in metal stocks weighed on market sentiment.

At close, the Sensex declined 503.76 points, or 0.60 per cent, to settle at 83,313.93, while the Nifty slipped 133.20 points, or 0.52 per cent, to end at 25,642.80. 

Eternal emerged as top loser on the Sensex, falling 2.46% to Rs 287. Bharti Airtel followed with a 1.61% decline, while Bharat Electronics (BEL), ITC, ICICI Bank and Reliance Industries dropped 1.54%, 1.15%, 1.14% and 0.96%, respectively. 

Trading activity was primarily selective and stock-specific, with modest interest in export-oriented and select cyclical stocks offset by profit-taking in recent outperformers, resulting in subdued benchmark performance, said Ponmudi R, CEO of Enrich Money.

Five stocks, namely ICICI Bank, Reliance Industries (RIL), Bharti Airtel, HDFC Bank and Eternal, contributed heavily to the Sensex’s fall.  

Among sectoral indices, the BSE Metal index declined 1.05% to close at 39,222.37, while the BSE IT slipped 0.76% to settle at 34,843.08. 

In the Sensex index, shares of Adani Ports & Special Economic Zone, Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) hit their fresh 52-week high on BSE. 

Market breadth remained negative on the BSE. Of the 4,342 actively traded stocks, 1,721 ended in the green, while a dominant 2,468 declined and 153 settled unchanged. The session saw 75 stocks scaling fresh 52-week highs, compared with 94 counters sliding to new 52-week lows. In addition, 181 scrips were locked at their upper circuits, whereas 147 hit lower circuit limits.

“Nifty 50 remained locked in a tight consolidation, with repeated failures to sustain moves on either side. After an early dip, the index found support in the 25,580–25,600 zone, which acted as a consistent demand area through the session. Upside attempts were capped near the 25,700–25,750 resistance band, indicating persistent supply at higher levels,” said Ponmudi.

"Global cues added further pressure, with concerns over a broad-based tech sell-off in international markets and heightened US–Iran tensions leading to risk-off sentiment. Metals and small-cap stocks were key underperformers, while broader indices reflected cautious trading. Market participants are now turning their attention to the upcoming RBI policy meeting. With India’s growth outlook remaining strong, consensus expectations point toward a status quo on rates," said Vinod Nair, Head of Research, Geojit Investments Limited.