Sensex drops 176 points, Nifty ends below 25,500 as trade concerns linger

Indian equity benchmarks ended in the red on Wednesday, dragged down by cautious investor sentiment ahead of the June quarter earnings season and concerns over India-US trade issues. The 30-share BSE Sensex pack declined by 176 points or 0.21 per cent to close at 83,536, while the broader NSE Nifty index slipped 46 points or 0.18 per cent to settle at 25,476.

Despite the weakness in headline indices, the broader market reflected mixed cues. The BSE MidCap index dipped 0.13 per cent, while the BSE SmallCap index rose 0.59 per cent, highlighting selective investor interest in the wider market.

Sectorally, performance was uneven. Nifty FMCG led the gains, advancing 0.8 per cent on the back of buying interest in consumption-linked stocks. Nifty Auto rose 0.38 per cent, and Nifty Pharma also managed to close marginally in the green. On the other hand, Nifty IT fell 0.78 per cent, mirroring global tech weakness, while Nifty Metal and Nifty Realty were the worst performers of the day, declining 1.40 per cent and 1.49 per cent, respectively.

Vinod Nair, Head of Research at Geojit Financial Services, noted, "The market traded largely range-bound. However, domestic consumption themes provided a cushion. Early signals from FMCG and discretionary companies indicate signs of recovery, aided by easing inflation, favourable monsoon progress, and rising rural demand."

He added that despite global trade uncertainties and concerns over commodity tariffs, investors are increasingly focused on domestic earnings growth and long-term economic drivers such as urban demand recovery and infrastructure spending.

Nifty Technical Outlook

According to Bajaj Broking Research, the Nifty is expected to face resistance at 25,600. A breakout above this level could pave the way for a move towards 25,800. However, a failure to breach this resistance may keep the index in a consolidation phase between 25,600 and 25,330. The broader trend remains positive with key support placed at 25,200–25,000. The domestic brokerage recommends a 'buy-on-dip' strategy as long as the index remains above this zone.