Indian equity markets ended Tuesday's session on a negative note, with the Nifty 50 closing 0.36% lower at 23,329 and the Sensex declining 0.27% to settle at 74,653. As per Mint, the markets erased their previous session's gains amid sharp declines in technology, financial and FMCG stocks. Despite the selling pressure, the markets staged a notable recovery from their intraday lows, showing resilience at lower levels. The GIFT Nifty was trading around the 23,342 level, down nearly 53 points from the Nifty futures' previous close, indicating a negative start for Wednesday's session. Among the 30 Sensex firms, Eternal, HDFC Bank, Adani Ports and IndiGo shares gained around 1% each to lead gains, while HCL Tech, Infosys, Tech Mahindra and TCS shares dropped around 1-2%. IndiGo emerged as the top gainer, rising 1.85% to ₹5,011, opening at ₹4,925 against a previous close of ₹4,920, on volumes of 38,690 shares worth ₹1,928.73 lakhs.
US President Donald Trump said officials had "very good" talks with Iranian envoys in New York, raising hopes for a new diplomatic solution to the war in the Middle East. As per NDTV Profit, Trump said the three-hour session was "very productive", and another was being planned for the near future. The talks were held on the sidelines of the United Nations General Assembly gathering. Crude oil prices extended losses on hopes for diplomatic progress in the US-Iran war in the Middle East and encouraging news about oil exports from the region. Brent futures fell 0.21% to $99.04 a barrel, while WTI crude futures declined 0.48% to $90.09 a barrel. West Texas Intermediate for November delivery slipped below $90 a barrel after falling around 10% over the previous five sessions, while Brent settled near $99 a barrel on Tuesday. The decline came as concerns around supply eased, providing some relief to oil-importing economies such as India.
Asian stock markets traded higher on Wednesday, as oil prices fell on hopes of a peace deal for the Mideast conflict after US-Iran talks. As per NDTV Profit, South Korea's Kospi gained 1.08%, while the Kosdaq rose 0.93%. Hong Kong Hang Seng index futures indicated a higher opening, while Japan's markets are closed for a holiday. US stock market ended mixed on Tuesday, with the Nasdaq notching second straight record high close, lifted by gains in technology and AI-related stocks. The Dow Jones Industrial Average declined 0.36% to 51,863.69, while the S&P 500 was flat at 7,764.64. The Nasdaq closed 0.45% higher at 27,244.28, extending its winning streak to five sessions, marking the Nasdaq 100's longest winning run since April this year.
Broader markets also remained under pressure, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices finishing the session in the red, indicating broad-based selling across market segments. Most of the sectoral indices traded in the green, but Nifty IT dropped around 1%, highlighting selective sectoral performance. The overall market breadth turned negative, with NSE seeing 916 declines against 2,065 advances, while 108 stocks remained unchanged. Analysts highlighted a possible sectoral shift towards fairly valued largecaps and improving technical momentum as key factors driving the market performance, though Tuesday's session showed mixed results across different market segments.
"Indian equities are likely to remain sideways to marginally positive in the near term, although global volatility remains elevated. Developments in West Asia, movements in Brent crude, foreign flows and global cues will remain key near-term drivers," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd. On the Sensex outlook, Sachin Gupta from Choice Equity Broking noted that the 75,000 level emerged as a strong resistance zone, from which the index faced selling pressure and formed a bearish daily candle. The RSI stands at 35.51, while its RSI-based moving average is at 33.17, showing that momentum remains weak even as the RSI has moved above its average. Overall, the Sensex is likely to remain within a 74,000–75,000 range unless either boundary is decisively breached. On the Nifty 50 outlook, Rupak De from LKP Securities said the index has formed a bearish engulfing pattern on the daily chart, suggesting waning bullishness in the market. The sentiment looks weak, with immediate support placed at 23,300, below which the index might fall towards 23,000, while resistance is placed at 23,400, above which the index might move towards 23,600 and higher.
