However, post 10 am, profit booking at higher levels set in, keeping the Nifty under pressure for the remainder of the session but the index held onto 24,800 level.
Ultimately, the index closed with a loss of 41 points at 24,812.
Despite the broader negative trend, IndusInd Bank, Titan, and Trent emerged as the top performers on the Nifty, showcasing resilience. Conversely, TCS, Adani Ports, and Hindustan Unilever bore the brunt of significant selling pressure, concluding the session as major losers.
The Nifty Midcap and Smallcap Indices continued their downward journey for the second day in the row where Nifty Midcap 100 Index fell by 0.46%, while the Nifty Smallcap 100 Index corrected 0.23%.
Among stocks, Avenue Supermarts saw buying, rising 4% as the company opens a store in Uttar Pradesh. This is first major store opening in UP after city of Ghaziabad.
Auto stocks closed largely higher with Maruti Suzuki, Eicher Motors and Mahindra & Mahindra being top gainers. The Nifty Auto index rebounded 2% from the day’s low after sources told CNBC-TV18 that India may turn to Australia as an alternative source for rare-earth magnets.
Shares of Hindustan Zinc Ltd. declined 6% in early trade on Wednesday, June 18, after its promoter Vedanta Ltd. sold 1.6% equity in the company worth ₹3,028 crore in block deals.
On the macro front, all eyes will be on US Fed’s policy outcome later today. While interest rates are expected to remain unchanged, Fed’s commentary on the path ahead would be closely followed, especially in light of weak macroeconomic data and the recent tariff-related actions.
Siddhartha Khemka of Motilal Oswal expects Thursday’s session to be guided by global cues including the Fed policy outcome and developments on the geopolitical front. Benchmark indices are anticipated to remain range-bound, with possible rotation toward defensive sectors amidst global uncertainty.
According to Nandish Shah of HDFC Securities, the Nifty again failed to surpass the crucial resistance level of 25,000, concluding the session on a weak note. Despite this intraday pressure, the Nifty remains in a consolidation phase positionally, with 24,700 now serving as a key support level on the downside. On the higher side, 25,000 level continues to act as a strong resistance.
The index remained volatile throughout the day as updates related to the Israel-Iran conflict and the possibility of US kinetic intervention weighed on global sentiment.
Additionally, anticipation ahead of the upcoming Fed meeting contributed to the instability in the Indian market.
“On the technical front, Nifty closed below the crucial support level of 24,850. However, a positive surprise from the Fed could lift both global and domestic markets, helping them shake off prevailing negativity. On the upside, a decisive reclaim of 24,850 may trigger a rally towards 25,000 and higher, while a failure to move back above this level could drag Nifty down towards 24,500,” said Rupak De of LKP Securities.
