Market sentiment remained negative, with 42 of 50 Nifty constituents ending in the red. The index ended Tuesday session shedding 262 points or 1.05% to close at 24,684.
The Nifty Midcap100 and Smallcap100 indices closed weak. Midcap 100 fell 1.62% while Smallcap 100 dropped 0.94%.
All sectoral indices closed in red, with Auto, Healthcare, Media, and Pharma experiencing the heaviest losses. Auto stocks were particularly weak, with three of the top four Nifty losers from this sector, amid valuation concerns and an uncertain demand outlook.
Defence stocks declined for the second consecutive day, falling between 2% and 8%.
Eternal was the top Nifty 50 loser, down 4% after shareholders approved capping foreign ownership at 49.5%.
Zydus Lifesciences shares fell 3% after the company reported US sales lower than estimates. In constant currency terms, the business registered revenues of $363 million, compared to $285 million in the last quarter and $304 million in the same quarter a year ago. The US contributes nearly 50% to Zydus Life’s overall topline.
Hindalco shares recovered 2% from day’s low following an operational beat in Q4. EBITDA for the quarter increased by 35.5% from last year to ₹3,008 crore, while margins expanded to 11.98% from 10.03% last year.
Going ahead, market attention will also shift to earnings reports from Oil and Natural Gas Corporation, Colgate-Palmolive (India), Interglobe Aviation, IndusInd Bank, NTPC Green Energy, Power Finance Corporation, Oil India, ONGC, Ircon International, National Aluminium Company, Rail Vikas Nigam, VA Tech Wabag, among others.
Additionally, Dixon Technologies, Gland Pharma, among others, which released its earnings after market hours today, will also remain in focus.
Technically, the Nifty closed below its 5-day EMA for the first time since May 8, 2025, suggesting a shift to profit-booking, said Devarsh Vakil of HDFC Securities. “Support levels lie at 24,494 and 24,378, while resistance is expected in the 24,800-24,900 range.”
LKP Securities’ Rupak De said the Nifty slipped after two days of consolidation, dragged down by broad-based selling and weakening market breadth. Despite this decline, the short-term trend remains strong, although there is a possibility of a deeper pullback toward the 21-day EMA on the daily timeframe.
“If Nifty sustains below 24,700, the correction could extend further, potentially towards 24,300. However, if the index moves back above 24,700, it may signal a return to a consolidation phase,” he added.
Ajit Mishra of Religare Broking believes investors should not overreact to the recent dip and instead wait for clearer signals. While the breach of the 24,800 mark in Nifty has dampened near-term momentum, the short-term trend remains positive as long as the index holds above the 24,400 level decisively, he said.
