Stock market today: Sensex slips 215 pts, Nifty below 25,650; Kwality Wall’s shares drop 3%

Domestic benchmark indices Sensex and Nifty opened Tuesday’s session in the red, tracking subdued global cues and selling pressure in heavyweight stocks such as Eternal, Trent and Reliance Industries, weighing on broader market momentum.

At 9:15 am, the BSE Sensex declined 215.14 points, or 0.26%, to 83,062.01. The NSE Nifty slipped 78.95 points, or 0.31%, to 25,603.80.

Domestic institutional investors continue to provide an underlying cushion, helping to offset irregular FII outflows, said Ponmudi R, CEO of Enrich Money. “However, near-term sentiment remains cautious amid persistent weakness in the IT sector on AI-disruption concerns, along with selective profit booking and mixed global cues,” he added.

Among Sensex constituents, Kwality Walls (India) declined 3.42% to Rs 28.50. Eternal slipped 1.78%, while Trent, UltraTech Cement, and Reliance Industries dropped 0.90%, 0.86% and 0.77%, respectively. 

On the technical front, Ponmudi highlighted that the 50-pack index has formed a bullish engulfing pattern on the daily chart, rebounding sharply from the 25,450 mark and reclaiming key moving averages, “indicating the possibility of further upside continuation,” he said.

Asian markets traded mixed. At last check, Japan’s Nikkei 225 was down 0.80% to 56,354.55, while South Korea’s Kospi slipped 0.28% to 5,507.01. Hong Kong’s Hang Seng Index gained 0.52% to 26,705.94.

Wall Street ended on a flat-to-mixed note overnight, with two of three major indices closed in the green. The S&P 500 edged up 0.05% to close at 6,836.17, while the Dow Jones Industrial Average rose 0.1% to 49,500.93. The Nasdaq Composite declined 0.22% to settle at 22,546.67.

“The market will respond to geopolitical developments like the US-Iran standoff. Corrections can be used as buying opportunities. The impressive credit growth happening now has positive implications for leading banking stocks, which are fairly valued,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

In the previous session on Monday, the Sensex advanced 650.39 points, or 0.79 per cent, to end at 83,277.15, while the Nifty gained 211.65 points, or 0.83 per cent, to settle at 25,682.75.  

“For day traders, 25,600/83000 and 25,500/82700 would act as key support zones. As long as the market is trading above these levels, the pullback formation is likely to continue. On the higher side, it could bounce back to 25,800–25,875/83500-83700. On the flip side, below 25,500/82700, the sentiment could change. If the market falls below this level, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.