Markets witnessed a corrective session on Wednesday, snapping Tuesday’s gains amid weak global cues and sector-specific pressure. The Nifty opened gap-down and drifted lower, followed by a range-bound phase for most of the session. It eventually settled near the day’s low at 24,378.10, declining ~0.81%.

Sectorally, the tone was mixed, with a sharp sell-off in IT stocks, while auto, banking, and financials also witnessed profit booking after the recent rally. However, select names from the energy, FMCG, and realty space showed relative resilience. Notably, broader markets remained relatively stable, with midcaps ending flat and smallcaps gaining over 1%, indicating selective participation.

The decline was primarily driven by a sharp correction in IT stocks following disappointing outlook commentary from a major player, HCL Tech, which weighed on the entire sector. Additionally, renewed geopolitical concerns surrounding US–Iran developments kept crude oil prices elevated near the $100 mark, impacting overall sentiment. Profit booking after the recent multi-day rally also contributed to the downside pressure.

Going ahead, the Nifty is likely to witness a phase of consolidation; however, the underlying bias remains positive, with support intact in the 24,000–24,200 zone. Participants should closely track sectors and themes showing rotational strength—such as metals, energy, railways, and defence—and consider accumulating quality stocks on dips.

Ajit Mishra – SVP, Research, Religare Broking Ltd