Nifty, Sensex Take A Pause As Global Rout Hits Sentiment: Market Wrap

The Indian benchmark indices took a breather from a record rally to close lower on Wednesday as sentiment was hit after a rout in global stocks. The closing came after Asian stocks plunged, tracking the overnight losses in the US markets, led by weak economic data and easing oil prices on weak global demand.

The NSE Nifty 50 ended 0.32% or 81.15 points, down at 25,198.70, while the S&P BSE Sensex declined 0.25% or 202.80 points, to close at 82,352.64. Intraday, the Nifty fell as much as 0.78% to 25,083.80 and Sensex plunged 0.87% to hit a low of 81,833.69.

Selective buying in heavyweight stocks helped trim the losses as the session progressed, according to Ajit Mishra, senior vice president of research at Religare Broking Ltd.

"This move indicates that the bulls are still holding their ground, though consolidation could occur if global pressures intensify. We recommend maintaining a focus on stock selection and trade management, with the support zone for Nifty remaining strong at 24,850–25,000," he said.

India's bull run is only past the halfway mark, but a mix of fundamental and technical factors have Asia's third-largest market poised for a temporary correction, according to Morgan Stanley analysts.