Sensex, Nifty end lower after volatile session

Indian equity markets ended the day lower following a volatile trading session on Monday, pressured by declines in information technology and oil and gas stocks.

Investors remained cautious amid mixed global signals after reports emerged of a U.S. military operation in Venezuela leading to President Nicolas Maduro’s capture.

The Nifty closed at 26,250.30, recording a decline of 78.25 points (0.3%). Analysts observed: “The 26,300–26,350 range now forms a critical resistance level. A decisive breakout above this zone could reignite bullish momentum toward 26,500 in the short term.”

They added: “Conversely, sustained trading below 26,200 might trigger a corrective decline toward 26,050–26,000 support levels.”

The Sensex mirrored this trend, closing at 85,439.62 with a loss of 322.39 points (0.38%). This decline followed a morning rally that saw the Nifty reach a fresh all-time high of 26,373.20 before profit-taking in afternoon trade reversed gains.

Major contributors to the downturn included heavyweight stocks such as HDFC Bank, Infosys, HCLTech, Bajaj Finance, and TCS. Conversely, Bharat Electronics, Hindustan Unilever, Tata Steel, UltraTech Cement, and Axis Bank cushioned losses as top performers.

Broader market performance showed divergence, with the Nifty Midcap index dipping 0.16% and the Nifty Smallcap index retreating 0.53%.

Sectoral analysis revealed significant pressure on technology and energy stocks. The Nifty IT and Nifty Oil & Gas indices both fell approximately 1%, while real estate stocks surged over 2% as reflected in the Nifty Realty index’s strong performance. FMCG and consumer durable sectors also posted gains, indicating continued investor preference for defensive plays.

Market observers noted that upcoming third-quarter earnings reports will dictate near-term market direction, with sentiment remaining cautiously optimistic.

(With inputs from IANS)