Markets End Marginally Lower As IT Rebounds, Broader Selling Drags Nifty Below 24,400

Indian benchmark indices ended marginally lower on Tuesday, as a late-session sell-off erased intraday gains, with weakness in the broader market outweighing a strong rebound in information technology (IT) stocks. The rupee, however, posted its biggest single-day gain in recent sessions as easing crude oil prices lifted sentiment.

The Sensex closed 104.35 points, or 0.13%, lower at 78,180.72, while the Nifty 50 declined 31.65 points, or 0.13%, to settle at 24,398.70 after a volatile trading session. Market breadth remained weak, with 2,554 stocks declining against 1,492 advances on the NSE.

Among the Nifty constituents, Infosys, Tech Mahindra, HCL Technologies, Titan Company and SBI Life Insurance were the top gainers. On the losing side, Trent, Adani Enterprises, Bharat Electronics, Adani Ports and Cipla weighed on the benchmark.

Sectoral performance was mixed. Nifty IT emerged as the top-performing index, rising 2.4%, followed by Consumer Durables, which gained 0.9%. On the downside, Realty fell 1.5%, while Metal declined 1%. Energy, Pharma and Media indices also ended around 0.7% lower.

The broader market underperformed the benchmarks, with the Nifty Midcap 100 declining 0.4% and the Nifty Smallcap 100 falling 0.55%.

IT Stocks Rebound

Technology stocks staged a sharp recovery after recent weakness, helping limit losses in the benchmark indices.

Infosys climbed nearly 4%, while Tata Consultancy Services gained around 3%. Tech Mahindra rose 3.4% and Mphasis advanced about 3%, even as Asian technology shares remained under pressure following a sharp sell-off in South Korean semiconductor stocks. Wipro was the only major exception, ending 0.76% lower.

The recovery in IT counters came despite cautious global sentiment towards technology stocks, with investors selectively accumulating large-cap software exporters after recent corrections.

Rupee Strengthens As Softer Crude Supports Sentiment

The Indian rupee appreciated 43 paise to close at 94.97 against the US dollar, recovering after three consecutive sessions of losses.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, the rupee strengthened after Saudi Arabia reduced August crude oil prices for Asian buyers, easing concerns over India's import bill.

He said softer crude prices, improving risk sentiment and short covering supported the domestic currency. However, he added that movements in global energy markets and the US dollar would continue to drive the rupee, with the currency expected to trade in the 94.60-95.30 range in the near term.

Bank Nifty Consolidates After Recent Rally

Vatsal Bhuva, Technical Analyst at LKP Securities, said Bank Nifty continued to consolidate after its recent breakout, forming a small bearish candlestick on the daily chart.

He noted that while the Relative Strength Index (RSI) has started flattening above the 60 level, indicating some cooling in momentum, the broader trend remains positive. According to Bhuva, support is placed at 57,500, while resistance is seen in the 58,500-58,800 zone.

He advised traders to maintain a buy-on-dips approach near support levels while considering profit booking as the index approaches the resistance band, suggesting that the broader bullish structure remains intact despite the ongoing consolidation.