Indian Stock Markets See Correction as RIL and HDFC Bank Shares Sell Off

The Indian stock markets witnessed a correction on Wednesday as the benchmark indices, Sensex and Nifty, closed lower, bringing an end to a four-day rally. The downturn was primarily driven by selling in blue-chip stocks such as Reliance Industries (RIL) and HDFC Bank.

In a volatile trading session, the 30-share BSE Sensex declined by 153.09 points, or 0.19%, to settle at 81,773.66. The index fluctuated significantly throughout the day, hitting a high of 82,257.74 and a low of 81,646.08, with a range of 611.66 points.

Similarly, the 50-share NSE Nifty dropped by 62.15 points, or 0.25%, to close at 25,046.15. Profit-taking in the auto, real estate, and banking sectors contributed to the market's decline, according to analysts.

Among the Sensex constituents, Tata Motors, Mahindra & Mahindra, Bharat Electronics, UltraTech Cement, Trent, Sun Pharma, Power Grid, and Reliance Industries were the major laggards. On the other hand, Titan, Infosys, Tata Consultancy Services, HCL Tech, and Tech Mahindra were among the biggest gainers.

Vinod Nair, Head of Research at Geojit Investments Limited, commented, “Key indices witnessed a volatile session, tempered by profit booking after a sharp rally. Investor caution dominated ahead of the Q2 earnings season, as market participants reassessed valuations and growth prospects.”

Ajit Mishra, SVP of Research at Religare Broking Ltd, added, “Markets traded sideways on Wednesday and ended with a mild downtick, taking a breather after the recent surge. After a quiet start, the Nifty moved within a narrow range for most of the session and eventually settled near the day's low at 25,046.15.”

The BSE midcap gauge declined by 0.74%, and the smallcap index dipped by 0.42%. Among the sectoral indices, realty declined by 1.88%, power by 1.49%, auto by 1.35%, and utilities by 1.29%. However, the BSE Focused IT index surged by 1.67%, the IT index jumped by 1.50%, the teck index by 1.34%, and the consumer durables index by 0.37%.

The market sentiment was reflected in the performance of individual stocks, with 2,434 stocks declining, 1,740 advancing, and 156 remaining unchanged on the BSE.

Foreign Institutional Investors (FIIs) turned buyers on Tuesday, purchasing equities worth Rs 1,440.66 crore, according to exchange data. In the broader Asian markets, Japan's Nikkei 225 and Hong Kong's Hang Seng indices settled lower, while markets in China and South Korea were closed for holidays.

European markets were trading higher, and US markets ended lower on Tuesday. Global oil benchmark Brent crude prices increased by 1.16% to USD 66.21 per barrel.

On the previous trading day, the Sensex had gained 136.63 points, or 0.17%, to settle at 81,926.75, while the Nifty edged higher by 30.65 points, or 0.12%, to close at 25,108.30.