“The Nifty has been witnessing a pullback over the last two days, which is absolutely normal considering the 1,000-point rally that preceded it. In fact, such minor corrections are healthy for a sustained uptrend. In the short term, support is placed at 25,050, and the overall structure remains intact as long as the index holds above this level. A decisive break below 25,050 could extend the correction towards 24,800. On the upside, resistance is seen at 25,250. A move above this level could signal a resumption of the uptrend,” Rupak De, Senior Technical Analyst at LKP Securities, said.
The S&P BSE Sensex dropped 0.56%, or 466 points, to 82,160. Market breadth remained weak, with the advance-decline ratio at 2:3, reflecting broad-based selling pressure across sectors.
The Nifty IT index slumped more than 3%, with all 10 constituents ending in the red. Large-cap IT majors like Infosys, TCS and Wipro dropped between 2% and 3%, while mid-cap names like Coforge and LTI Mindtree fell up to 5%.“Renewed worries about U.S. visa norms could impact hiring and margins for Indian IT exporters at a time when demand recovery remains slow,” said a Mumbai-based analyst at a domestic brokerage.
Banking and financial stocks also slipped, with the Nifty Bank index down 0.3% and non-banking lenders like Bajaj Finance easing. Pharma names extended losses, with Cipla and Glenmark shedding 2-3%, weighing on the sectoral index.
Among gainers, Adani Group companies rose between 5% and 20%, extending Friday’s rally on continued buying interest from domestic and foreign funds. Muthoot Finance climbed 4% as gold prices hit fresh record highs, boosting sentiment for lenders against gold collateral.
Select order-driven names were also in demand, with NBCC and Netweb Technologies rising 4-6% after securing fresh contracts. Hindustan Copper jumped 6% on news of a mining lease extension, while shipbuilding stocks Garden Reach Shipbuilders and Shipping Corporation of India rose 3-4% after the sector was accorded infrastructure status.
Auto stocks were mixed after the implementation of a GST rate cut, leaving the Nifty Auto index down 0.3%.
