MUMBAI: Indian equity markets began Wednesday’s session on a cautious and slightly subdued note after the strong rally seen in the previous session. Early trade showed the benchmarks struggling to sustain momentum, with the Nifty 50 opening close to 25,720–25,730 levels and the BSE Sensex trading around 83,650–83,700 in the first hour of dealing. These levels reflected only a small net change from the previous close, signalling that investors were reluctant to extend the sharp gains recorded on Tuesday, when optimism around a proposed India–US trade agreement had driven a notable upswing.
At 10.30 AM, the BSE Sensex was down 88 points from the previous closing, while the Nifty50 lost 2 points at 25,725.
The tentative opening marked a shift from the near-euphoric sentiment seen on Tuesday, when both indices surged strongly on hopes of tariff relief and improved trade ties. Profit-booking emerged early in the session as traders took chips off the table after Tuesday’s significant rebound, and this was compounded by weakness in some key sectors. Information technology stocks, in particular, came under pressure in the opening trade, dragging on broader sentiment and reminding participants that the rally’s drivers must be weighed against other risks.
Global influences also played a role in shaping the Indian market’s cautious start. Mixed cues from major overseas markets and a softening trend in certain global sectors contributed to a lack of conviction among domestic buyers. The Indian rupee’s modest weakening against the US dollar in early trade added another layer of caution, especially for foreign investors and currency-sensitive industries.
Despite the subdued opening, the broader technical picture still suggests resilience in market structure. The Nifty has held above key support bands established during recent trading, and this has prevented a sharper downturn. Analysts view Wednesday’s early weakness as part of a normal consolidation following a strong rally rather than the start of a deeper correction. Many traders adopted a wait-and-watch approach in the first hour, seeking fresh catalysts or clearer directional cues before committing to significant positions.
In addition to the benchmark indices, specific stocks and sectors drew attention early on. Large-caps that had performed strongly in Tuesday’s rally, such as major industrial and financial names, were under scrutiny for further directional cues. Export-oriented companies and those expected to benefit from improved tariff conditions remained on traders’ watch lists, while technology and IT services names faced selling pressure on concerns over global sector performance.
Overall, Wednesday’s opening reflected a cautious market taking stock of recent gains, with the early trend pointing to consolidation rather than a decisive breakout. Investors were balancing the optimism around trade deal prospects with profit-booking and external risk factors. As the session progresses, market participants are likely to focus on sector performance, reaction to global cues and any fresh data or corporate developments that might reinforce or temper the recent bullish sentiment.