Indian equity markets ended Wednesday’s session with modest gains, clawing back part of the sharp losses recorded a day earlier, as investors stepped in to selectively buy beaten-down stocks while remaining cautious amid lingering concerns around global cues and sector-specific headwinds. The benchmarks spent most of the session in a narrow range, reflecting a fragile recovery rather than a decisive turnaround in sentiment.
The Sensex closed slightly higher, while the Nifty managed to hold above the 25,450 mark, supported by buying interest in metals, select financials and industrial stocks. The recovery followed a steep sell-off on Tuesday, when heavy selling in information technology stocks had dragged the indices sharply lower. Wednesday’s move appeared driven largely by short covering and bargain hunting at lower levels, rather than fresh risk-taking.
"Nifty 50 opened today with a gap-up above the immediate resistance of 25,500 but failed to sustain higher levels. Sharp profit booking through the session erased most of the early gains," says Hariprasad K, a SEBI-registered research analyst and Founder, Livelong Wealth.
According to him, the 25,350–25,400 zone now stands as the immediate and crucial support. "A decisive break below this band could expose the index to the next major OI-backed support at 25,000, where 1.35 crore put OI is positioned," he said.
On the upside, Prasad says, resistance remains firmly placed at 25,500 followed by 25,700. Technically, the index continues to oscillate within the 25,350–25,700 range, indicating a neutral consolidation phase. RSI (14) at 46 reflects weak momentum, with no clear strength on either side. India VIX declined by 4%, suggesting reduced volatility despite intraday swings. Overall, unless Nifty breaks out of the 25,350–25,700 range, the market is likely to remain directionless in the near term, he added.
Market breadth was relatively supportive, with gains in the broader market outpacing the frontline indices. Mid-cap and small-cap stocks saw better participation, suggesting that domestic investors were willing to selectively add exposure despite ongoing volatility. However, trading volumes remained moderate, underlining the cautious tone.
Sectorally, metal stocks emerged as the strongest performers, aided by firm global commodity prices and optimism around demand prospects. Shares of steel and mining companies attracted sustained buying through the session. Capital goods and infrastructure-linked stocks also saw interest, reflecting expectations of continued public spending and order inflows.
In contrast, the IT sector, which had borne the brunt of selling pressure in recent sessions, staged only a tentative rebound. While some large IT names recovered part of their losses, the sector continued to underperform the broader market as investors remained wary of earnings visibility and structural concerns linked to changing global technology spending patterns. Select heavyweight stocks in energy and banking also capped the upside for the benchmarks, preventing a sharper rebound.
Global cues were largely supportive, with Asian markets trading mixed to positive and overnight signals from the US offering some relief after recent volatility. This helped stabilise sentiment locally, though investors remained alert to external risks, including developments on global trade, interest rate expectations and geopolitical factors.
From a broader perspective, Wednesday’s close highlighted the market’s attempt to stabilise after a bout of aggressive selling. The ability of key indices to hold recent support levels has eased immediate downside fears, but the lack of strong follow-through buying suggests that confidence remains tentative. Market participants appear to be rotating within sectors rather than making broad directional bets, as they wait for clearer signals from earnings trends and global macro developments.
Overall, the session reflected a pause in the recent decline rather than a clear shift back to a strong bullish trend. While near-term recovery attempts may continue if global cues remain benign, volatility is likely to persist, with stock-specific action dominating trade. Investors are expected to stay selective, balancing opportunities created by recent corrections against unresolved risks in key sectors such as IT and the broader global environment.