Sensex Drops 300 Points, Nifty Slips Below 25,100 Amid Profit Booking

Indian equity markets opened lower on Wednesday as profit booking intensified after recent gains, leading to early losses across benchmark indices.

At 9:22 am, the S&P BSE Sensex fell 309 points to 81,792.86, while the NSE Nifty50 slipped 100 points to 25,069.45. Broader market indices also recorded early declines, reflecting persistent selling pressure.

Among the Nifty50 stocks, laggards included Tata Motors, Hero MotoCorp, Tech Mahindra, Wipro, and Bajaj Auto. On the upside, Trent, SBI, Maruti, Asian Paints, and ONGC stood out as session gainers.

Market Insights

• Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted concerns over elevated global asset prices, echoing US Fed Chair Jerome Powell’s warnings about inflation risks. He noted that although Nifty remains ~4% below its September 2024 peak, valuations are still above historical averages, particularly in smallcaps, which may face further corrections. Investors are advised to prioritise growth prospects and reasonable valuations amid market volatility.

• Anand James, Chief Market Strategist at Geojit Investments, provided a technical outlook, stating: “The 25,000 level on Nifty supports the downside, but resistance near 25,278 limits upside. A close above 25,330 is needed to indicate stronger momentum; otherwise, Nifty may remain in the 24,880–24,800 range.”

• Prashanth Tapse, Senior VP (Research) at Mehta Equities, cited global and domestic headwinds, including Powell’s stagflation warnings, US tariffs on Indian exports, and the $100,000 one-time H-1B visa fee. He also noted the rupee’s record fall to 88.5 against the dollar, triggering heavy FII outflows of Rs 17,034 crore in September. A decisive close above 25,466 is necessary for sustained Nifty gains; otherwise, volatility is expected to persist.

Investors are advised to exercise caution as markets digest profit-taking and global cues amid ongoing macroeconomic uncertainties.