Daijiworld Media Network - Mumbai
Mumbai, Feb 5: Indian equity benchmarks closed lower on Thursday, snapping a three-day winning streak as investors stayed cautious amid uncertainty over global macroeconomic developments and foreign institutional investor (FII) flows.
At the close of trade, the Sensex slipped 503 points, or 0.60 per cent, to end at 83,313, while the Nifty fell 113 points, or 0.52 per cent, to settle at 25,642.
Broader markets underperformed the frontline indices. The Nifty Midcap 100 declined 0.28 per cent, while the NSE Smallcap 100 registered sharper losses, shedding 1.29 per cent.
Sectoral performance was largely negative, with most indices ending in the red. Nifty PSU Bank emerged as the lone gainer, rising 0.38 per cent. Metal stocks bore the brunt of the selling, with the Nifty Metal index dropping 1.02 per cent. The IT and auto indices also fell more than 0.5 per cent each.
Analysts said trading remained largely selective and stock-specific, with modest buying interest seen in export-oriented and select cyclical stocks. However, profit-booking in recent outperformers weighed on overall sentiment, keeping benchmark indices subdued.
Market observers noted that the Bank Nifty continued to trade below its rising trend line and the intraday volume-weighted average price (VWAP) zone of 60,150–60,180, indicating a weak short-term technical structure and the absence of sustained bullish momentum.
In the currency market, the Indian rupee moved within a narrow range against the US dollar and was quoted at 90.32 per dollar, reflecting balanced demand and supply conditions amid steady global cues.
Investors are also closely tracking developments on the geopolitical front, particularly awaiting further clarity on the progress of negotiations between the United States and Iran.
On the technical front, analysts said the Nifty 50 remains locked in a tight consolidation phase, with repeated failures to sustain moves on either side. After an initial dip, the index found consistent support in the 25,580–25,600 zone throughout the session.
The short-term bias for the market remains sideways to mildly weak, with the Nifty likely to oscillate in the 25,580–25,750 range unless a decisive breakout or breakdown occurs with strong volumes, analysts added.