Markets fall for 2nd day: Sensex down 200 pts, Nifty below 24,750 as IT, metals decline

Laggards on the index included Dr Reddy's, ONGC, Cipla, Tata Steel, and JSW Steel.

Benchmark indices Nifty and Sensex were off to a weak start, kicking off the new month on a cautious note as fresh tariff actions by the US weigh on sentiment. In a surprise move, Donald Trump has raised import duties on Canadian goods to 35 percent from 25 percent, keeping global investors on edge. HUL was the brightest spark, rising 4 percent and extending gains after strong Q1 earnings.

At about 9:20 am,  the Sensex was down 156.08 points or 0.19 percent at 81,029.50, and the Nifty was down 48.30 points or 0.20 percent at 24,720.05. About 1618 shares advanced, 991 shares declined, and 137 shares were unchanged.

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Sectoral indices traded mixed on Thursday with a slight bearish tilt. Nifty Metal was the biggest laggard, down 1.02 percent, followed by Nifty IT, which slipped 0.77 percent. Nifty PSU Bank and Oil & Gas fell 0.53 percent and 0.44 percent, respectively. The Auto, Bank, Consumer Durables, Private Bank, Midcap 100, and Smallcap 100 indices also edged lower. In contrast, Nifty FMCG was the standout gainer, rising 1.36 percent, while Nifty Media added 0.40 percent. Indices like Energy, Infra, Realty, and Pharma remained flat. Meanwhile, India VIX rose nearly 2 percent to 11.77, indicating a slight uptick in market volatility.

Among individual stocks, Maruti Suzuki rose over a percent after the company reported 2 percent rise in net profit at Rs 3,712 crore for the quarter ended June 30, 2025. The carmaker's revenue rose 8 percent to Rs 38,414 crore in Q1 FY26 as against Rs 35,531 crore a year ago. Jefferies has maintained a Buy rating on Maruti Suzuki, raising the target price to Rs 14,750 from Rs 13,600.

Shares of Swiggy fell as much as 3 percent even as it reported that its net loss widened almost 96 percent year-on-year (YoY) to Rs 1,197 crore in the first quarter (Q1) of financial year 2025-26 (FY26), up from Rs 611 crore in the same period a year ago. The gains follow two foreign brokerages issuing bullish calls on the stock, citing positive growth levels. Jefferies has upgraded the counter to a buy while Morgan Stanley maintained its overweight rating.

Two-wheeler major Eicher Motors rose over 2 percent after it reported a 9 percent rise in consolidated net profit at Rs 1,205 crore for the quarter ended June 30, 2025. Eicher witnessed a 15 percent increase in revenue at Rs 5,042 crore in Q1 FY26. Morgan Stanley has maintained its Underweight rating. The brokerage sees downside risks to consensus margin estimates, adding that the stock appears to be pricing in both high growth and high margins.

Technical View

The support zone at 24,500–24,550 remains critical in the near term, while a convincing breakout above 24,900 could unlock further upside potential. For now, the Nifty continues to trade below the heavy resistance zone of 25,000, which also serves as a psychological barrier. Until this is reclaimed decisively, the overall sentiment remains cautious. Any short-term rally may attract renewed short positions unless backed by strong volumes and follow-through. Additionally, the long-short ratio, hovering around 14 percent, indicates an oversold territory, raising the possibility of a short-covering bounce — but only if the index breaks and sustains above the resistance zone.

Hindustan Unilever, Tata Consumer Products, Hero MotoCorp, Asian Paints, and Maruti Suzuki were the top gainers on the Nifty. Laggards on the index included Dr Reddy's, ONGC, Cipla, Tata Steel, and JSW Steel.

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