Sensex, Nifty snap two-day gaining streak amid volatility; mid, smallcaps tumble nearly 2%

On the Nifty, HDFC Life Insurance, Maruti Suzuki, Bharti Airtel, Power Grid Corporation, and SBI Life were among the top gainers.

Benchmark indices Nifty and Sensex gave up early gains to close in the red, snapping a two-day winning run and ending the month on a tepid note. After a strong rally in recent sessions, analysts say the market may be due for a breather. India VIX, the fear gauge, spiked 5 percent in today’s session to climb past the 18 mark, signalling a rise in market jitters.

At close, the Sensex was down 46.14 points or 0.06 percent at 80,242.24, and the Nifty was down 1.75 points or 0.01 percent at 24,334.20. About 938 shares advanced, 2828 shares declined, and 141 shares unchanged.

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"The rally since April 8 has been driven by easing trade tensions in the US, including potential tariff cuts on China and possible short-term trade deals with key partners like India," said Devarsh Vakil, Head of Prime Research at HDFC Securities. Just a day earlier, US Treasury Secretary Scott Bessent remarked that negotiations with Delhi are progressing smoothly, aided by India’s high tariffs.

Foreign investors continue to lend crucial support. In the past 10 trading sessions alone, foreign institutional investors (FIIs) have pumped in a net Rs 37,325 crore into Indian equities.

“The weakening US dollar and India’s economic resilience have made the country attractive to global investors,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “That said, investors should tread cautiously. After a rewarding rally, some stocks have surged significantly. It’s a good time to book partial profits and raise cash levels in the portfolio.”

As the headline indices slipped, the broader market followed suit. The Nifty Midcap 100 and Smallcap 100 declined 0.7 percent and 1.7 percent, respectively. Despite a strong April, both indices are still down for the year — with losses of 5.3 percent and 12 percent.

Sectorally, Nifty Pharma, Oil & Gas, Infra, FMCG, Realty and Energy ended in the green. Pharma and Oil & Gas were the top performers, gaining 0.6 and 0.4 percent, respectively. On the flip side, Nifty Bank, PSU Bank, IT, and Metal slipped between 0.4 and 2 percent.

Among notable movers, SBI dropped 3 percent amid reports that the state-run lender is mulling multiple fundraising options — including a follow-on public offer (FPO), rights issue or Qualified Institutional Placement (QIP) — for the financial year ending March 2026. A final decision is likely on May 3, pending regulatory approvals from either the government or the Reserve Bank of India.

In contrast, Vishal Mega Mart surged 10 percent after it posted an impressive 88 percent year-on-year jump in net profit to Rs 115 crore for the March quarter of FY25. Adjusted Same Store Sales Growth (SSSG) improved to 13.7 percent, up from 10.5 percent in the previous quarter. Revenue from operations rose over 23 percent YoY to Rs 2,548 crore in Q4, compared to Rs 2,069 crore a year earlier.

On the Nifty, HDFC Life Insurance, Maruti Suzuki, Bharti Airtel, Power Grid Corporation, and SBI Life were among the top gainers. Bajaj Finance, Bajaj Finserv, Trent, Tata Motors, SBI, and UltraTech Cement were the key laggards.

From a technical perspective, Hardik Matalia of Choice Broking noted that the Nifty has support at 24,200, with stronger support levels at 24,100 and 24,000. On the upside, resistance is likely at 24,400, followed by 24,500 and 24,700.

For Bank Nifty, he said support lies at 55,000, then 54,700 and 54,400. If the index rises, resistance could emerge at 55,600, with further hurdles at 55,900 and 56,200.

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