Sensex, Nifty struggle for direction amid weak global cues; midcaps, smallcaps outperform

Nifty Auto, Metal, IT, and Pharma came under selling pressure

After a strong two-day bull run, the markets took a breather on April 16, with benchmark indices Sensex and Nifty wavering between gains and losses during the afternoon session, influenced by weakness in global cues. Despite this pause, midcap and smallcap stocks outshone climbing nearly 1 percent, while the India VIX, a measure of market fear, continued its downward trend, falling another 3 percent, signaling cooling volatility.

Around noon, the Sensex was trading with a marginal gain of 3 points at 76,737, and the Nifty mirrored the movement, up just 3 points or 0.01 percent at 23,332. Overall market sentiment remained upbeat, as shown by broadly positive market breadth—with 2,235 stocks advancing, 1,053 declining, and 117 remaining unchanged.

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On the sectoral front, indices such as Nifty Auto, Metal, IT, and Pharma came under selling pressure, registering losses in the range of 0.1 percent to 0.6 percent. In contrast, Bank Nifty acted as a cushion, helping to limit overall market losses.

Within the banking pack, public sector lenders outperformed their private counterparts, with shares of State Bank of India (SBI) and Bank of Baroda climbing as much as 1 percent in intraday trade on April 16.

Shridatta Bhandwaldar, Head of Equities at Canara Robeco Mutual Fund, remains positive on India’s medium-term prospects. He emphasised that capital flows are likely to shift towards emerging markets, including India, as global investors seek better returns outside the US.

“Despite signs of an economic slowdown, India's macro-fundamentals remain resilient, with both government and corporate balance sheets in solid shape. We anticipate a recovery in corporate earnings, with low double-digit growth, supported by moderating inflation and possible interest rate cuts by the RBI. As we move into FY26, we expect a gradual improvement in both earnings and broader market performance, underpinning a positive outlook for the medium term,” Bhandwaldar said.

Anand James, Chief Market Strategist at Geojit Financial Services, echoed a similar view, noting that as volatility continues to decline, the probability of Nifty moving upward toward 23,390 levels remains strong.

“With the India VIX having dropped significantly, the chance of a renewed upward move and a break above the 23,390 mark is quite high—provided dips remain well-supported above the 23,080 to 22,975 range. This scenario keeps the 24,000 mark as a realistic and optimistic target,” James added.