The Indian benchmark indices snapped their six-day winning streak to end lower after a volatile session on July 25 amid weak global cues and selling in auto and oil & gas names.
At close, the Sensex was down 306.01 points, or 0.55 percent, at 55,766.22, and the Nifty was down 88.50 points, or 0.53 percent, at 16,631.
The market opened marginally lower and remained under pressure throughout the day. Some buying in the second half helped the indices to narrow the losses.
"Markets opened lower on the back of weak global cues but recovered during the day in a volatile session as the street took stock of few big earnings over the weekend," said S Ranganathan, Head of Research at LKP Securities.
Financials were a pocket of interest with corporate India de-leveraging and a buoyant year last fiscal for several metal companies. High provision coverage by several large state-owned banks with a sharp focus on written-off accounts seems to provide comfort to the street for the current fiscal, he added.
M&M, Reliance Industries, Maruti Suzuki, Eicher Motors and ONGC were among the top Nifty losers, while gainers included Tata Steel, IndusInd Bank, Coal India, Hindalco Industries and Apollo Hospitals.
On the sectoral front, the metal index added 1.5 percent, while PSU bank, auto, pharma and energy indices shed 0.6-1.6 percent.
Stocks and sectors
On the BSE, the metal index rose 1.5 percent, while the auto index slipped nearly 2 percent.
BSE midcap and smallcap indices ended flat.
A long build-up was seen in Navin Fluorine International, Gail India and SRF, while a short build-up was seen in GNFC, Bandhan Bank and IDFC.
Among individual stocks, a volume spike of more than 500 percent was seen in MRF, PI Industries and IOC.
On the BSE, more than 100 stocks, including EID Parry, Insecticides (India), Timken India and Venus Pipes, touched their 52-week highs.
Outlook for July 26
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
Investors traded with caution ahead of the Federal Reserve meeting on July 27 when the American central bank is expected to hike rates by 75 basis points.
Technically, on daily charts, the Nifty formed a small Doji candle, indicating indecisiveness between the bulls and bears.
For traders, 16,600 would be the level to watch out for and below it, the index could slide to 16,500-16,475.
The index will have to go past 16,700 for a fresh uptrend and above the level, the index can move to 16,780-16,850.
Gaurav Ratnaparkhi, Head, Technical Research, Sharekhan by BNP Paribas
For the last three sessions, the Nifty was trading near the upper end of a rising channel. The index was inching higher along with the upper channel line as it is an upward sloping channel but now it had parted from that upper channel line on the downside.
Consequently, it posted a negative daily close after six consecutive positive sessions. Thus the index seems to have stepped into a short-term consolidation.
The hourly momentum indicator developed a negative divergence. Structurally, the index can witness a brief consolidation in the range of 16,480-16,750 in the coming sessions.
Kunal Shah, Senior Technical Analyst, LKP Securities
The Nifty will likely consolidate in the range of 16,400-16,800 ahead of the US Fed meeting. The trend remains on the upside and one should stick to a buy-on-dip approach.Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.