Benchmark equity indices recovered a portion of their intra-day losses on Wednesday as renewed buying interest in auto and select banking stocks helped improve market sentiment in the second half of the session
MUMBAI — Benchmark equity indices recovered a portion of their intra-day losses on Wednesday as renewed buying interest in auto and select banking stocks helped improve market sentiment in the second half of the session.
The Sensex, which had plunged to an intra-day low of 72,604, staged a recovery but still ended 353 points lower at 73,246.
The Nifty also rebounded from its day's low of 22,498 before settling 51 points down at 22,699.
Commenting on Nifty technical outlook, experts said that the Nifty index remains range-bound on the daily chart, consolidating within the broader 22,400–22,800 band.
"Key support is placed at 22,500, where solid buying interest repeatedly emerges, while 22,800 acts as formidable resistance after the index failed to hold 22,700 during market hours," analysts stated.
Among the Nifty constituents, Infosys, Reliance Industries and ONGC emerged as the top laggards, weighing on the benchmark indices.
On the other hand, Larsen & Toubro, Apollo Hospitals, Trent and SBI Life Insurance were among the leading gainers and helped limit the market's decline.
The broader market outperformed the headline indices. The Nifty Midcap index advanced 0.5 per cent, while the Nifty SmallCap index gained 0.8 per cent.
Sector-wise, automobile stocks led the gains, with the Nifty Auto index rising 1.5 per cent.
Banking shares also witnessed buying support, pushing the Bank Nifty up 0.5 per cent during the session.
However, weakness in technology and energy stocks kept pressure on the broader market.
The Nifty IT and Oil & Gas indices declined about 2 per cent each, while the FMCG index slipped 0.6 per cent.
Experts said that market participants said gains in auto and banking stocks helped benchmark indices recover from the day's lows.
"For long-term investors, the focus can gradually shift from managing near-term volatility to selectively accumulating quality businesses at attractive valuations," analysts noted.