Sensex Dips 300 Points, Nifty Slips Under 25,100 as Investors Book Profits

Benchmark indices opened sharply lower on Wednesday as profit booking resumed after recent gains, triggering volatility across Dalal Street.

At 9:22 am, the S&P BSE Sensex fell 309 points to 81,792.86, while the NSE Nifty50 dropped 100 points to 25,069.45. Broader markets also experienced early losses amid persistent selling pressure.

Sectoral performance
Top Nifty50 laggards included Tata Motors, Hero MotoCorp, Tech Mahindra, Wipro, and Bajaj Auto. On the other hand, Trent, SBI, Maruti, Asian Paints, and ONGC were among the early gainers.

Expert insights
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, highlighted concerns over elevated global asset prices, echoing US Fed Chair Jerome Powell’s recent warnings about inflation risks and challenging monetary conditions. He noted that although Nifty is about 4% below its September 2024 peak, valuations remain above long-term averages. Smallcap valuations, he cautioned, are stretched and may see further corrections, emphasizing that investors should prioritise growth and reasonable valuations during market dips.

Anand James, Chief Market Strategist at Geojit Investments, provided a technical outlook: “The 25,000 level on Nifty continues to provide support, while resistance near 25,278 limits upside. Until a clear close above 25,330 is achieved, weak momentum suggests the index could remain in the 24,880–24,800 range.”

Prashanth Tapse, Senior VP (Research) at Mehta Equities, cited domestic and global headwinds: “Warnings of stagflation from US Fed Chair Jerome Powell have spooked markets ahead of Friday’s US PCE inflation report. Domestically, sentiment is dented by the proposed 50% tariff hike on Indian exports and a one-time $100,000 H-1B visa fee for Indian professionals. The rupee’s record fall to 88.5 against the dollar has triggered heavy FII outflows, with net sales hitting Rs 17,034 crore in September.”