On Tuesday, Indian equity markets witnessed a notable decline, with the Nifty 50 slipping below 25,600 and the Sensex falling nearly 519 points. The selloff was broad-based as weak global cues and continued profit booking weighed on investor sentiment. Persistent Foreign Institutional Investor (FII) outflows and uncertainty in global markets further contributed to the cautious mood. Metal stocks declined due to sluggish demand forecasts and weaker industrial output in China, while IT shares fell after disappointing Q2 results. Markets remained closed on Wednesday for Guru Nanak Jayanti.
Analysts expect volatility to persist amid key global developments and domestic earnings announcements later this week. Abhinav Tiwari of Bonanza said reduced market liquidity during the shortened week could trigger sharp intraday swings. Rupak De of LKP Securities noted that Nifty may extend its correction if it falls below 25,590, with support around 25,500–25,525 and resistance at 25,700.
Stock recommendations include Garuda Construction (target ₹240), Tatva Chintan Pharma (₹1,650), Oberoi Realty (₹1,860), PNB (₹128), and IEX (₹150). Shiju Koothupalakkal suggests buying Gokul Agro (₹187 target), Baazar Style Retail (₹354), and GNG Electronics (₹364), citing strong technical setups and bullish momentum across these counters.
