Indian equity benchmarks relinquished some ground in early trading on Wednesday, April 16, as investors appeared to book profits following a significant rally the previous day, which was spurred by relief surrounding US trade tariff policies.
The major indices slipped into negative territory shortly after the opening bell.
After celebrating the US President Donald Trump’s pause on certain tariffs with substantial gains on Tuesday, the market showed signs of consolidation.
In the initial phase of trading, the BSE Sensex declined by 119.68 points to 76,615.21.
Concurrently, the NSE Nifty 50 eased by 48.15 points, dipping slightly below the previous day’s closing level to 23,280.40.
The downward pressure was most evident among technology and pharmaceutical stocks. Within the 30-share Sensex pack, Infosys experienced the most significant drop, falling 1.54 per cent.
It was followed by automaker Maruti Suzuki, which declined by 1.35 per cent to ₹11,692.50, and Eternal [as per source text], which slipped 1.30 per cent to ₹219.40.
Sectorally, the Nifty IT index bore the brunt of the selling pressure, falling 0.94 per cent to 32,963.30.
The Nifty Pharma index also retreated, down 0.50 per cent to 20,808.20, alongside the Nifty Midsmall IT & Telecom index, which mirrored the pharma decline with a 0.50 per cent drop to 8,637.45.
Sharp contrast to Tuesday’s euphoria
This subdued start stood in stark contrast to the powerful performance witnessed just 24 hours earlier.
On Tuesday, April 15, the market had rallied strongly, closing firmly in the green.
Buoyed by the tariff relief news, the Sensex finished the session with a massive gain of 1,577.63 points (or 2.10 per cent) at 76,734.89.
The Nifty 50 had surged even higher in percentage terms, climbing 500 points (or 2.19 per cent) to close at 23,328.55.
Tuesday’s rally saw widespread participation.
Among the Sensex constituents, IndusInd Bank was the standout performer, soaring 6.84 per cent to close at ₹735.85.
Tata Motors [reported twice in source text with differing closing prices] also featured prominently among the top gainers, rising 4.50 per cent to end at ₹621.80 and ₹3,257.40 respectively.
Impressively, only two Sensex stocks – defensive heavyweights ITC (down 0.36% at ₹420.30) and Hindustan Unilever (down 0.23% at ₹2,361.05) – ended Tuesday in the red.
Sectorally, the Nifty Realty index led the charge on Tuesday, skyrocketing 5.64% to close at ₹834.75.
Strong gains were also seen in the Nifty Financial Services Ex-Bank index (up 3.53% at ₹26,978.65) and the Nifty Auto Index (up 3.39% at ₹21,246.20).
Institutional activity on Tuesday provided further insight into market dynamics. Foreign Institutional Investors (FIIs) demonstrated strong conviction, emerging as significant net buyers with purchases amounting to ₹6,065.78 crore worth of equities.
Conversely, Domestic Institutional Investors (DIIs) appeared to take profits amidst the rally, registering as net sellers to the tune of ₹1,951.60 crore worth of equities.
The early dip on Wednesday suggests a potential consolidation phase after the recent sharp upward move.
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